Key points
- The Centre for the Promotion of Private Enterprise (CPPE) has cautioned against the Senate’s proposal to ban textile imports for five years.
- CPPE says the move could disrupt key industries, threaten millions of jobs and fail to revive the local textile sector.
- The organisation argues that Nigeria’s textile industry’s decline is driven by structural challenges rather than import competition.
- It recommends improving local competitiveness through financing, infrastructure, technology and support for cotton production.
- The Senate says the proposed ban is intended to protect domestic cotton farmers and textile manufacturers.
Main story
The Centre for the Promotion of Private Enterprise (CPPE) has warned that the Senate’s proposed five-year ban on textile imports could create significant economic disruptions without addressing the underlying problems facing Nigeria’s textile industry.
The Chief Executive Officer of CPPE, Dr Muda Yusuf, gave the warning in a statement issued in Lagos while reacting to the Senate’s resolution urging the Federal Government to prohibit textile fabric imports for an initial period of five years.
The proposed ban, sponsored by Sen. Sunday Katung, is intended to create a protected market for domestic cotton farmers and local textile mills to expand production.
However, Yusuf argued that while reviving Nigeria’s textile industry was a worthy objective, an outright import ban would likely create more economic challenges than benefits.
According to him, the sector’s decline has been driven primarily by structural issues, including high energy costs, poor infrastructure, expensive financing, obsolete technology, logistics bottlenecks, smuggling and policy inconsistency rather than import competition.
He warned that restricting textile imports would disrupt Nigeria’s fashion, garment, tailoring, furniture and interior design industries, all of which depend heavily on imported fabrics as production inputs.
Yusuf said Nigeria’s fashion, garment-making and tailoring industry, valued at about N10 trillion, supports an estimated 10 million livelihoods and generates substantial domestic value through design, tailoring, branding, embroidery, merchandising and retailing.
“Restricting textile imports would increase production costs, reduce consumer choice and threaten thousands of micro, small and medium enterprises engaged in fashion, tailoring and garment manufacturing,” he said.
He added that the furniture and interior design industry, valued at about N7 trillion, also relies on imported textile materials, warning that supply disruptions would weaken manufacturers’ competitiveness.
Yusuf noted that imported textile fabrics already attract combined Import Duty and Import Adjustment Tax of between 35 per cent and 45 per cent, yet the existing tariff protection has not restored the competitiveness of local textile producers.
“The core problem lies in production economics rather than import penetration. An import ban addresses the symptom while leaving the underlying causes unresolved,” he said.
He also argued that domestic textile manufacturers currently lack the capacity to meet the quantity, quality and variety of fabrics required by downstream industries.
Instead of imposing an import ban, Yusuf advocated a comprehensive value-chain strategy that includes reviving domestic cotton production through improved security, mechanisation, better seedlings and guaranteed off-take arrangements.
He also called for affordable long-term financing, access to modern production technology, reliable electricity, stronger border enforcement against smuggling and the establishment of a Textile Competitiveness Fund financed through textile-related import tax revenues.
In addition, he urged the government to prioritise locally produced textiles and garments for uniforms used by the military, paramilitary agencies, schools and other public institutions.
The issues
Nigeria’s textile industry has struggled for decades due to high production costs, weak infrastructure, smuggling and inconsistent policies. While import restrictions could provide temporary protection for local manufacturers, industry experts warn that without addressing structural constraints, such measures may increase costs for downstream industries, encourage smuggling and weaken sectors that employ millions of Nigerians.
What’s being said
“Restricting textile imports would increase production costs, reduce consumer choice and threaten thousands of micro, small and medium enterprises engaged in fashion, tailoring and garment manufacturing.” — Dr Muda Yusuf
“The core problem lies in production economics rather than import penetration. An import ban addresses the symptom while leaving the underlying causes unresolved.” — Dr Muda Yusuf
What’s next
The Federal Government will decide whether to act on the Senate’s recommendation. Meanwhile, industry stakeholders are expected to continue debating whether protecting local manufacturers through import restrictions or improving competitiveness through structural reforms offers a more sustainable path to reviving Nigeria’s textile industry.
Bottom line
CPPE says reviving Nigeria’s textile sector requires addressing structural weaknesses rather than imposing an import ban that could disrupt larger downstream industries and threaten millions of jobs.
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