• Ogun State and Arise IIP will build a $2B textile plant producing 350,000 metric tons of garments yearly.

• Set to begin in Sept 2025, the project aims to revive cotton farming via local sourcing.

• It targets growth in Nigeria’s stagnant cotton sector, which saw little change since 2004.

Nigeria's Ogun State plans a new textile plant with pan-African industrial park developer Arise IIP, Governor Prince Dapo Abiodun announced July 25 on Facebook. The $2 billion project will be located in the new airport city's Special Agro Industrial Processing Zone.

Construction of the factory is expected to begin in September 2025. Projections indicate this mega factory, set to be the country's largest, will produce 100 metric tons of garments per hour, or about 350,000 metric tons annually. This is equivalent to approximately 4.4 million garments daily.

This development follows the Nigerian government's April announcement of plans to establish a regulatory body aimed at reviving the textile industry and cotton sector.

Leveraging Effect Expected in the Cotton Sector

“What excites us even more is the revival of cotton farming in Nigeria that this project will drive. Ogun State already grows the highest quality cotton in the country, and we have allocated an initial 10 hectares for this purpose. With strong grower associations and planned offtake agreements, our farmers will become a core part of the supply chain,” Governor Abiodun indicates. 

This statement reflects the state government’s intention to leverage the future factory’s demand for raw materials to structure the cotton value chain regionally. The initiative is expected to renew farmer interest in cotton, create a favorable environment for agricultural investment, and encourage expansion of cultivated areas in the region.

The industrial project is also expected to benefit Nigeria's entire cotton sector. Ogun State currently plays a secondary role in cotton cultivation and will likely need time to meet the factory’s demand. Surrounding production zones could therefore also supply the factory with cotton.

According to the National Agricultural Extension and Research Liaison Services, or NAERLS, cotton-producing regions are primarily in the country's north. Katsina State leads, accounting for 14% of the national seed cotton output, which totaled 304,177 metric tons in 2024.

The stakes are higher given Nigeria’s cotton sector stagnation over the past two decades. NAERLS data shows, for example, that Nigeria's seed cotton production in 2004 was 306,000 metric tons, almost the same as in 2024.

Stéphanas Assocle