Economic think tank argues proposed restriction could hurt the fashion and furniture industries, increase smuggling, and fail to revive local textile production…..
The Centre for the Promotion of Private Enterprise (CPPE) has urged the Senate to reconsider its proposal to ban the importation of textile fabrics, warning that such a move could disrupt major sectors of the Nigerian economy and threaten the livelihoods of millions of people.
In a statement signed by its Chief Executive Officer, Dr. Muda Yusuf, the economic policy advocacy group argued that while reviving Nigeria’s textile industry is a worthy objective, imposing an outright import ban would likely create more problems than it solves.
According to the CPPE, the country’s garment, tailoring, fashion and furniture industries depend heavily on imported textile materials, and restricting access to those inputs could trigger higher production costs, supply shortages and widespread job losses.
The organisation estimated that Nigeria’s fashion and garment industry is worth about ₦10 trillion and supports roughly 10 million Nigerians, making it one of the country’s largest employers within the creative economy.
It noted that textile fabrics serve as critical raw materials for designers, tailors, garment manufacturers and other businesses that generate far more employment than the textile manufacturing sector itself.
“The proposed ban reflects a narrow understanding of the textile industry’s challenges and ignores the wider value chain that depends on fabric imports,” the statement said.
Beyond fashion, the CPPE warned that Nigeria’s furniture and interior design industry estimated to be worth about ₦7 trillion could also face rising production costs because textile materials are widely used in upholstery, office furniture, hotel furnishings and mattress production.
According to the think tank, the real challenge confronting Nigeria’s textile manufacturers is not import competition but the country’s difficult production environment.
It identified high energy costs, poor infrastructure, expensive financing, obsolete technology, logistics bottlenecks, policy inconsistency and widespread smuggling as the major factors responsible for the industry’s decline.
The organisation also pointed out that imported textile fabrics already attract combined Import Duty and Import Adjustment Tax (IAT) of between 35 and 45 per cent, arguing that existing trade protection has failed to revive the sector because local manufacturers still struggle with high operating costs.
Rather than banning imports, the CPPE maintained that government efforts should focus on improving the competitiveness of domestic producers.
The group also warned that local textile mills currently lack the capacity to meet the quantity, quality and variety of fabrics required by manufacturers across Nigeria, making an immediate import ban impractical.
It cautioned that restricting imports under current conditions would likely create shortages, increase prices for consumers and weaken downstream industries that employ significantly more Nigerians.
To revive the sector sustainably, the CPPE called for a comprehensive value-chain strategy beginning with the restoration of cotton production across the country.
The organisation said improving security in farming communities, providing better seedlings, expanding mechanisation, strengthening extension services and guaranteeing markets for cotton farmers would help rebuild the industry’s raw material base.
It also urged the government to establish a dedicated Textile Competitiveness Fund financed partly from textile import taxes to provide manufacturers with affordable single-digit loans for factory modernisation and technology upgrades.
Other recommendations included expanding government patronage of locally made textiles by requiring military, paramilitary agencies, schools and other public institutions to source uniforms from domestic producers, strengthening border controls to combat smuggling, reducing energy costs and improving access to long-term finance.
According to the CPPE, these structural reforms would deliver more sustainable results than import restrictions.
The group concluded that while the Senate’s objective of revitalising local textile manufacturing is commendable, banning textile imports could weaken industries that currently create millions of jobs, reduce customs revenue and encourage smuggling without addressing the underlying problems affecting local production.
“The challenge confronting Nigeria’s textile industry is fundamentally one of competitiveness rather than import penetration,” the statement concluded, adding that meaningful reform should focus on lowering production costs, boosting productivity and rebuilding the entire textile value chain instead of relying on restrictive trade policies.
