CPPE: Senate’s proposed textile import ban could hurt fashion industry, threaten 10m jobs

THE Centre for the Promotion of Private Enterprise (CPPE) has cautioned that the Senate’s resolution seeking to ban textile fabric imports could inflict significant damage on Nigeria’s economy, warning that the measure may undermine industries that employ millions of people rather than revive local textile manufacturing.

In a statement issued on Saturday, CPPE Chief Executive Officer, Dr. Muda Yusuf, said although the goal of revitalising Nigeria’s struggling textile industry is commendable, an outright import ban would fail to address the sector’s underlying challenges while disrupting key value chains across the economy.

According to the economic think tank, Nigeria’s fashion, garment-making and tailoring industry, estimated to be worth about N10 trillion, supports roughly 10 million livelihoods and relies heavily on imported textile fabrics as production inputs.

CPPE warned that restricting textile imports would increase production costs, reduce consumer choice and threaten thousands of micro, small and medium-sized enterprises (MSMEs) engaged in tailoring, fashion design and garment manufacturing.

The organisation also noted that textile fabrics are essential inputs for Nigeria’s furniture and interior design industry, valued at an estimated N7 trillion, where they are widely used in upholstered furniture, office furnishings, hotel interiors and mattresses. It said any disruption in supply would weaken the competitiveness of the sector by driving up production costs.

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The economic policy group argued that the decline of Nigeria’s textile industry stems largely from structural constraints, including high energy costs, expensive financing, poor infrastructure, obsolete technology, logistics bottlenecks, smuggling and inconsistent government policies, rather than import competition alone.

It observed that imported textile fabrics already attract combined import duty and Import Adjustment Tax of between 35 and 45 percent, yet these protections have not restored the industry’s competitiveness because manufacturers continue to grapple with high production costs.

CPPE further stated that local 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.

The group maintained that an outright import ban would therefore create supply shortages and increase costs for downstream industries that generate significantly more employment than textile manufacturing itself.

Rather than imposing trade restrictions, CPPE urged the government to adopt a comprehensive value-chain strategy focused on reviving cotton production, improving access to affordable long-term financing, modernising production technology, reducing energy costs and strengthening industrial competitiveness.

Among its recommendations, the organisation called for government agencies, including the military, paramilitary organisations and schools, to prioritise locally produced textiles and garments for uniforms. It also proposed the establishment of a Textile Competitiveness Fund financed with part of textile-related import tax revenues to support technology upgrades and industry modernisation.

The think tank also advocated stronger border enforcement to curb smuggling, increased support for cotton farmers through improved seedlings, mechanisation and guaranteed off-take arrangements, as well as broader reforms to lower production costs and improve the business environment.

CPPE concluded that reviving Nigeria’s textile industry would require structural reforms that enhance productivity and competitiveness rather than an import prohibition that could inadvertently weaken the country’s broader manufacturing and creative economy.

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“The proposed textile import ban risks undermining a vibrant garment and fashion ecosystem that supports millions of Nigerians while generating substantial domestic value addition. It could also adversely affect the furniture industry, encourage smuggling and reduce customs revenue,” it said.

“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.”