Nigeria’s Vice President, Prof. Yemi Osinbajo has launched the National Leather and Leather Products Policy Implementation plan, declaring that the Nigerian leather industry could become one of the major items in the country’s export basket.
Prof. Osinbajo launched the plan and declared open the sensitization workshop on the policy on Tuesday at the Shehu Musa Yar’ Adua Centre, Abuja, where there was also an exhibition of some Nigerian-made leather products.
The Federal Executive Council had, in October 2018, approved the National Leather and Leather Products Implementation Policy, which led to the design of the strategic implementation plan.
Vice President Osinbajo said at the launch of the plan that the Nigerian leather chain, which includes animal husbandry, tanneries, finished leather products and leather products marketing is extensive.
He said that the industry employs over 750,000 workers, with about 500, 000 workers in the finished leather goods products.
“About eleven leather exporting companies have been active at the upstream end of the leather value chain.
“Together, these companies generate about 8000 jobs. And the export of leather has grown steadily, reaching a peak of $117m in 2018 but fell in 2020 largely due to the pandemic.
“However to date, exports are in the order of $272m. Today Nigeria’s semi-finished and finished leather have their highest patronage in Italy, Spain, India, South Asia and China.
“Shoes, belts, bags and folders are largely traded in West Africa and the rest of Africa.”
Osinbajo said that evidence suggests that the famous Aba shoe cluster in Abia State, informally exports almost a million pairs of shoes weekly mostly to destinations within Africa.
“The industry is huge, and it’s potential can only be imagined,” he stated, adding “there is no question that properly organised, the leather and leather products industry could become one of the major items in Nigeria’s export basket.”
Enormous potential
According to Vice President Osinbajo the Nigerian leather and leather products industry has an enormous potential for even greater job opportunities and much higher export proceeds.
He noted that the Nigeria Economic Summit Group projected that the Nigerian leather industry has the potential to increase its earnings by 70% and generate over US$1 billion by 2025.
“This explains why the launch of the National Leather and Leather Products Policy Implementation Plan is such an exciting development.
“We now have a real opportunity to address the specific challenges and shortcomings of the leather sector with pragmatic strategies to permanently resolve these issues for optimal productivity.
“In particular there is now a clear line of sight to our emergence as a major hub for the manufacture of leather goods with the refocusing of the leather sector to value addition from its previous focus on exporting semi-processed leather.”
Access to credit
Pointing out that a major part of the plan is the improvement of access to credit for leather products manufacturers, the Vice President stated that the plan provides an opportunity to develop a credit guarantee scheme along the lines of the successful agricultural credit guarantee scheme.
“More intentional infrastructure development is also now possible. Our SEZ (Special Economic Zones) project already projects leather products manufacturing as a major focus, synergy and collaboration with NEPZA is all that is required now.
“By optimizing the value chain, the sector will provide employment, improve our foreign exchange earnings and boost growth. Consequently, it is evident that in terms of what we have set out to do through the policy and the implementation plan, the stakes are very high.”
Thematic areas
He said that the plan covers eight thematic areas, including intellectual property rights, governance, E-leather, environmental and social best practices, marketing, funding, critical infrastructure and research and development.
“The plan is as all encompassing as it is detailed. Relevant MDAs, NGOs and the organized private sector are assigned specific responsibilities for the various objectives, and strategies of the plan.
“A central feature of the plan is the development of technical capacity in leather works and technology.
“The Nigerian Institute of Leather Science and Technology (NILEST), the arrowhead of the plan, has established nine extension centres across the six geo-political zones of Nigeria.”
Right thing at right time
Delivering the keynote address, Nigeria’s Minister of Science and Technology, Dr. Ogbonnaya Onu said that the launch of the plan was the right thing at the right time now that the administration of President Muhammadu Buhari is vigorously promoting local content in all socio-economic activities and diversification of the Nigerian economy.
Onu said that the Ministry of Science and Technology would support the initiative through offering leadership in the transformation of the Nigerian economy from a resource-based to a knowledge-based economy that is innovation-driven.
“This will help the effective and efficient exploitation of our natural resources, earn and as well as conserve foreign exchange, create jobs and wealth and make our dear country self-reliant,” he said.
In her remarks, the Chairman of the Senate Committee on Science and Technology, Uche Ekwunife said that the National Assembly would ensure that the policy is fully implemented for the growth of the leather sector and the diversification of the economy.
Emmanuel Ukoh
