LAGOS - The Center for Advancing Private Business (CPPE) has raised concerns regarding the Senate's decision advocating for an import restriction on textile fabrics.
A statement released by Dr. Muda Yusuf, the Centre’s Executive Director, noted that the suggested action is improbable to meet its desired goals and might lead to serious negative effects on Nigeria's economy. It further mentioned that instead of boosting the textile sector, the planned restriction could result in considerable additional expenses for related industries, interfere with essential supply networks, and put millions of employment opportunities and living standards at risk.
The report stated that the sector is valued at approximately ₦10 trillion, noting that the industry supports the lives of around ten million Nigerians and stands as one of the nation's most dynamic components of the creative economy.
As per the center, fabric materials play an essential role as intermediary components within this system, noting that limiting imports could hinder manufacturing processes, raise expenses, limit options for consumers, and endanger numerous micro, small, and medium-sized businesses involved in clothing, sewing, and apparel creation.
CPPE stated that interruptions in supplies would lead to higher manufacturing expenses and reduce the industry's competitive edge.
A proposal for an import restriction tackles the visible issue but fails to address the root problems. For lasting recovery in the industry, it is necessary to reduce manufacturing expenses, enhance efficiency, and enforce current customs regulations more effectively.
Local textile producers today do not have the ability to fulfill the volume, standard, and variety of fabrics needed by Nigeria's fashion, clothing, home decor, and furnishings sectors. Even during the height of the textile industry's success, domestic factories failed to provide all types of textiles requested by the market.
"An absolute restriction on imports would consequently lead to scarcity of supplies, raise manufacturing expenses, and harm subsequent industries which provide far greater job opportunities compared to the textile sector," CPPE mentioned.
It suggested that bringing back the textile sector needs an all-encompassing supply chain strategy instead of limiting trade policies, emphasizing that attention must first focus on revitalizing local cotton farming, which traditionally provided the industry with its basic resources.
It mentioned that textile producers also need access to cost-effective long-term funding, advanced technology, stable power supply, and a more favorable business climate.
It suggested a Strategic Government Procurement policy, mandating that military, paramilitary organizations, educational institutions, and other government bodies should give preference to domestically manufactured fabrics and clothing for their attire.
It also proposed the creation of a Textile Competitiveness Fund, which would involve directing a portion of textile-related import tax revenues into a specific fund offering low-interest financing for technological upgrades and industrial modernization.
The center advocated for the resurgence of cotton farming and assistance to cotton growers via better seeds, machinery, advisory programs, safety measures, and assured purchase agreements.
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