The Centre for the Promotion of Private Enterprise (CPPE) has cautioned that the Senate’s resolution calling for a ban on textile fabric imports could have far-reaching negative consequences for Nigeria’s economy, warning that the policy may do more harm than good.
In a statement signed by its Chief Executive Officer, Dr. Muda Yusuf, the private sector advocacy group said although the objective of reviving Nigeria’s textile industry is commendable, an outright ban on textile imports would fail to address the industry’s underlying challenges.
According to the CPPE, the proposed restriction could disrupt supply chains, increase production costs and threaten millions of jobs in downstream sectors such as fashion, garment making, tailoring, furniture manufacturing and interior design.
The organisation noted that Nigeria’s fashion, garment-making and tailoring industry, valued at an estimated ₦10 trillion, provides livelihoods for about 10 million Nigerians and depends heavily on imported textile fabrics as key production inputs.
It added that the country’s furniture and interior design industry, estimated to be worth about ₦7 trillion, also relies significantly on textile materials for upholstered furniture, office furniture, hotel furnishings and mattresses.
“The proposed ban reflects a narrow view of the textile industry’s challenges and overlooks the extensive linkages within Nigeria’s textile, garment, fashion, furniture and creative economy value chains,” the CPPE stated.
The organisation argued that the decline of Nigeria’s textile industry is largely attributable to structural challenges including high energy costs, expensive credit, poor infrastructure, obsolete technology, logistics bottlenecks, smuggling, inadequate access to long-term financing and inconsistent government policies.
It observed that imported textile fabrics are already subject to combined import duty and Import Adjustment Tax (IAT) of between 35 and 45 per cent, yet these protective tariffs have not restored the competitiveness of local textile manufacturers.
According to the CPPE, the real issue confronting the industry is production economics rather than import competition.
The group further warned that domestic textile manufacturers currently lack the capacity to meet the quantity, quality and variety of fabrics required by Nigeria’s fashion, garment and furniture industries, making an outright import ban likely to create shortages and increase production costs.
Rather than imposing import restrictions, the CPPE advocated a comprehensive value-chain strategy to revive the textile industry.
Among its recommendations are mandatory government patronage of locally produced textiles for military, paramilitary agencies, schools and other public institutions; establishment of a Textile Competitiveness Fund financed through textile-related import taxes; revitalisation of cotton production through improved support for farmers; stronger border enforcement to curb smuggling; and measures to reduce energy costs, improve infrastructure and provide affordable financing for manufacturers.
The organisation concluded that sustainable revival of Nigeria’s textile industry would require structural reforms aimed at improving competitiveness, lowering production costs, restoring cotton production and leveraging government procurement to stimulate local demand, rather than imposing an import ban.
The statement was signed by the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, and dated June 28, 2026.
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