A proposed ban on textile imports in Nigeria could jeopardize up to 10 million jobs, according to a stark warning from the Confederation of Petroleum and Petroleum Products Dealers (CPPE) and local manufacturers.
The industry group argues that the policy, intended to boost domestic production, lacks the necessary infrastructure and credit support to sustain the workforce currently dependent on the import supply chain.
9 trillion, exacerbating liquidity constraints for firms already struggling with high input costs.
The warning comes as financial conditions for the sector tighten significantly.
Manufacturers report that credit extended to the textile industry has fallen by N1.9 trillion, exacerbating liquidity constraints for firms already struggling with high input costs.
This contraction in lending limits the ability of local producers to scale operations or absorb the shock of disrupted supply lines.
Rising global oil prices have further squeezed margins for manufacturers reliant on imported raw materials, creating a compounding effect on profitability.