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•Recommends revival of domestic cotton production
By Merit Ibe
The Centre for the Promotion of Private Enterprise (CPPE) has warned that the Senate’s resolution seeking a ban on textile fabric imports could inflict more damage on Nigeria’s economy than the intended benefits of reviving the country’s struggling textile industry.
In a statement issued on Sunday, the Chief Executive Officer of CPPE, Dr. Muda Yusuf, said although efforts to revive local textile manufacturing are commendable, an outright import prohibition would disrupt key industries, threaten millions of jobs and worsen supply chain challenges. According to Yusuf, the proposal overlooks the broader economic ecosystem that depends on imported textile materials and focuses narrowly on the challenges facing domestic textile manufacturers.
“The proposed measure is unlikely to achieve its intended objectives and could have significant adverse consequences for the Nigerian economy,” he said.
The economic policy think tank argued that Nigeria’s fashion, garment-making and tailoring industry, estimated to be worth about N10 trillion, is considerably larger than the textile manufacturing sector and provides livelihoods for an estimated 10 million Nigerians.
It noted that textile fabrics serve as critical raw materials for thousands of fashion designers, tailors and garment manufacturers across the country.
CPPE warned that restricting textile imports would increase production costs, reduce consumer choice and place thousands of micro, small and medium-sized enterprises under severe pressure.
Beyond the fashion industry, the organisation said Nigeria’s furniture and interior design sector, valued at about N7 trillion, also relies heavily on imported fabrics for upholstered furniture, office furniture, hotel furnishings and mattresses.
An import ban, it said, would raise production costs and weaken the competitiveness of businesses operating within the sector.
The organisation maintained that the decline of Nigeria’s once-thriving textile industry was largely driven by structural challenges rather than import competition.
According to CPPE, high energy costs, poor infrastructure, expensive credit, obsolete production technology, logistics bottlenecks, policy inconsistency, smuggling and limited access to long-term financing have collectively eroded the competitiveness of local textile manufacturers.
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Yusuf observed that imported textile fabrics already attract combined Import Duty and Import Adjustment Tax of between 35 and 45 per cent, yet these protective tariffs have failed to revive domestic production because the industry’s core problems remain unresolved.
“The challenge confronting Nigeria’s textile industry is fundamentally one of competitiveness rather than import penetration,” he said.
He further argued that domestic textile manufacturers currently lack the capacity to meet the quantity, quality and variety of fabrics required by Nigeria’s garment, fashion, furniture and interior decoration industries.
As a result, an outright ban would likely create supply shortages, drive up prices and negatively affect downstream industries that employ significantly more Nigerians than textile manufacturing itself.
Rather than impose import restrictions, CPPE urged the Federal Government to adopt a comprehensive value-chain strategy aimed at restoring the industry’s competitiveness.
The group recommended prioritising the revival of domestic cotton production through improved seedlings, mechanisation, enhanced security for farming communities, extension services and guaranteed off-take arrangements for farmers.
It also called for the establishment of a Textile Competitiveness Fund, financed partly from textile-related import taxes, to provide single-digit financing for technology upgrades and industrial modernisation.
Other recommendations include mandating military, paramilitary agencies, schools and other public institutions to prioritise locally produced textiles and garments for uniforms, strengthening border enforcement to curb smuggling, reducing energy costs, improving infrastructure and lowering financing costs for manufacturers.
CPPE warned that a textile import ban could also encourage increased smuggling while reducing customs revenue.
It concluded that Nigeria’s textile industry can only achieve sustainable revival through structural reforms that lower production costs, improve productivity, revive cotton farming and stimulate local demand through strategic government procurement, rather than through outright import restrictions.
