Business
Association Charges FG On Leather Industry
The Leather and Allied
Products Manufacturers Association of Nigeria (LAPMAN) last Wednesday urged the Federal Government to develop the indigenous leather industry to reduce importation of finished products.
The Chairman, Board of Trustees of LAPMAN, Alhaji Bashir Danyaro, made the call in an interview with our correspondent on the sideline of the two-day Leather Industry Revival Conference which ended in Abuja.
Danyaro said that a lot would be achieved if the industry was fully developed and that more revenue would be generated from the exportation of finished leather products.
“The last (leather foreign exchange) figure we had in year 2009 was $680 million but in 2011, it went up to $3 billion, according to Central Bank’s figures.
“In the nearest future, it is to see the Nigerian leather industry being grown to the level that Brazil has gone.
“Brazil now is exporting leather to 80 different countries, finished leather and finished goods.
“We are only exporting semi-finished and very little finished leather.
“But now we want a situation where our leather when we finish in Nigeria, should be produced into goods that we can export abroad.
“Then we are now adding value and creating more jobs and getting more money out of our products than sending our raw material from our country to finish them and return them to our country.“
The chairman listed the major challenges confronting the sector as: inadequate infrastructure, the need for manpower development and adaptation of new technologies as well as policy gaps.
“There are policies that government must make sure it creates so that it can help the industry grow; one of them is the local content.
“Government should encourage buy-in to save jobs so that Nigerians will be encouraged to buy Nigerian goods, thereby creating job for Nigerians.’’
According to Danyaro, the country used to have about 40 tanneries but the number has dropped to 10.
He, therefore, urged the government to ensure the revival of the industry to boost production, create jobs as well as gain the confidence of the people to wear their finished products.
“If the government has been able to take care of the industry the way it should, we would definitely have seen a change especially in the Northern part of the country where we have youths doing nothing.
“The leather industry is big enough to take all of them and give them gainful employment.
“It is a labour intensive area; all the leather chains require people and a lot of people.
“Any factory that is either making leather or producing shoes or bags uses a lot of labour.
Edun made the call while speaking at the 2025 Fellowship Investiture of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, where he reaffirmed the federal government’s commitment to sustaining ongoing reforms and expanding access to finance as key drivers of economic growth beyond four per cent.
“We all know that monetary policy under Cardoso has stabilised the financial system in a most commendable way. Of course, it is a team effort, and those eye-watering interest rates have to be paid by the fiscal side. But the fight against inflation is one we all have to participate in,” he said.
The minister stressed the need for banks to broaden credit access and finance innovation-driven enterprises that can create jobs for young Nigerians.
“The finance and banking industry has more work to do because we must finance their ideas, deepen the capital and credit markets down to SMEs. They should not have to go to Silicon Valley,” he said.
The minister who described the private sector as the engine of growth, said the government’s reform agenda aims to create an enabling environment where businesses can thrive, access funding, and contribute meaningfully to job creation.
The facility, known as the Nigeria Actions for Investment and Jobs Acceleration (P512892), is a Development Policy Financing (DPF) operation scheduled for World Bank Board consideration on December 16, 2025.
According to the Bank’s concept note , the financing would comprise $500m in International Development Association (IDA) credit and $500m in International Bank for Reconstruction and Development (IBRD) loan.
If approved, it would be the second-largest single loan Nigeria has received from the World Bank under President Bola Tinubu’s administration, following the $1.5 billion facility granted in June 2024 under the Reforms for Economic Stabilisation to Enable Transformation (RESET) initiative.
The World Bank said the new programme aims to support Nigeria’s shift from short-term macroeconomic stabilisation to sustainable, private sector–led growth.
“The proposed Development Policy Financing (DPF) supports Nigeria’s pivot from stabilization to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500 million IDA credit and US$500 million IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.
The document further stated that Nigeria’s private sector credit-to-GDP ratio stood at only 21.3 per cent in 2024, significantly below that of emerging-market peers, while capital markets remain shallow, with sovereign securities dominating the bond market.
To address these weaknesses, the DPF will support the implementation of the Investment and Securities Act 2025, operationalisation of credit-enhancement facilities, and introduction of a comprehensive Central Bank of Nigeria rulebook to strengthen risk-based regulation and consumer protection.
The operation also includes measures to deepen digital inclusion through the passage of the National Digital Economy and E-Governance Bill 2025, which will establish a legal framework for electronic transactions, authentication services, and digital records.
Beyond the financial and digital sectors, the programme targets reforms to lower production and living costs by tackling Nigeria’s restrictive trade regime. High tariffs and import bans have long driven up consumer prices and constrained competitiveness, particularly for manufacturers and farmers.
Under the proposed reforms, Nigeria would adopt AfCFTA tariff concessions, rationalise import restrictions, and simplify agricultural seed certification to increase the supply of high-quality varieties for maize, rice, and soybeans. The World Bank projects that these measures will help reduce food inflation, attract private investment, and enhance export potential.
The operation is part of a broader World Bank FY26 package that includes three complementary projects—Fostering Inclusive Finance for MSMEs (FINCLUDE), Building Resilient Digital Infrastructure for Growth (BRIDGE), and Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW)—all focused on expanding access to finance, strengthening institutions, and mobilising private capital.