The Nigerian Institute of Leather and Science Technology (NILEST) has announced plans to expand the country’s leather industry by setting up small tanneries across the country to process hides and skins into leather. Prof. Mohammed Yakubu, the Director-General of NILEST and the Chairman of the National Leather Policy Implementation Committee, shared this information in an interview in Abuja. He highlighted that this move will supply the Infrastructure that is required and aid in lowering the amount of hides and skins consumed domestically, which are frequently consumed as “Kpomo” due to inadequate processing capacity. Mini tanneries, according to Yakubu, will improve the production of leather for both domestic and international markets, generating employment and cutting waste.
As a major player in Nigeria’s drive to capitalize on the leather industry’s economic potential, NILEST was founded to offer training, research, and development in this sector. However, the industry has struggled in recent years to realize its full potential. Due to a lack of infrastructure, low investment, and competition from imports, the sector has lagged despite the country’s abundant cattle supply, which offers a plentiful supply of raw materials. Lack of Investment in updating industrial methods and inadequate infrastructure have made it difficult for the industry to compete.
Establishing new tanneries comes with broad benefits.
One encouraging step in overcoming these challenges and reviving the industry is the recent drive to establish tanneries in all 36 states in the country. This endeavor shows the government’s acknowledgment of the economic potential of the sector considering that the country has one of the greatest cattle populations in Africa and provides a substantial supply of hides and skins. It is also anticipated to have broad benefits, including the ability to boost employment, boost economic expansion, and lessen Nigeria’s reliance on imported products.
Given its enormous potential, it was predicted that, with sufficient government assistance, the sector would contribute more than $17.5 billion to the country’s GDP annually. After declining for two years, the Nigerian leather market hit $3.1 million in 2023. With yearly Export values ranging from $600-800 million, the industry plays a significant role in both GDP and employment. In spite of obstacles like the need to import finished goods, the industry is expected to reach a value of $1 billion by 2025.
Rural economies stand to benefit from this initiative.
By establishing local tannery infrastructure and unlocking the economic potential of one of its most underutilized industries, the institute seeks to position Nigeria as a major leather producer. All tanneries will act as a central location for processing raw hides and skins, facilitating more effective Manufacturing and preventing the waste or export of raw materials. Nigeria’s rural economies also stand to benefit from this initiative, as tanneries will open up new markets for Livestock producers who provide the raw hides and skins. Additionally, this move can help create a more integrated supply chain by assisting small enterprises and local artists who produce leather goods.
Also, this action supports the growth of leather products in the country, ranging from shoes and bags to upholstery and industrial components, by offering local businesses a reliable supply of leather. With a better local production Culture and less demand for imported leather, this can help Nigerian businesses expand in both domestic and foreign markets. Nigeria’s position in International Trade may also be enhanced by the industry’s potential to grow into a sizable export industry. This would increase its presence in global marketplaces as its leather quality becomes more well-known as it was in the past.
Related Article: An overview of Nigeria’s leather industry
Although the global leather industry is dominated by nations like China, India, and Italy, demand for distinctive leather goods sourced ethically opens opportunities to countries with high prospects like Nigeria. With the appropriate support and quality control, Nigerian leather might compete in the global market, boosting the nation’s foreign exchange reserves and diversifying its export base. Nevertheless, the government’s capacity to address tanning’s negative environmental effects will determine how well this plan succeeds. It will be essential to invest in contemporary, Eco-friendly tannery technologies and to follow regulations to maintain Sustainability and reduce Pollution concerns.