The Nigerian new administration favours the revival of the country's textile and footwear industry as it would play a significantly major role to diversify the economy. Not only could it result in revenue diversification and reduce pressure on the import bill, it could also help boost employment, said FBN Capital, the local financial institution.

The Nigerian Investment Promotion Commission (NIPC) recently announced it would work closely with National Cotton, Textile and Garment (CTG) policy committee to resuscitate the country's textiles industry.

The sub-sector accounted for 21 percent of manufacturing gross domestic product in the third quarter of the current year. However, it contracted by -13 percent year-on-year.

However as per the report released by the National Union of Textile, Garment and Tailoring Workers of Nigeria (NUTGTWN), the textile industry performed poorly in the first half of 2014 mainly due to heavy inflow of smuggled textiles, which usually accounts for over 75 percent of Nigeria's textile market.

Annual cotton production was estimated at 533 metric tonnes (mt), with Zamfara and Katsina accounting for 25 percent and 22 percent of total production respectively.

There are suggestions over 30 operational textile mills are operational while 80 are moribund.

The CBN has indicated interest in lending support to this industry through the establishment of an intervention fund at a single digit interest rate.

Calls to broaden the economic horizons have been loud in recent months owing to the decline in the international price of oil, a major foreign currency earner for Nigeria.