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LAGOS – The Centre for the Promotion of Private Enterprise (CPPE) has expressed reservations about the Senate’s resolution calling for a ban on textile fabric imports.
A release signed by Dr Muda Yusuf, Executive Director of the centre, said that the proposed measure is unlikely to achieve its intended objectives and could have significant adverse consequences for the Nigerian economy, adding that 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.
It said the sector is valued conservatively at about ₦10 trillion, adding that the industry provides livelihoods for an estimated ten million Nigerians and is one of the country’s most vibrant creative economy sectors.
According to the centre, textile fabrics are critical intermediate inputs for this ecosystem, stating that restricting imports would disrupt production, increase costs, reduce consumer choice and threaten thousands of micro, small and medium enterprises engaged in fashion, tailoring and garment manufacturing.
CPPE argued that supply disruption would increase production costs and weaken the competitiveness of the sector.
“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.
“Domestic textile manufacturers currently lack the capacity to meet the quantity, quality and diversity of fabrics required by Nigeria’s fashion, garment, interior design, and furniture industries. Even at the peak of the textile industry’s performance, local mills did not supply the full range of fabrics demanded by the market.
“An outright import ban would, therefore, create supply shortages, increase production costs and weaken downstream industries that generate significantly more employment than textile manufacturing itself,” CPPE stated.
It posited that reviving the textile industry requires a comprehensive value-chain approach rather than restrictive trade measures, adding that priority should be given to restoring domestic cotton production, which historically supplied the industry’s raw materials.
It said that textile manufacturers also require access to affordable long-term finance, modern technology, reliable energy and a more competitive operating environment.
It recommended a Strategic Government Procurement policy, which will require military, paramilitary agencies, schools and other public institutions to prioritise locally produced textiles and garments for their uniforms.
It also called for the establishment of a Textile Competitiveness Fund which will include channeling part of textile-related import tax revenues into a dedicated fund providing single-digit financing for technology upgrading and industry modernisation.
The centre called for revival of cotton production and support for cotton farmers through improved seedlings, mechanisation, extension services, security and guaranteed off-take arrangements.
