To bail the sector out, the government established the Cotton, Textile and Garment (CTG) Revival Fund in 2006 to tackle the problem associated with funding in the industry. The fund began operation in 2009 and lent to textile manufacturers at about 6 per cent interest rate. But it has often been difficult for industry players to access the fund. CTG has on the whole failed to bail out wobbling textile companies.

Nigeria’s textile industry has suffered untold hardship owing to policy somersaults, poor research and development, lack of competition in supply of raw materials, smuggling and poor power supply, among others. Other issues are unbridled imports, smuggling, inability of government agencies to patronise local manufacturers, poor power supply and absence of black oil in northern Nigeria.

Investors from Pakistan are showing interest in reviving textile units in Nigeria. They have begun by physically inspecting some of the companies. Potential investors had been told of the challenges facing textile companies and they will have to map out strategies to deal with issues relating to cotton seedlings, which are essential raw materials used in the industry. They are also expected to pump in funds that will be able to raise machinery to world standards.