The Nigerian Export Promotion Council (NEPC) has called on the Ebonyi State Government to invest in hides and skins processing facilities to unlock the sector's economic potential. This initiative aims to create jobs and boost the state's participation in Nigeria's non-oil export market. The council also urged hides and skins dealers to formalize their businesses and adopt improved preservation methods to enhance product quality and meet export market standards.

A one-day sensitisation workshop was held at Nkwo Market, Ezzangbo, in Ohaukwu Local Government Area, to educate operators on opportunities in the non-oil export sector. The workshop, themed "Leveraging on the Hides and Skins Value Chain," attracted traders, including a significant number of women, who sought practical knowledge on expanding their businesses and overcoming financial and operational challenges. Okechukwu Amechi, the NEPC State Coordinator, emphasized the need for traders to transition from informal trading to more organised and profitable business operations.

Amechi stated that informal trading accounted for an estimated 70 to 80% of hides and skins transactions in Nigeria, limiting proper documentation, access to finance, and economic benefits for producing communities. He explained that business registration, standardisation, training, and cooperative structures would improve traders' bargaining power and facilitate access to support programmes. Amechi also identified poor flaying techniques, inadequate salting, and improper preservation as practices that damage products and reduce their commercial value.

The NEPC State Coordinator urged traders to establish cooperatives to pool resources, protect their collective interests, and negotiate better prices with major buyers. He advocated for a common facility centre where raw hides and skins could be processed into finished leather for manufacturing shoes, bags, and belts. Amechi cited the leather industry in Aba, Abia State, as an example of the benefits of local processing, which could create employment opportunities across the supply chain, particularly for women and young people.

Traders at the workshop identified delayed payments and inadequate working capital as major challenges affecting the hides and skins supply chain. Alhaji Spina, leader of the Muslim community at Nkwo Jackie Market, explained that live-animal sellers supplied butchers, who subsequently sold the skins to dealers. However, delays in payments from downstream buyers often prevented butchers from settling their debts to suppliers. Spina appealed for government assistance with grants or loans to boost the business and increase revenue.

Chris Omeoha Chibuike, chairman of the Hides and Skins Dealers Association, also appealed to the government to improve traders' access to capital. He lamented that local dealers invested their money in purchasing skins but had little control over selling prices, which were often determined by major buyers, particularly Chinese traders. Chibuike commended NEPC for taking the sensitisation programme to the market, noting that many traders were previously unaware of the council's presence and the opportunities available to them.

Ude Chukwu Eze, a representative of the Raw Materials Research and Development Council (RMRDC), urged traders to call on the state government to establish a tannery and a dedicated hides and skins market. He explained that such facilities would promote skills development, entrepreneurship, and employment, particularly among youths and women. Eze also encouraged participants to explore opportunities under the Federal Government's Livestock Productivity and Resilience Support (L-PRES) project in Abakaliki for assistance relating to livestock production and associated value chains.

Key points

  • The NEPC urges Ebonyi State Government to invest in hides and skins processing facilities.
  • Informal trading accounts for 70-80% of hides and skins transactions in Nigeria.
  • Traders identify delayed payments and inadequate working capital as major challenges.

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SaharaWire Newsroom
SaharaWire

Reporting for SaharaWire from the Nairobi bureau.