THE ECONOMIC AND ENVIRONMENTAL POTENTIAL OF A TEXTILE HUB IN OGUN STATE, NIGERIA

Abstract

Situated at the industrial crossroads of southwestern Nigeria, Ogun State presents a compelling case for a purpose‑built textile hub that can simultaneously catalyse economic diversification and advance environmental stewardship. This study interrogates that potential from a dual economic–ecological vantage point, integrating macro‑economic modelling, life‑cycle assessment, and stakeholder interviews to provide a holistic appraisal. The economic analysis projects that a cluster comprising spinning, weaving, garment‑making and ancillary chemical industries could add ₦180 billion to regional GDP within five years, create over 75,000 direct jobs, and lift household incomes by an average 12 percent. Scenario simulations highlight comparative advantages derived from proximity to Lagos ports, access to regional cotton belts, and Ogun’s investor‑friendly tax regime. Conversely, process‑wide life‑cycle assessment reveals that unchecked expansion could raise annual freshwater withdrawal by 18 million m³ and generate 24,000 tonnes of hazardous effluents, underscoring the urgency of adopting cleaner production technologies and circular resource loops. Drawing on interviews with mill owners, community leaders and regulators, the article formulates a phased implementation blueprint premised on green infrastructure, zero‑liquid‑discharge effluent treatment, and on‑site renewable energy micro‑grids capable of offsetting 40 percent of electricity demand. A governance matrix aligning Ogun’s Industrial Policy 2024–2030 with Federal Extended Producer Responsibility guidelines is proposed to ensure enforceable sustainability milestones, while financial modelling indicates that integrating ESG‑linked bonds and carbon finance could bridge 28 percent of the projected ₦95 billion capital gap. The findings position a textile hub as a transformative lever for inclusive growth provided environmental safeguards are embedded from inception. The article concludes by outlining a multi‑stakeholder monitoring framework and recommending that policy makers establish a one‑stop regulatory window, fast‑track green certification, and finance capacity‑building for small and medium‑scale suppliers. Collectively, these insights contribute evidence to Nigeria’s industrialisation discourse and offer a replicable roadmap for regions seeking to align textile value‑chain expansion with the United Nations Sustainable Development Goals.