Post by Trade facilitator on Mar 9, 2012 19:11:30 GMT 1
Nigeria’s huge leather industry export worth $43.4 billion is begging for investors, BusinessDay can reveal.
The industry is believed to be worth about $4.4 billion for raw hides and skins, $14 billion in rough-tanned and finished leathers of all types, and $25 billion for footwear with leather uppers, a study by Chemonics International Inc. prepared for the United States Agency for International Development (USAID) has revealed.
According to the study, over two decades, the average growth in trade has been 3 percent for raw hides and skins, 10 percent for rough-tanned and finished leathers, and nearly 8 percent for footwear and leathers. It states that in developing countries, however, the percentage growth in both rough-tanned products and footwear has been increasing at over 12 percent per year.
The study reveals that there is a sizeable amount of fertile land that can support commercial agricultural ventures in all parts of the country and that leather products will contribute significantly to diversifying the foreign exchange earning capacity of the nation and reduce imports.
It observes that the skin and leather industry promises jobs generated both on farm and off farm, especially with value added processing of hides and skins into leather products for export, and notes the availability of large domestic and regional markets for the absorption of surplus leather products.
It also notes the huge opportunities for value-added processing of hides and skins and extensive opportunities for investors (financial or materials) in Nigeria’s emerging fast-food industry, food processing, animal breeding, tanneries, shoe manufacturing, etc, for value added processing to satisfy both domestic and international market.
The study argues that a long-term neglect of the leather products industry in favour of oil production has left Nigeria behind pack in competing for a global market worth $72 billion, that increases in disposable income are fuelling the international demand for high quality leather shoes, jackets, handbags and upholstery, a market which is growing steadily at 3 percent per annum
Source: www.businessdayonline.com/NG/index.php/entrepreneur/entrepreneur-news/33893-nigerias-leather-industry-export-potential-valued-434bn-largely-untapped
The industry is believed to be worth about $4.4 billion for raw hides and skins, $14 billion in rough-tanned and finished leathers of all types, and $25 billion for footwear with leather uppers, a study by Chemonics International Inc. prepared for the United States Agency for International Development (USAID) has revealed.
According to the study, over two decades, the average growth in trade has been 3 percent for raw hides and skins, 10 percent for rough-tanned and finished leathers, and nearly 8 percent for footwear and leathers. It states that in developing countries, however, the percentage growth in both rough-tanned products and footwear has been increasing at over 12 percent per year.
The study reveals that there is a sizeable amount of fertile land that can support commercial agricultural ventures in all parts of the country and that leather products will contribute significantly to diversifying the foreign exchange earning capacity of the nation and reduce imports.
It observes that the skin and leather industry promises jobs generated both on farm and off farm, especially with value added processing of hides and skins into leather products for export, and notes the availability of large domestic and regional markets for the absorption of surplus leather products.
It also notes the huge opportunities for value-added processing of hides and skins and extensive opportunities for investors (financial or materials) in Nigeria’s emerging fast-food industry, food processing, animal breeding, tanneries, shoe manufacturing, etc, for value added processing to satisfy both domestic and international market.
The study argues that a long-term neglect of the leather products industry in favour of oil production has left Nigeria behind pack in competing for a global market worth $72 billion, that increases in disposable income are fuelling the international demand for high quality leather shoes, jackets, handbags and upholstery, a market which is growing steadily at 3 percent per annum
Source: www.businessdayonline.com/NG/index.php/entrepreneur/entrepreneur-news/33893-nigerias-leather-industry-export-potential-valued-434bn-largely-untapped
