The Centre for the Promotion of Private Enterprise (CPPE) has cautioned against the Senate’s resolution calling for a ban on textile fabric imports, warning that the proposed restriction could hurt the Nigerian economy, disrupt supply chains, and threaten millions of jobs.
In a statement signed by the CPPE’s Chief Executive Officer, Muda Yusuf, on Sunday, the think tank said that although reviving Nigeria’s textile industry is a legitimate objective, banning textile imports would not address the sector’s underlying problems.
On 9 June, the Senate called for a total ban on the importation of textile products into the country as part of efforts to revive the struggling textile industry and create jobs. The lawmakers argued that a complete ban on textile fabric imports,is necessary to protect local manufacturers and revive cotton production.
In its statement, the CPPE said the proposed measure is unlikely to achieve its intended objectives and could have significant adverse consequences for the Nigerian economy.
“While the objective of reviving Nigeria’s textile industry is legitimate and commendable, an outright import prohibition is unlikely to achieve that objective.
“Rather than revitalising the textile industry, the proposed ban could impose substantial collateral costs on downstream industries, disrupt critical supply chains and jeopardise millions of jobs and livelihoods.
“The proposal reflects a narrow view of the textile industry’s challenges and overlooks the extensive linkages within Nigeria’s textile, garment, fashion, furniture and creative economy value chains,” the think tank said.
It said effective industrial policy should address the underlying constraints to competitiveness rather than merely restrict imports.
Mr Yusuf said Nigeria’s fashion, garment-making and tailoring industry is substantially larger than the textile manufacturing segment.
“Conservatively valued at about ₦10 trillion, the industry provides livelihoods for an estimated ten million Nigerians and is one of the country’s most vibrant creative economy sectors. Textile fabrics are critical intermediate inputs for this ecosystem,” he said.
The think tank said restricting imports would disrupt production, increase costs, reduce consumer choice and threaten thousands of micro, small and medium enterprises engaged in fashion, tailoring and garment manufacturing.
It added that the garment industry also generates substantial domestic value addition through design, tailoring, branding, embroidery, merchandising and retailing.
“In many cases, the local value added exceeds the value of the textile inputs. Public policy should therefore protect this broader value chain.
“Textile fabrics are equally important inputs for Nigeria’s rapidly growing furniture and interior design industry, where they are extensively used in upholstered furniture, office furniture, hotel furnishings and mattresses.”
He said the industry is valued at an estimated N7 trillion, noting that a supply disruption would increase production costs and weaken the competitiveness of the sector.
Mr Yusuf said the decline of Nigeria’s textile industry is primarily the consequence of longstanding structural constraints rather than import competition.
These, he said, include high energy costs, expensive credit, poor infrastructure, logistics bottlenecks, obsolete technology, smuggling, weak access to long-term finance and policy inconsistency.
“Textile manufacturing is one of the most energy-intensive industries globally. Operating within a high-cost production environment has severely undermined the competitiveness of local manufacturers.
“It is noteworthy that imported textile fabrics already attract combined Import Duty and Import Adjustment Tax (IAT) of between 35 and 45 per cent. Yet these tariff protections have not restored the industry’s competitiveness because the core problem lies in production economics rather than import penetration,” he said.
The CPPE said an import ban proposition addresses the symptom while leaving the underlying causes unresolved.
“Sustainable industry revival requires lower production costs, improved productivity and stronger enforcement of the existing tariff regime,” he noted.
According to the think tank, domestic textile manufacturers currently lack the capacity to meet the quantity, quality and diversity of fabrics required by Nigeria’s fashion, garment, interior design, and furniture industries.
He said even at the peak of the textile industry’s performance, local mills did not supply the full range of fabrics demanded by the market.
“An outright import ban would therefore create supply shortages, increase production costs and weaken downstream industries that generate significantly more employment than textile manufacturing itself.”
The CPPE said reviving the textile industry requires a comprehensive value-chain approach rather than restrictive trade measures.
He said priority should be given to restoring domestic cotton production, which historically supplied the industry’s raw materials.
“Insecurity in farming communities, weak productivity, inadequate extension services and poor incentives have severely undermined cotton cultivation.
“Textile manufacturers also require access to affordable long-term finance, modern technology, reliable energy and a more competitive operating environment,” he noted.
Recommendations
The CPPE recommended a comprehensive strategy to revive the textile industry, beginning with strategic government procurement that would require the military, paramilitary agencies, schools, and other public institutions to prioritise locally produced textiles and garments for uniforms.
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It also proposed establishing a Textile Competitiveness Fund, financed with a portion of textile-related import tax revenues, to provide single-digit financing for technology upgrades and industry modernisation.
The organisation also called for the revival of domestic cotton production through improved seedlings, mechanisation, extension services, enhanced security, and guaranteed off-take arrangements for farmers.
It urged stronger border enforcement to curb smuggling and improve the effectiveness of existing tariffs, alongside reforms to reduce energy costs, improve infrastructure, lower financing costs, and create a more competitive environment for manufacturers.
The think tank concluded that improving competitiveness, rather than banning imports, offers a more sustainable pathway to revitalising Nigeria’s textile industry.
“The challenge confronting Nigeria’s textile industry is fundamentally one of competitiveness rather than import penetration.
“Sustainable revival will require structural reforms that improve productivity, reduce production costs, revive cotton production, expand access to affordable finance, and leverage government procurement to stimulate domestic demand,” the think tank said.
