The 2025–2030 road map for Midland Cosmos Ltd (AIPCC Energy) focuses on scaling industrial energy supply to permanently lower the production costs for Nigeria's 370 target textile firms.
Phase 5: Long-Term Industrial Sustainability (2026–2030)
Infrastructure for Bulk Supply: By early 2026, Midland Cosmos aim to establish dedicated LPFO (Black Oil) industrial corridors. This involves creating virtual pipelines—specialized fleets of tankers and rail-connected depots—to move fuel from the Edo and Koko refineries to high-demand zones in the North.
Energy-to-Power Conversion: Moving beyond just fuel supply, the venture is exploring on-site gas-to-power and LPFO-fired turbine solutions for large-scale mills. This would allow factories to bypass the national grid entirely, targeting an energy cost share of less than 15% of total production expenses by 2028.
Strategic Integration with Federal Support
The venture is designed to capitalize on the Federal Government’s 2025 revitalisation agenda:
Textile Modernization Fund (TMF): The government is deploying a ₦500 billion fund to upgrade 50% of Nigeria's textile capacity within five years. Midland's role is to ensure these modernized mills have the specialized fuel required to run state-of-the-art automated equipment profitably.
Tax and Investment Incentives: Under new 2025 guidelines, textile investments exceeding $10 million may qualify for 5–7 year corporate tax holidays, especially if they source 70% of raw materials locally. Midland’s energy supply helps these firms meet the profitability thresholds required to maintain these incentives.
2030 Macro-Economic Targets
Metric 2025 Baseline 2030 Target
Import Reduction ₦814 Billion (9-month 2025) $4 Billion annually (80% reduction)
Employment ~10,000–25,000 1.4 Million to 2 Million jobs
Manufacturing Capacity Recessional since 2019 50% of total capacity modernized
Local Sourcing High reliance on Asian yarn 100% of military/paramilitary uniforms
Future Outlook: The Export Phase
By 2028, once domestic stability is achieved, Midland Cosmos Ltd intend to support the transition of Nigerian textile firms into the export market. Leveraging the AfCFTA, Nigeria's revived textile hubs—powered by AIPCC's refined energy—are positioned to become the primary garment suppliers for the West African sub-region, transforming a former ₦814 billion import deficit into a significant foreign exchange earner.
With Midland Cosmos group's local refineries will.produce at cheaper rate
By sourcing Low-Pour Fuel Oil (LPFO), commonly known as "black oil," directly from its local refineries, Midland Cosmos Ltd (operating as Midland Energy a subsidiary that controls Laniyan Refinery and Midland Refinery) can significantly lower production costs for Nigerian textile manufacturers. In the current 2025 landscape, energy costs typically consume 35% to 40% of a textile mill's total production budget.
Cost-Saving Impact of Local LPFO
Reduced Energy Overheads: Shifting from expensive diesel (Automotive Gas Oil) to locally refined LPFO is projected to reduce textile energy overheads by an estimated 25%.
Direct Supply Advantage: By utilizing their own refineries, such as the Edo Refinery or the Koko Refinery project, Midland and Cosmos bypass middlemen and import-related costs (like clearing and landing fees), allowing for subsidized industrial pricing.
Capacity Stabilization: Local production of LPFO helps mills avoid "production hitches" caused by fuel scarcity and price volatility, which have historically forced many Nigerian mills to close.
Strategic Importance for 2025 Revival
The ability to produce at a cheaper rate is the cornerstone of the government's 2025 plan to revive 370 textile firms:
Market Competitiveness: Lower production costs are essential to competing with imported textiles, which hit a massive ₦814 billion in the first nine months of 2025.
Industrial Rejuvenation: Access to cheaper fuels is already being credited with stimulating the "rejuvenation of key industries," including textiles in Northern Nigeria.
Economic Goals: This energy strategy supports the federal goal of localizing $4 billion in annual textile spending and creating over 1.4 million jobs.
Metric Current Estimate (Diesel/Grid) 2025 Goal (Local LPFO)
Energy Cost Share 40% <15%
Production Savings N/A ~25% Reduction
Operational Mills ~25 370 (Target)
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