CPPE Opposes Senate's Proposed Textile Import Ban
The Centre for the Promotion of Private Enterprise (CPPE) has cautioned that the Nigerian Senate's call to ban textile fabric imports could jeopardize approximately 10 million jobs and severely damage the country's N10 trillion fashion and garment industry. In a statement released on Sunday, CPPE Chief Executive Officer Muda Yusuf argued that while revitalizing the local textile sector is important, an outright ban would create significant economic hardships.
Impact on Fashion and Related Industries
The CPPE highlighted that the fashion, tailoring, and garment industries are heavily dependent on imported textile fabrics. The Nigerian fashion sector, valued at an estimated N10 trillion, directly or indirectly supports millions of livelihoods. Additionally, the furniture and interior decoration industries, worth nearly N7 trillion, rely on textile materials. According to the CPPE, "Restricting textile imports would drive up production cost, limit choices of products available for the consumers, and put extra pressure on thousands of MSMEs involved in the fashion and garment-making processes."
Root Causes of Textile Sector Decline
The CPPE attributed the decline of Nigeria's textile sector to structural issues rather than imports alone. These include high energy and financing costs, inadequate infrastructure, logistics challenges, outdated technology, smuggling, and inconsistent policies. The group noted that imported textile fabrics already face duties and taxes ranging from 35% to 45%, yet these measures have failed to enhance competitiveness because the fundamental problem is high operational costs. Local manufacturers lack the scale, technical capability, product quality, and variety needed by the growing fashion and interior decor sectors.
Recommendations for Sustainable Revival
Instead of an import ban, the CPPE proposed a comprehensive value-chain approach focused on competitiveness reforms. Recommendations include mandating the use of local textiles for uniforms by the military, paramilitary, schools, and other institutions; establishing a textile competitiveness fund financed by duties on imported fabrics to support technological upgrades and modernization; revamping cotton production through new crop species, mechanization, and improved extension services; strengthening border patrols to curb smuggling; and reducing energy costs and improving infrastructure to lower logistics expenses.
The CPPE concluded: "The sustainable development and renewal of Nigeria's textile industry should be an all-inclusive value-chain initiative driven by efficiency, productivity and competitiveness in terms of quality and price, not by exclusion of inputs which the domestic sector cannot sufficiently provide for the time being."
