FG Urges Investors To Unlock $2 Billion Potential – Nigeria’s Sugar Industry 

 FG Urges Investors To Unlock $2 Billion Potential – Nigeria’s Sugar Industry 

The Director-General of the Nigerian Institute of Leather and Science Technology (NILEST), Mohammed Yakubu, shared in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja that efforts are underway to revitalize Nigeria’s leather industry…….CONTINUE READING 

Yakubu, who also chairs the national leather policy implementation committee, emphasized the need for expanding tannery facilities to support proper leather processing.

“Additional tanneries are essential for equipping the industry with modern infrastructure and technology,” Yakubu noted, highlighting leather’s potential for generating foreign exchange and substantial employment. He added that tapping into this sector aligns with Nigeria’s goals of revenue diversification and strengthening local production.

“Nigeria has a strong reputation in leather,” Yakubu said. “We once had 84 leather companies, with some even extending to Italy and Spain. We aim to restore that legacy.”

The industry, he explained, has struggled due to inadequate infrastructure, particularly costly and inconsistent power supply, which makes up over 50% of production expenses. NILEST and the policy committee are urging the federal government to provide affordable power, enabling the leather industry to compete globally.

Yakubu emphasized that cheap, reliable power is crucial for Nigeria to rival leather-exporting giants like China, Brazil, and India. “Our industries need support to be competitive, especially in terms of energy costs,” he stated.

He also pointed out that Nigeria’s consumption of hides and skins as food (ponmo) is partly due to limited capacity within the leather sector to absorb the daily supply. For instance, with around 100,000 cows slaughtered daily in Lagos alone, only 48 facilities exist to process these hides into leather.

Yakubu proposed that, by reducing production costs, more leather businesses could thrive. “The main challenge is power, not taxes. Supporting industries will create jobs and bring foreign exchange, making any concessions worthwhile,” he explained.

The institute plans to establish mini tanneries across Nigeria to reduce ponmo consumption by creating more avenues for processing hides into leather. “Our campaign to reduce ponmo consumption has gained traction,” he said, noting that mini tanneries would process one to five tonnes of leather weekly in various clusters. This initiative aims to support those whose livelihoods rely on selling hides and skins while promoting leather exports