Textile Import Ban Threatens ₦17trn Industry, 10m Jobs – CPPE
The Centre for the Promotion of Private Enterprise (CPPE) has warned that the Senate’s call for a ban on textile imports could undermine industries worth an estimated ₦17 trillion and threaten millions of jobs.
The Senate had urged the Federal Government to impose an outright ban on foreign textile fabrics to revive Nigeria’s struggling textile industry and stimulate cotton production, particularly along the Kaduna-Kano industrial corridor.
While commending the intent, CPPE Chief Executive Dr. Muda Yusuf said the measure would harm downstream sectors.
“The proposed measure is unlikely to achieve its intended objectives and could have significant adverse consequences for the Nigerian economy,” he noted.
Nigeria’s fashion, garment-making, and tailoring industry alone is valued at about ₦10 trillion, employing nearly 10 million Nigerians.
Yusuf stressed that imported fabrics are critical inputs, and restricting them would raise costs, reduce consumer choice, and disrupt thousands of MSMEs.
He added that fabrics are also indispensable to the furniture and interior design industry, estimated at ₦7 trillion, which relies heavily on textiles for upholstery, office furniture, hotel furnishings, and mattresses.
Yusuf argued that the decline of Nigeria’s textile manufacturing stems from structural challenges such as high energy costs, expensive credit, poor infrastructure, smuggling, and obsolete technology—not import penetration.
“An import ban addresses the symptom while leaving the underlying causes unresolved,” he said.
He noted that imported fabrics already attract duties and taxes of 35–45%, yet local manufacturers remain uncompetitive due to production economics.
Domestic producers also lack the capacity to meet the quantity, quality, and variety demanded by downstream industries.
Instead of bans, CPPE urged reforms to improve competitiveness: reviving cotton production, lowering energy costs, modernising technology, strengthening border enforcement, expanding access to affordable finance, and leveraging government procurement to support local manufacturers.