Nigeria’s textile sector is likely to suffer more from a proposed Senate-backed import ban than it would gain from any protection, the Centre for the Promotion of Private Enterprises has warned, arguing that the policy targets symptoms while leaving deeper structural issues untouched.
Key takeaways
- The Centre for the Promotion of Private Enterprises (CPPE) says the Senate’s textile import ban is more harmful than beneficial for Nigeria’s economy.
- CPPE estimates the textile industry is worth about N7 trillion and supports roughly 10 million jobs.
- The group argues the sector’s main problem is competitiveness, not import penetration.
- CPPE says the ban could raise production costs through supply disruptions, weakening the industry’s ability to compete.
- It calls for structural reforms, including cheaper energy, better infrastructure and logistics, improved finance access, and stronger domestic cotton production.
CPPE challenges the rationale for the import ban
In a statement issued on Sunday, CPPE’s chief executive director, Dr Muda Yusuf, criticised a recent Senate resolution that would impose a ban on textile imports. He said the move could undermine employment and damage the industry at a time when policymakers are aiming to revive local manufacturing.
The Senate adopted the resolution on June 9, 2026, with the stated goal of reviving Nigeria’s textile industry. The action followed the adoption of a motion introduced by Senator Sunday Katung, who represents Kaduna South, titled “urgent need to revive the textile industries in Nigeria with particular reference to the Kaduna-Kano Axis”.
Despite the intent to strengthen domestic production, CPPE said the ban carries a serious risk to a sector it values at around N7 trillion. The group also estimates that the textile industry employs about 10 million people, meaning any disruption could reverberate across livelihoods tied to manufacturing and related activities.
Underlying constraints, not imports, are the bigger issue
CPPE argued that the import ban approach addresses the symptoms of the sector’s challenges without solving the root causes. Yusuf said the real obstacles facing Nigeria’s textile industry stem mainly from structural constraints rather than from competition posed by imported goods.
Among the factors CPPE highlighted were high energy costs, expensive credit, inadequate infrastructure, logistics bottlenecks, obsolete technology, smuggling, limited access to long-term finance, and policy inconsistency. In CPPE’s view, these issues weaken productivity and raise the cost base for local producers—conditions that an import restriction alone cannot fix.
The group warned that reduced availability of inputs linked to imports could increase production costs further, eroding the sector’s competitiveness. CPPE also framed the central problem as one of competitiveness rather than import penetration, suggesting that protectionist measures may not translate into sustainable industrial revival.
For CPPE, lasting improvement would require structural reforms aimed at lowering costs and boosting output. It specifically called for steps to improve productivity, reduce manufacturing expenses, revive cotton production, expand access to affordable finance, and use government procurement to stimulate domestic demand.
