How To Start a Cotton Farming Business (in Nigeria)

Published on: October 7, 2025 • Categories: Entrepreneurship

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From Seed to Spin: Your Blueprint for Starting a Cotton Farming Business in Nigeria

In the heart of Nigeria’s vast savannas and fertile plains, where the sun kisses the earth and rains nurture the soil, lies an opportunity as timeless as the clothes on our backs: cotton farming. Once a cornerstone of Nigeria’s economy—contributing up to 25% of GDP in the pre-oil boom era—cotton has staged a quiet resurgence amid global demand for sustainable textiles and local pushes to revive the sector. Today, as the world grapples with supply chain disruptions and a $38 billion global cotton market beckons, Nigerian entrepreneurs are rediscovering this fluffy white gold. But starting a cotton farming business isn’t just about planting seeds; it’s about building a resilient enterprise that feeds into textiles, exports, and even seed oil production.

If you’re eyeing Nigeria’s agricultural renaissance—fueled by government initiatives like the Anchor Borrowers’ Programme (ABP) and the Central Bank of Nigeria’s (CBN) Cotton Intervention Fund—this guide is your roadmap. We’ll cover everything from soil to sales, costs to challenges, and why, in 2025, cotton could be your ticket to financial independence. Whether you’re a smallholder with a hectare or scaling to commercial levels, let’s dive in. By the end, you’ll have the tools to turn Nigeria’s untapped potential into profit.

Why Cotton Farming? The Economic Imperative

Cotton isn’t just a crop; it’s a catalyst for rural transformation. Nigeria, Africa’s fourth-largest cotton producer, cultivates it across 253,000 hectares, yielding about 51,000 metric tonnes annually. Yet, with domestic textile demand at 28,000 tonnes and exports hovering around 25,000 tonnes, there’s a glaring supply gap. The National Cotton Association of Nigeria (NACOTAN) pegs cotton as the second-largest agricultural export commodity, contributing 4% to GDP and employing over a million in the value chain—from ginning to garment making.

In 2025, global prices hover at $1.45 per kilogram for exports, with domestic wholesale at ₦0.25–₦0.48 per kg ($0.25–$0.48). A hectare can gross ₦390,000–₦975,000 at ₦155,000–₦195,000 per tonne, with yields of 2–5 tonnes. Beyond lint for fabrics, cottonseeds yield oil for cooking and livestock feed, while stalks serve as biofuel. Export opportunities abound: China, Bangladesh, and Vietnam crave Nigerian lint, with Africa’s market projected to hit $7.5 billion by 2030 at a 4.6% CAGR.

For Nigeria, reviving cotton aligns with President Tinubu’s diversification agenda. The new Cotton, Textile, and Garment (CTG) Development Board, funded by import levies, promises infrastructure boosts. Smallholders dominate (80% of production), but commercial farms can leverage mechanization for 20–100% ROI. In short: High demand, low barriers, and government backing make cotton a smart bet.

Step 1: Research and Planning – Lay the Foundation

Success starts with homework. Begin by assessing your local market: Visit ginneries in Kano or Zamfara to gauge buyer needs. Join NACOTAN for training and networks—membership is free for smallholders. Study climate data: Nigeria’s cotton zones (Northern and Southwestern savannas) offer 600–1,200 mm rainfall and 25–30°C temperatures.

Draft a business plan: Outline goals (e.g., 5 hectares yielding 10 tonnes), costs (₦500,000–₦1.5 million per hectare startup), and revenue projections. Use free templates from the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). Factor in risks like pests (bollworm) and climate variability—tools like Cropin’s app provide real-time advisories. Consult extension officers from the Federal Ministry of Agriculture for soil tests (₦5,000–₦10,000). Aim for certification under Cotton Made in Africa (CmiA) for premium export prices. Pro tip: Pilot on 0.5 hectares to test varieties before scaling. This phase costs ₦50,000–₦100,000 but saves fortunes later.

Step 2: Securing Land and Resources

Land is cotton’s cradle. Target the “cotton belt”: Zamfara, Kano, Kaduna, Katsina, Sokoto, Kebbi, Ogun, Ondo, Oyo—states producing 80% of output. Lease fertile, well-drained loamy soils (pH 6–7.5) at ₦20,000–₦50,000 per hectare annually in the North. Avoid waterlogged areas; cotton hates “wet feet.”

For a 1–5 hectare startup, budget ₦100,000–₦500,000 for land prep: Clearing (₦20,000/ha), tilling (₦30,000/ha with tractor hire), and furrowing. Source certified seeds from the Institute of Agricultural Research (IAR) or NACOTAN—SAMCOT 11 or 14 varieties yield 2.5–3 tonnes/ha, resisting pests. A kg costs ₦2,000–₦3,000; plant 10–15 kg/ha at 1-inch depth, 4-inch spacing. Water: Rain-fed suffices in savannas, but irrigation (drip systems, ₦200,000/ha) boosts dry-season yields by 30%. Tools: Hoes, sprayers (₦50,000 total for small scale).

Step 3: Funding Your Venture – Money Grows Cotton

Capital is king in agribusiness. A 1-hectare startup runs ₦500,000–₦1 million: Seeds (₦30,000), fertilizers/pesticides (₦150,000), labor (₦100,000), land (₦50,000), misc (₦170,000). Scaling to 5 hectares? ₦2.5–5 million, including mechanization (tractor lease: ₦200,000/season).

Tap these sources:

Government Schemes: ABP offers ₦200,000–₦500,000 loans at 9% interest, repayable post-harvest. CBN’s Cotton Fund disbursed ₦100 billion in 2024.
Microfinance: Bank of Agriculture or LAPO provide ₦100,000–₦1 million with group guarantees.
Private/International: NACOTAN partners with WACOT for input credit; USAID’s Feed the Future grants up to $50,000 for sustainable farms.
Crowdfunding/Investors: Platforms like Farmcrowdy connect you to diaspora funders; expect 10–20% equity for ₦1 million+.

Only 7% of smallholders access credit—join cooperatives to boost eligibility. Track expenses via apps like Esusu for ROI analysis.

Step 4: Planting and Cultivation – From Seed to Boll

Timing is everything: Plant May–June in the rainy season for 150–180-day maturity. Sow in rows 75–100 cm apart, thinning to 20–30 cm after germination (7–10 days).

Nurture: Apply NPK 15:15:15 fertilizer (200 kg/ha) at planting, urea (100 kg/ha) at 6 weeks. Irrigate weekly if dry. Weed thrice: Pre-emergence herbicide (₦20,000/ha) plus manual labor. Pests lurk—boll weevils and aphids ravage 30% of yields. Scout weekly; use Bt varieties or neem-based sprays (₦50,000/season). Rotate with maize to prevent soil fatigue. Intercrop with cowpeas for extra income. Labor: 5–10 workers/ha at ₦5,000/day for peak seasons. Mechanize weeding/harvesting for efficiency.

Step 5: Harvesting and Post-Harvest Handling

Boll burst signals harvest (October–December). Pick ripe ones thrice, yielding 400–500 kg seed cotton/ha baseline, up to 2.5 tonnes with best practices. Dry in shade to 10% moisture; gin locally (₦50/kg fee) for lint (35% yield). Store in ventilated bags; transport to markets via cooperatives. Grade for quality—A-grade lint fetches 20% premium.

Marketing and Sales: Turning Fluff into Funds

Sell to ginneries (e.g., WACOT in Katsina) or exporters. Local prices: ₦750,000/tonne in 2025. Export via Lagos ports to Asia (₦1.8 million/tonne equivalent). Join NACOTAN for buyer links; digital platforms like AgroMall streamline sales. Diversify: Sell seeds to oil mills, stalks for mulch. Aim for contracts—Olam Agri buys 40,000 tonnes yearly.

Challenges and Solutions: Navigating the Thorny Path

Cotton’s thorns include:

Low Yields/Pests: Average 202 kg/ha vs. potential 2 tonnes. Solution: Adopt hybrids via NACOTAN; IPM reduces losses 50%.
Finance Gaps: 93% smallholders credit-less. Solution: ABP cooperatives; digital lending via apps.
Climate/Market Volatility: Erratic rains, smuggling erode prices. Solution: Climate-smart seeds; CmiA certification for stable exports.
Infrastructure: Poor roads hike transport 20%. Solution: PPPs for rural hubs.
Declining Textile Demand: Imports flood markets. Solution: CTG Board’s anti-smuggling levies.

With NACOTAN’s digital tools impacting 120,000 farmers, resilience is building.

Success Stories: Lessons from the Fields

In Gombe, farmer Aisha Yusuf scaled from 1 to 10 hectares via ABP, netting ₦5 million in 2024. Katsina’s co-ops export to China, boosting incomes 40%. Yield Initiatives’ non-GMO trials promise 30% yield jumps. Key takeaway: Community and tech trump isolation.

Conclusion: Sow Today, Reap Tomorrow

Starting a cotton farming business in Nigeria is more than agriculture—it’s entrepreneurship with legacy. With startup costs under ₦1 million for small scale, government lifelines, and a market hungry for 760,000 tonnes by 2030, the barriers are surmountable. Act now: Register with NACOTAN, secure ABP funding, and plant your first row. In a nation where 70% rely on farms, your venture could employ dozens, revive textiles, and export dreams.

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