Textile import ban threatens N17tn fashion, furniture value chains, jeopardises 10m jobs – CPPE

…urges senate to ditch import ban for competitiveness reforms

The Centre for the Promotion of Private Enterprise (CPPE) has cautioned that the Senate’s proposal to ban textile fabric imports could disrupt Nigeria’s N17 trillion fashion and furniture value chains, threaten the livelihoods of about 10 million people and ultimately fail to revive the country’s struggling textile industry.

In a statement on Sunday, Muda Yusuf, chief executive officer of CPPE, urged lawmakers to abandon import restrictions in favour of reforms that address the structural challenges undermining the competitiveness of local textile manufacturers.

The Senate had recently called for a ban on textile imports as part of efforts to revive Nigeria’s once-thriving textile industry. However, Yusuf argued that while the objective is commendable, an outright import prohibition would likely inflict broader economic damage by disrupting supply chains, increasing production costs and weakening industries that depend on imported textile fabrics.

“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,” Yusuf said

He added that effective industrial policy should tackle the underlying constraints to competitiveness rather than merely restrict imports.

According to the CPPE, Nigeria’s fashion, garment-making and tailoring industry, valued at about N10 trillion, supports an estimated 10 million livelihoods and remains one of the country’s most vibrant creative economy sectors.

The organisation noted that textile fabrics are essential intermediate inputs for the industry and warned that restricting imports would reduce consumer choice, increase costs for businesses and threaten thousands of micro, small and medium-sized enterprises operating across the value chain.

Beyond fashion, Yusuf said Nigeria’s furniture and interior design industry, estimated at N7 trillion also relies heavily on textile materials for upholstered furniture, office furniture, hotel furnishings and mattresses. Any disruption in fabric supply, it warned, would increase production costs and reduce the sector’s competitiveness.

Yusuf maintained that the decline of Nigeria’s textile industry stems primarily from longstanding structural bottlenecks rather than import competition.

He identified high energy costs, poor infrastructure, expensive credit, logistics challenges, obsolete production technology, smuggling, weak access to long-term finance and inconsistent government policies as the key factors driving the industry’s decline.

According to him, imported textile fabrics already attract combined import duties and Import Adjustment Tax of between 35 and 45 percent, yet these tariff protections have failed to restore the sector’s competitiveness because the core challenge lies in the high cost of production.

“Textile manufacturing is one of the most energy-intensive industries globally. Operating within a high-cost production environment has severely undermined the competitiveness of local manufacturers.

“It is noteworthy that imported textile fabrics already attract combined Import Duty and Import Adjustment Tax (IAT) of between 35 and 45 percent. Yet these tariff protections have not restored the industry’s competitiveness because the core problem lies in production economics rather than import penetration.

“An import ban proposition addresses the symptom while leaving the underlying causes unresolved. Sustainable industry revival requires lower production costs, improved productivity and stronger enforcement of the existing tariff regime,” he said

The CPPE also argued that local textile manufacturers currently lack the capacity to meet the quantity, quality and diversity of fabrics demanded by Nigeria’s garment, fashion, furniture and interior design industries.

It warned that imposing an import ban under such circumstances would create supply shortages and hurt downstream industries that collectively employ significantly more Nigerians than textile manufacturing itself.

Instead of prohibiting imports, the organisation recommended a comprehensive value-chain strategy to revive the industry.

Among its proposals are mandatory government patronage of locally produced textiles and garments for military, paramilitary agencies and schools, the establishment of a Textile Competitiveness Fund financed from textile-related import taxes, renewed investment in cotton production, stronger border enforcement to curb smuggling and reforms aimed at reducing energy costs, improving infrastructure and expanding access to affordable long-term finance.

Yusuf said reviving domestic cotton production through improved seedlings, mechanisation, extension services, enhanced security and guaranteed off-take arrangements would also strengthen the industry’s raw material base.

He advised that Nigeria’s textile industry would achieve sustainable growth only through policies that improve competitiveness and productivity rather than blanket import restrictions.

“A successful revival strategy should focus on reducing production costs, modernising manufacturing, restoring cotton production and leveraging government procurement to stimulate demand for locally made textiles,” he said.