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 stated 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 imports is necessary to protect local manufacturers and revive cotton production.
However, the CPPE said the proposed ban would impose substantial collateral costs on downstream industries rather than revitalise the textile sector.
“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 CPPE said. Narrow view
The think tank argued that the proposal reflects “a narrow view” of the industry’s challenges by overlooking the extensive linkages between textile manufacturing and Nigeria’s garment, fashion, furniture, and creative economy value chains.
According to the CPPE, Nigeria’s fashion, garment-making, and tailoring industry, estimated at N10 trillion, provides livelihoods for around 10 million Nigerians and relies heavily on imported textile fabrics as inputs.
It warned that restricting textile imports would disrupt production, raise costs, reduce consumer choice, and threaten thousands of micro, small, and medium-sized enterprises operating within the fashion and garment industry.
The group added that the garment industry generates significant domestic value through design, tailoring, branding, embroidery, merchandising, and retailing, often creating more local value than the textile inputs themselves.
The CPPE also stated that textile fabrics are critical inputs for Nigeria’s furniture and interior design industry, estimated at ₦7 trillion, noting that any disruption in fabric supply would increase production costs and weaken the sector’s competitiveness.
The organisation maintained that the decline of Nigeria’s textile industry was driven mainly by structural constraints rather than import competition.
“The decline of Nigeria’s textile industry is primarily the consequence of long-standing structural constraints rather than import competition.”
“These include high energy costs, expensive credit, poor infrastructure, logistics bottlenecks, obsolete technology, smuggling, weak access to long-term finance, and policy inconsistency,” the CPPE said.
Failed tariffs
The group noted that imported textile fabrics already attract a combined Import Duty and Import Adjustment Tax (IAT) of between 35 and 45 per cent. Still, it said the tariff protections have failed to revive the industry because the major challenge remains the high cost of production.
“It is noteworthy that imported textile fabrics already attract a 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,” it said.
The CPPE further argued that domestic textile manufacturers currently lack the capacity to meet the quantity, quality, and variety of fabrics required by the country’s fashion, garment, furniture, and interior design industries.
“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,” it said.
Value-chain strategy
Instead of imposing import restrictions, the CPPE called for a comprehensive value-chain strategy to revive the textile sector.
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.
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.
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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 CPPE said.