Cotton (Gossypium spp.) is an important economic crop and the largest source of textile fiber in the world. Cotton is an important rare economic success story in Sub-Saharan Africa and a major source of foreign exchange earnings in more than 15 countries of the continent and is a crucial source of income for millions of rural people. Over the years, Nigeria cotton production declined due to pest infestation and other related factors. The discovery of Bt cotton and it success cultivation inspired the revitalizations of the comatose cotton farming system leading to the development of Nigeria’s two homegrown Bt cotton varieties: MRC 7377 BG 11 and MRC 7361 BG 11. The cotton has been genetically modified to include a gene from Bacillus thuringiensis to combat insect attack. Environmental impact assessment shows Nigeria Bt cotton is safe and possible strategies towards sustainability, improvement of the recorded success and the fiber quality were also suggested. Here, an outlook of Nigeria cotton revolution is presented and the role of transgenic cotton (Bt Cotton) in revitalization of the cotton farming situation is discussed. The paper highlights challenges facing cotton sectors in Nigeria and even in Africa and demonstrates how reform in the sectors is the key to sustaining growth, improving competitiveness and reducing rural poverty. It provides national and regional policy makers with a number of recommendations based upon the observable lessons of past reform programs.