CPPE Critiques Senate’s Proposal to Ban Textile Imports
The Center for the Promotion of Private Enterprise (CPPE) has expressed serious concerns regarding a recent Senate resolution advocating for a ban on the importation of textile fabrics. The organization warns that such restrictions could have detrimental effects on Nigeria’s economy, disrupt supply chains, and jeopardize millions of jobs.
In a statement issued on Sunday by CPPE Chief Executive Officer Muda Yusuf, the think tank emphasized that while the motivation to revive Nigeria’s textile industry is commendable, an outright ban on imports will fail to resolve the underlying issues plaguing the sector.
On June 9, the Senate proposed a total ban on textile imports as part of broader efforts to support the struggling textile industry and promote job creation. Lawmakers argued that this measure was necessary to protect local manufacturers and stimulate domestic cotton production.
However, CPPE countered that the proposed ban would not lead to the intended revitalization of the textile sector, but rather impose significant collateral costs on downstream industries that rely on imported materials.
According to CPPE, the ban could result in substantial negative repercussions for the Nigerian economy. While the intention behind supporting the textile industry is legitimate, an outright import ban is unlikely to achieve this goal. Instead, it would disrupt vital supply chains, threaten millions of jobs, and increase production costs.
The think tank further noted that the proposed restrictions do not take into account the interconnectedness of textile manufacturing with Nigeria’s clothing, fashion, furniture, and creative economy value chains. This oversight reflects a narrow perspective on the challenges faced by the industry.
Estimates suggest that Nigeria’s fashion, garment, and tailoring industry is valued at approximately N10 trillion and supports around 10 million jobs, predominantly relying on imported textiles as essential raw materials. CPPE warned that restricting imports would lead to production disruptions, diminished consumer choices, and threaten the viability of thousands of micro, small, and medium-sized enterprises within the fashion and clothing sectors.
Structural Issues Plaguing the Textile Industry
CPPE pointed out that the decline of Nigeria’s textile industry is primarily attributable to structural constraints rather than import competition. High energy costs, inadequate financing options, poor infrastructure, logistics bottlenecks, and outdated technology are some of the persistent challenges that need to be addressed.
Current tariff protections, including import duties and an import adjustment tax (IAT) ranging from 35% to 45%, have failed to improve the sector’s competitiveness. CPPE highlighted that the core issue is production costs, not foreign import levels.
The organization also noted that domestic manufacturers currently lack the capability to meet the diverse and quality demands of Nigeria’s fashion, clothing, furniture, and interior design markets. A total ban on textile imports would likely exacerbate supply shortages, elevate production costs, and weaken downstream industries that contribute significantly to job creation.
Proposed Strategies for Industry Revival
Rather than imposing import bans, CPPE advocates for a comprehensive value chain strategy aimed at revitalizing the textile sector. This strategy would include strategic government procurement practices that prioritize locally produced textiles and uniform clothing within military, paramilitary, academic, and other public institutions.
Additionally, the think tank suggests establishing a Textile Competitiveness Fund to support technology upgrades and industrial modernization, funded by textile-related import tax revenues. Reviving domestic cotton production is another critical proposal, focusing on improved seed varieties, mechanization, and enhanced support for farmers.
Moreover, CPPE calls for stronger border enforcement measures to combat smuggling and bolster existing tariffs. Alongside these measures, reforms aimed at reducing energy costs, enhancing infrastructure, and lowering financing costs would create a more competitive environment for manufacturers.
Ultimately, the CPPE contends that enhancing competitiveness—rather than restricting imports—offers a more sustainable pathway to rejuvenate Nigeria’s textile industry. Long-term recovery will necessitate structural reforms that focus on productivity increases, cost reductions, and the harnessing of government procurement to stimulate domestic demand.
