Outright ban on textile importation will eliminate millions of jobs — CPPE

The Centre for the Promotion of Private Enterprise (CPPE) has opined that an outright ban on textile importation will eliminate millions of jobs.

In a statement on Sunday, Dr Muda Yusuf, the CEO of CPPE said the proposed ban is unlikely to achieve its intended objectives and could have significant adverse consequences for the Nigerian economy.

He explained that while the objective of reviving Nigeria’s textile industry is legitimate and commendable, an outright import prohibition is unlikely to achieve that objective.

“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,” he said.

He also raised alarm that the outright ban threatens Nigeria’s fashion, garment-making and tailoring industry valued at about ₦10 trillion.

“It is noteworthy that imported textile fabrics already attract combined Import Duty and Import Adjustment Tax (IAT) of between 35 and 45 percent. Yet these tariff protections have not restored the industry’s competitiveness because the core problem lies in production economics rather than import penetration.”

“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,” he said.

He further decried that the current 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.

He urged the federal government to instead prioritise restoring domestic cotton production, which historically supplied the industry’s raw materials.

He also advised the government to channel part of textile-related import tax revenues into a dedicated fund providing single-digit financing for technology upgrading and industry modernisation.