Ogun State has unveiled plans to establish a $2 billion garment manufacturing hub in partnership with pan-African industrial developer Arise Integrated Industrial Platform, in a bold move to revive Nigeria’s struggling textile industry and position the country as a regional manufacturing powerhouse.
The massive project, announced during a strategic meeting in Abeokuta involving Governor Dapo Abiodun, Arise IIP executives, and officials from Afreximbank, will be located within a Special Agro-Processing Zone near the Gateway International Agro-Cargo Airport in Iperu.
Afreximbank is backing the initiative with financial and technical support.
Set to become one of Africa’s largest textile production centers, the integrated facility will be capable of producing up to 4.4 million garments daily and processing 1,000 tons of cotton per day.
The project is expected to create between 120,000 and 150,000 direct and indirect jobs, with additional employment opportunities in logistics, retail, and auxiliary services.
A joint implementation team is being established to fast-track project delivery, resolve administrative hurdles, and prepare for a groundbreaking ceremony scheduled for September 2025.
Operations are projected to begin by mid-2026.
Arise IIP, which has delivered similar industrial zones in Gabon, Togo, and Benin, will oversee construction and management. Gagan Gupta, President of Arise IIP, said the hub aims to create a fully integrated and globally competitive textile ecosystem in Nigeria, linking cotton cultivation to finished products.
Ogun State has already allocated 10 hectares of land for cotton farming and plans to engage local farmers through outgrower schemes and guaranteed offtake agreements.
The hub is expected to serve both domestic and regional markets, taking advantage of Nigeria’s large population and access to the ECOWAS free trade zone.
Industry leaders present at the announcement, including Arvind Mathur, Global Head of Textiles at Arise, and ATMS CEO Raja Rajaburu, highlighted the project’s potential to make Nigeria a key player in Africa’s textile value chain, citing improved infrastructure and strong government backing as critical success factors.
The initiative forms part of Ogun State’s broader industrialization strategy centered on manufacturing, agro-processing, and employment generation.
It also aligns with the federal government’s push to boost local production, reduce import dependence, and revive legacy industries.
Once a major employer, Nigeria’s textile sector has suffered years of decline due to poor infrastructure, policy inconsistencies, and competition from low-cost imports.
