CPPE Warns N10trn Industry at Risk Over Textile Import Ban Push
The Centre for the Promotion of Private Enterprise (CPPE) has warned that the Senate’s push to banning textile imports could seriously harm Nigeria’s ₦10 trillion fashion industry and threaten millions of jobs, noting that the move is unlikely to significantly boost local textile production.
In a statement, CPPE’s Chief Executive Officer, Muda Yusuf, noted that while the goal of reviving Nigeria’s textile industry is admirable, a complete ban on imports could have significant ripple effects across multiple sectors of the economy.
According to the private sector advocacy group, restricting textile imports would disrupt supply chains, raise production costs and weaken downstream industries such as garment manufacturing, tailoring, fashion design, furniture production and interior decoration, all of which depend heavily on imported fabrics as production inputs.
The organisation noted that Nigeria’s fashion, garment-making and tailoring industry, valued at an estimated ₦10 trillion, supports about 10 million jobs and remains one of the country’s most vibrant creative economy sectors.
“The garment industry 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,” Yusuf said.
CPPE also warned that the proposed import ban could adversely affect the country’s furniture and interior design industry, estimated to be worth about ₦7 trillion, as textile materials are widely used in upholstered furniture, office furniture, hotel furnishings and mattresses.
Rather than import competition, the organisation argued that the decline of Nigeria’s textile industry stems largely from structural challenges, including high energy costs, expensive financing, poor infrastructure, logistics bottlenecks, obsolete production technology, smuggling, weak access to long-term capital and inconsistent government policies.
It pointed out that imported textile fabrics already attract combined Import Duty and Import Adjustment Tax of between 35 and 45 per cent, yet these protections have failed to restore the competitiveness of local manufacturers because the industry’s core challenge lies in its production environment.
According to CPPE, domestic textile manufacturers currently lack the capacity to meet the quantity, quality and variety of fabrics required by Nigeria’s fashion, garment, furniture and interior design industries.
“As a result, an outright import ban would create supply shortages, increase production costs and undermine downstream industries that generate significantly more employment than textile manufacturing itself,” the statement added.
To revive the textile industry sustainably, CPPE advocated a comprehensive value-chain strategy centred on restoring cotton production, improving access to affordable long-term finance, modernising production technology and reducing the cost of doing business.
The organisation also recommended that government should prioritise locally produced textiles and garments for uniforms used by military, paramilitary agencies, schools and other public institutions.
Other recommendations include establishing a Textile Competitiveness Fund financed from textile import tax revenues, strengthening border enforcement to curb smuggling, supporting cotton farmers with improved seedlings and mechanisation, and implementing reforms aimed at lowering energy and financing costs for manufacturers.
Yusuf maintained that Nigeria’s textile industry requires structural reforms to improve productivity and competitiveness rather than additional import restrictions, warning that a blanket import ban could encourage smuggling, reduce customs revenue and ultimately undermine sectors that contribute far more to employment and domestic value addition.
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