Hot SourceBy Kayode Akinmade
Lovers of good things would have been extremely delighted hearing the latest news emanating from Nigeria’s Gateway State, indicating that a $2bn garment factory is set to birth in the state. The news, thrilling and predictive of a bright future for the state and Nigeria as a whole, is that the Dapo Abiodun-led government, in a groundbreaking partnership with Arise Integrated Industrial Platform (IIP), an Indian-headquartered multinational, is set to establish the world’s largest garment manufacturing facility in the state. The gist: with a financial outlay of between $2 billion and $2.25 billion, this transformational initiative is poised to alter the landscape of Nigeria’s textile sector, resuscitate cotton farming, and place Ogun at the center of Africa’s industrial map. Visit the Special Agro Processing Zone at the Ogun Airport City in September this year, and see the factory taking shape.
And what will this $2 billion garment factory do? It will produce an estimated 4.4 million garments daily and employ between 120,000 and150,000 people directly and indirectly. It is immediately evident that the project, with Ogun State dedicating 10 hectares of land for cotton growing, will boost cotton farming and textile production in Nigeria. It has the beautiful prospect of turning the Gateway State into a garment hub in Africa. The investment will resuscitate Nigeria’s textile industry, which has declined in recent years.
And talking about the big decline in Nigeria’s textile industry, don’t we all remember that with deep pain? Don’t we all remember with nostalgia, the good old days when almost everyone in Nigeria bought and used Nigerian fabrics with pride, and without apology? Those were the days, you no doubt recall, when the uniforms used in hospitals, hotels and other places were produced in Nigeria. For those resident in the South-West, surely the memories of the textile factories in Ikorodu, Ikeja, Ado Ekiti, and other places has not completely faded from memory. In those days, you saw and lived Nigeria wherever you turned, and textile factories were everywhere. Take Kano, for instance. It was known for its big textile industry and some of today’s big political names, including Adams Oshiomhole, made their names there protecting the interest of the organised labour. The industry arguably accounted for more than 10 percent of the total employment coverage in Nigeria in those days. And then came the military incursion that ravaged many things..
Today, if you go to some places that used to be industrial estates, you will discover that they have now been overtaken by churches and supermarkets. As a result of the terrible downturn in Nigeria’s textile industry, foreign-made clothes, even of local fabrics like ankara and adire, constantly flood the Nigerian market. Foreigners and foreign goods dominate our markets and the money we ought to make as IGR is not generated. Because of bad leadership, we lost thousands of jobs. Those who ought to be employed in the textile value chain roam the streets in search of nonexistent jobs.
This is why the latest development in Ogun State should excite all Nigerians. As you are no doubt aware, there are several layers in the textile value chain, from raw material production of cotton, synthetic fibers or other materials, to ginning and processing into fibers, and the spinning of fibers into yarn. Then there is weaving or knitting, dyeing and finishing, cutting and sewing of fabric into garments or textiles, and the distribution of finished products to retailers, who then sell to the final consumers. You are looking at an extensive chain involving farmers (planters and harvesters),ginners and processors, spinners, weavers and knitters, dyers and finishers, manufacturers, wholesalers and distributors, and retailers; suppliers who provide machinery, chemicals, and other inputs, designers who make patterns for textiles and garments, traders in textiles and garments, and even the government regulators.
For a very long time, Nigeria has been relying on foreign textile industries. Nigerians go to China, India and other countries to bring clothing into Nigeria. It is as if they no longer remember that the Nigerian textile industry used to supply all the clothing needed in hotels, including beddings, curtains, etc. In this regard, it is a good thing that Ogun is creatively looking backwards in the direction of production. For one thing, job creation is in the offing: workers in the projected firm will be in their hundreds, and with time that axis can even become a community on its own. A factory with a production capacity of 100 tons/hour, 1,000 tons per day, 40,000 tons per month, and 350,000 tons per year is no joke. The potential benefits to Ogun State and Nigeria are clearly immense. For some time now, Ogun has taken a lead role in bringing investors to Nigeria, creating an enabling environment, giving opportunities to residents and creating prosperity for all.
Speaking during his meeting with the leadership of Arise Integrated Industrial Platform (IIP) led by Gagan Gupta, President of the Arise Integrated Industrial Platform, Governor Abiodun put the latest development in perspective. Hear him: “What we are here for today is to put together a project implementation team to identify what needs to be done and when, to jointly establish timelines for each of the tasks so that we can prepare for the groundbreaking of the project in September. What I find most exciting is how this project will resuscitate cotton farming and cotton growing in Nigeria and the ripple effects on the economy. Ogun State fortunately grows the highest quality cotton in Nigeria. We dedicated 10 hectares of land in the first instance for cotton growing. We have a very active grower association in our state. I am hoping that you find the right cotton inputs that you will make available to these farmers, and they will become the outgrowers. That way, you will take over the ownership of the entire process, and off-take agreements would have been signed with them so that they know what is expected at harvest.”
The Governor’s view was echoed by Gagan Gupta, who averred that “Nigeria has the potential to be Africa’s textile hub.” It is significant that Ogun under Abiodun continues to attract investments in various sectors, from agriculture to pharmaceuticals, etc. Already, an agro-cargo airport that will transport the business landscape is in place, and work is ongoing on dry ports. Nigerians certainly have not forgotten that the world’s largest cement factory is, courtesy of the billionaire business mogul Aliko Dangote, berthing in Ibeshe, Ogun State. The Abiodun government is leaving no stone unturned in making Ogun Nigeria’s top investment destination, and the future promises to bring in more harvests of economic opportunities, and shared prosperity for the great people of Ogun State. It is not fortuitous that under its visionary governor, the state just hosted both the National Sports Festival and the Third African Athletic Championship (CAA U18 and U20), to global acclaim. In Dapo Abiodun’s Ogun, excellence is the watchword.
*Akinmade is Special Adviser on Media and Strategy to Ogun State Governor.
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