Nigeria can earn bigger forex from over $272bn global leather industry

Business News


“Nigeria can earn bigger foreign exchange from the global leather industry currently peaking at over $272 billion out of which the country’s share stands at between $600 million to $800 million through export annually.”

Bello Abba Yakasai, Managing Director, Bay Enterprises Limited, expressed this possibility during Manufacturers Association of Nigeria Stakeholders Roundtable session held in Kano State.
In his presentation, ‘Leveraging on Nigeria-China Economic Relations to Re-industrialize the Economy – A Case for Leather Industry,’ he disclosed that the global production of finished leather products stands at $272.5 billion.

He gave the breakdown of the figure as follows: “Footwear tops by $150 billion or 55%, closting is next by $31 billion or 11.4%; Leather goods follows , accounting for $25 billion or 9 %, vehicle upholstery 7% or $19 billion while gloves 4.4% or $12 billion.

”He said: “Nigerian leather Industry generate between $600m to $800m through export annually. Nigeria is tanning and exporting between 40m to 50m skins annually, and the Minister of Science and Technology, said Nigerian leather industry could be worth about $900m in export in the coming years with potential to employing about a million people (direct and indirect – FTE).”

Value of export of leather from Nigeria

In 2017, Hide and Skins export to China stands between USD6 – 8.5m {World Integrated Trade Solution (WITS)} and Comtrade}
Value import of leather products and Leather subtitles from china

Footwear 300m pairs annually (industry estimate}
Value at an (average N2000/pair} – USD1.7b
Other products up to 20m pieces valued at over USD600m

On ways to improve the country’s leather industry, he said that instead of exporting leather from Nigeria, China/Nigeria should invest into further processing of the products.
He said that this will result in more growth, employment, training of Nigerian artisanal processors of leather and leather products.

“It will enhance the growth of MSMEs, encourage export of finished leather products and this will earn Nigeria bigger foreign exchange from the industry,” he said.

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