How high foreign exchange boosts local leather production

With the campaign for more patronage for Nigerian-made goods, many people have ventured into the business of producing quality goods such as clothes, bags, shoes etc. Daily Trust on Sunday spoke to entrepreneurs in leather works to uncover the prospects of locally made leather products in the nearest future.

Nigeria is one of Africa’s top leather exporters. Kano is the largest trading centre in Nigeria’s leather industry, and the traditional tanneries in northern Nigeria are the country’s oldest surviving leather producers.

The Nigerian leather business has developed beyond anyone’s expectations. Leather is also known to be supplied by tanneries in the north to well-known brands such as Louis Vuitton and Gucci.

According to export data, Italy and Spain are the top import destinations for Nigerian leather, as they account for 71 per cent of total exports. They mostly deal in sheep leather, as sheep and lamb leather have significant export value in Asia.

Over the years, Nigerians have grown accustomed to buying locally made goods such as bags, shoes, furniture. Five to ten years back, the story wasn’t the same, as a lot of patronage went towards imported goods.

However, there has been high demand for locally made goods within the country. Asides the appreciation for the improved quality, the increased value of foreign exchange has forced a lot of Nigerians into patronising local brands.

Grace Ukpai, who spoke to Daily Trust on Sunday, said “When the dollar was still $1 to N300/N350, I could afford to buy imported brands from other countries for my customers. Now, with the current exchange rate, I’ve began to patronise Nigerian brands and to my surprise, the quality is top-notch.”

Another person, Elizabeth Ajunwa, mentions that a majority of the bags and shoes she owns are Nigerian brands. According to her, they are affordable and if taken care of properly, these products actually last.

“I have a few bags and shoes which I bought from a Nigerian brand. To tell you the truth, I started buying them because they were affordable compared to foreign brand. But over time, I found out they were equally as good as the foreign brands I would buy.”

Haowa Bello is an entrepreneur who engages in the production of leather bags. She also runs a farm where leather is produced and used in producing some of her handbags. In an interview with Daily Trust on Sunday, Haowa narrates that her sole aim of going into leather bag production as a business was to change the perspective and improve the confidence Nigerians have in locally made goods.

“I started my business in 2008 out of passion. My mindset at the time was that I wanted to change the negative perspective people had regarding made-in-Nigeria products. I started small and was consistent with my work.”

Out of all the materials used for the production of bags, Haowa explains her reason for indulging in the use of leather. She mentioned that; “Leather is a premium material derived from animal hide and skin. Other materials that may be used to produce handbags are a lot cheaper. Leather bags are known for quality and longevity.”

To start her business, she said it wasn’t capital intensive as people expect and that she used a small sum to start her business. “I remember starting my business with N30,000 capital and from there, I managed to grow the business organically”

“Most leather producers buy from local leather suppliers. For the bags we produce, we source from local suppliers and import as well.

“We use a lot of calf skin, goat and sheep skin for most of our products. We use exotic skins like crocodile and ostrich leather for our premium range bags.

“Also, I like to tell people that good workmanship in leather products is judged based on the symmetry of the work, stitching, and finishing,” she added.

According to Haowa, when producing with leather, the cost of production can be relatively high because of the value of leather in the market. She states that; “Leather products are generally more expensive because they require more skills to make and the cost of leather is more expensive compared to other materials like canvas or synthetics” Due to the type of leather used and the size of the bag produced, the bags Haowa produces vary in prices. Her least bag goes for N42,000.

While speaking on the patronage of locally made goods, Haowa says she remains grateful for the large customer base she has been able to amass over the years.

She said “Nigerians have embraced local fashion and are very supportive of local designers. I’m overwhelmed with gratitude by the support I’ve gotten by fellow Nigerians.”

Although Haowa can boast of a successful business over the years, she also records some challenges she has faced over time. She noted that: “A major challenge for most local businesses is the instability in price of raw materials. It makes it hard to project future spending and manage expenses properly.”

Haowa, who spoke on issues relating to access of land to women, mentioned that lack of information is the reason why many women aren’t aware of opportunities that are available when it comes to acquiring land.

“There are initiatives for women to access such opportunities but I feel a lot of women don’t have the information. Access to the right information is key.”

However, with the growing rate of insecurity in the country. Haowa expresses gratitude as she mentions that the current insurgency in the country has in no way affected her farming business. “My business hasn’t been directly affected by the insecurity. Nonetheless, we have been able to provide apt security and also lucky to have the farm in a safe environment.”

Speaking on what it takes to be a farmer, Haowa explains that; “Farming is a lot of work. It needs patience, dedication and commitment. It’s rewarding but you have to put in the work. For animal farming, educate yourself on caring for the animals the right way and have a Vet on rotation.

“You should be creative on ways to feed your animals because the cost of feed can cripple your business. The saying prevention is better than cure is most relevant in this sector.”

Francis Ugor, another entrepreneur who’s into the production of bags and shoes, said the growth of customers over the years has been tremendous. He describes the growth of the market as impressive.

“When I started my business, I used to beg people to patronise me and they would often complain about the quality of my products, saying it doesn’t match up to foreign products. Now, I’m so loaded with customer orders that I can’t even tell when I’d finish.”

However, Francis says a major challenge he faces with production is the fact that very few people are really knowledgeable about the job. He explained that “People are still laid back in operation when it comes to leather work. A lot of our artisans are not familiar with proper equipment used in the production of bags and shoes.”