The federal government and development financing institutions have been asked to investigate restructuring options for struggling textile and cotton firms before liquidation to protect jobs and rebuild Nigeria’s industrial base.
Dr Bello Salman, a member of the Cotton, Textile and Garment Development Forum (CTGDF) made the plea in Abuja, noting that recovering loans should not be at the expense of viable industries and the people dependent on them.
Salman said the breakdown of a facility impacts the entire production chain from cotton farmers and transporters to factory workers, suppliers and textile makers, Weekend Trust reports.
But creditors must first decide if a distressed firm can return to lucrative production, he said, even as the Bank of Industry (BOI) and other state financial institutions have a duty to recoup public cash.
“The forced sale of specialised machinery and industrial land might give short-term loan recovery but could permanently destroy assets needed for Nigeria’s planned industrial revival,” he said.
His appointment comes as the country tries to resuscitate the cotton, textile and apparel industries. The National Economic Council approved the establishment of a Cotton, Textile and Garment Development Board domiciled in the Presidency and driven by the private sector in April 2025. Funding is expected to come from the textile import fee.
Salman remarked that the project should focus on developing an integrated value chain where farmers supply ginneries, ginneries supply textile mills and manufacturers create for domestic and export markets.
He advocated a plan for industrial recovery and restructuring where strategic distressed factories would be subject to impartial technical, financial, legal and market assessments before closure.
He said the assessments should determine the state of machinery, availability of raw materials, energy requirements, market prospects, debt obligations and the potential for attracting new investors.
Salman advised debt restructuring, rehabilitation of machinery, better governance, fresh working capital and collaborations with key investors and skilled operators for the viable factories.
But he said enterprises that failed the viability test should not get indefinite government support. He said restructuring should be based on measurable performance.
He also demanded better support to cotton farmers in the form of better seeds, timely inputs, extension services, mechanisation and assured markets.
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