Industry Experts Warn Against Textile Import Ban Impact on Jobs

The Nigerian Senate has suggested a five-year ban on the importation of textile textiles, and alarm bells are ringing among industry players. The Centre for the Promotion of Private Enterprise (CPPE) warned that the prohibition might have a devastating impact on the textile industry and threaten many jobs. “The major obstacles facing the textile business are structural problems like high energy cost and poor infrastructure, not competition from foreign products,” said Mr Muda Yusuf, the CEO of CPPE.

The Nigerian fashion and apparel sector is an important part of the economy worth over N10 trillion and provides livelihoods for around 10 million people. This sector is strongly reliant on imported materials and a complete prohibition on importation might impair the manufacturing of many businesses including fashion, tailoring and furniture. The CPPE says import restrictions would raise production costs and reduce consumer choice, putting many micro, small and medium firms at risk of not surviving.

The Nigerian government has announced a new Industrial Policy targeting the issues of local industry, with the goal of bringing idle industries back to life and boosting local manufacturing capacity. The policy is directed towards local content and import substitution, with the objective of boosting the textile sector. But the particular measures to help the industry under this policy are still not defined and this raises doubts about the government’s commitment to building a sustainable manufacturing ecosystem.

CPPE has called for a holistic value-chain approach to reviving the textile industry, including increasing domestic cotton output and access to cheap finance. This method is considered crucial to reduce dependency on imports and enhance local manufacturing. The necessity for such policies has been underlined by several players including a presidential candidate, Peter Obi, who emphasised the need to move Nigeria from a consumption-driven economy to a production-led one.

Nigeria is poised to play a leading role in Africa’s economic revival, with the African Export-Import Bank (Afreximbank) forecasting a growth rate of 4.5% in 2025, driven mainly by industrial activity and rising oil production. The development potential warrants the revival of local manufacturing sectors such as textiles to properly utilise the country’s economic advantages.

There are uncertainties over how the proposed restriction on imports will be implemented and enforced. Stakeholders are keen to know how the expected impact on sectors dependent on imported fabric will be addressed, as well as the modalities of funding and support for the proposed Textile Competitiveness Fund. Also, it is important to know the actual reforms targeted at solving the problem of lack of access to funding by Nigerian enterprises for the manufacturing sector to thrive.