Ayodele Olalere
The Nigeria leather sector has received boost following moves by stakeholders to invest $100million into the sector to drive local production and patronage of locally produced leather finished products.
At the National Leather Investment Summit, South West Edition held in Lagos on Thursday November 28 and organised by the National Steering Committee on Leather and Leather Products Policy Implementation Plan, Roseate Forte Nigeria Limited, Lagos State government and other different stakeholders, participants noted that establishing $100million national leather industrial processing and export zone is critical to the survival of the leather industry.
While speaking at the Summit, the Convener and Chief Executive Officer, CEO, Jordan 105.5 FM and Roseate Forte Limited, Lanre Johnson said the Nigeria leather sector is huge and have the potential to rival the oil industry as revenue generating sector for the government.
He added that the $100million leather zone will be located in Lagos and bring together all players in the sector, offers them the opportunity to market, sell and export locally made leather goods.
“The investment in the leather sector is to boost local production. It is geared towards providing a zone for all the stakeholders within Lagos and South West. We have partnered with NILEST which is the agency incharge of leather factory under the Federal Ministry of Science and Technology.
The idea is for us to see how we can begin to add value to leather. Currently what we are getting from the sector is below par and the potential of leather sector is more than able to rival oil,” he said.
He noted that Vietnam generates $23billion yearly from the leather sector and with the capacity of Nigeria, the should be able to double that figure.
“Our drive is to start this from the South West with Lagos in particular, to build a sector that can attain the projection of the $1trillion for the federal government
We started this journey three years ago with the ministry to get the policy right. We drafted the reform in the leather sector. We are going to secure a license to build a free trade zone in Lagos. We have received letter of support from Africa Development Bank. The location will be around Epe and Ikorodu . We are going to train 50,000 youths and there will be lots of research,” Lanre added.
In his contribution, the Director-General of the Nigerian Institute of Leather and Science Technology, NILEST, Dr. Mustapha Imam said the institute will come up with an implementation plan on how it will achieve sustaining the local producers of leather products.
“This summit has energized us to quickly put into action to see to the implementation of the policy. We have the potential to develop the sector to rival oil. With this summit we now have the confidence to approach the Presidency and advise that they should put a high tariff on leather importation so we can develop our own leather sector. We are going to come up with an implementation plan. We have all the instruments to fast track the renewed hope agenda of the President.
Igile Andrew, the Director of Policy Statistics, Nigeria Institute of Leather Science and Technology, NILEST, said every player in the leather industry has been brought together to work in harmony in safeguarding the industry from imported materials.
“We have been able to make sure everybody is part of the implementation of the leather policy . We have done the amalgamation of all.the leather actors in the leather value chain under one umbrella so we can talk to each other. We should consume what we have so the excess can be exported later
Lagos State Commissioner for Commerce Trade industry and investment, Folashade Ambrose-Medebem who was represented by the Director of Commerce, Adesina Helen said the administration of Sanwo-Olu initiated the building of a leather hub in Mushin to add value to the leather sector and the leather material produced locally.
She said the hub will be a primary source for retailers to purchase their materials when it begins operation.