The Centre for the Promotion of Private Enterprise (CPPE) has cautioned that a proposed ban on textile imports could have far-reaching consequences for Nigeria’s fashion and garment industry, warning that millions of jobs and businesses that depend on imported fabrics could be placed at risk.

The economic policy think tank said while the Federal Government’s desire to revive the country’s once-thriving textile manufacturing sector is understandable, imposing an outright ban on imported textiles without first strengthening domestic production could disrupt one of Nigeria’s fastest-growing creative industries.

In a statement issued by its Chief Executive Officer, Dr. Muda Yusuf, the CPPE noted that Nigeria’s fashion ecosystem—which includes fashion designers, tailors, garment manufacturers, fabric merchants, textile retailers, embroiderers, dry cleaners, fashion schools and other players across the value chain—has evolved into a multi-trillion-naira industry that supports an estimated 10 million direct and indirect jobs nationwide.

According to the organisation, the sector contributes about ₦10 trillion annually to the Nigerian economy and remains a major source of employment for young people, women and micro, small and medium-sized enterprises (MSMEs).

The CPPE warned that many of the fabrics currently used by local fashion entrepreneurs are imported because they are either unavailable or insufficiently produced in Nigeria. Restricting access to these materials, it argued, could trigger supply shortages, force up production costs and reduce the competitiveness of locally made clothing.

The group further stated that businesses may be compelled to pass the higher costs on to consumers, making clothing and other textile products more expensive at a time when many Nigerians are already grappling with inflation and declining purchasing power.

Beyond the fashion industry, the CPPE stressed that textiles serve as essential raw materials for several other sectors of the economy, including furniture manufacturing, interior decoration, hospitality, healthcare and automotive upholstery. It warned that an import prohibition could therefore have ripple effects across multiple industries that rely on specialised fabrics unavailable in sufficient quantities locally.

While acknowledging the urgent need to revive Nigeria’s textile manufacturing industry, the organisation maintained that the solution lies in addressing the structural challenges that have weakened the sector over the years rather than restricting imports.

It identified poor electricity supply, high production costs, limited access to affordable finance, outdated machinery, insecurity in cotton-producing communities and widespread smuggling as some of the major obstacles preventing local textile manufacturers from competing effectively with imported products.

To reverse the decline, the CPPE proposed the establishment of a dedicated Textile Competitiveness Fund to provide manufacturers with low-interest financing for factory expansion, equipment modernisation and technological upgrades.

The group also called for renewed investment in cotton farming through the distribution of improved seedlings, mechanised agriculture, better extension services, irrigation projects and guaranteed off-take arrangements that would encourage farmers to increase production.

It further urged the government to improve transport infrastructure, reduce energy costs for manufacturers, strengthen border surveillance to curb textile smuggling and introduce policies that encourage local production without disrupting businesses that depend on imported inputs.

According to the CPPE, rebuilding Nigeria’s textile industry requires a comprehensive value-chain approach that simultaneously supports cotton farmers, textile mills, garment manufacturers and fashion entrepreneurs, rather than policies that may inadvertently weaken downstream industries.

The warning comes amid ongoing discussions over a proposal to prohibit textile imports as part of efforts to revive local manufacturing and reduce dependence on foreign goods. While proponents argue that the measure would stimulate domestic production, the CPPE believes a gradual, incentive-driven strategy would be more effective than an outright ban.

The organisation concluded that Nigeria’s textile industry can regain its former prominence, but only through sustained investment, improved competitiveness and policies that balance industrial growth with the realities of businesses operating within the country’s broader fashion and manufacturing ecosystem.