EXECUTIVE SUMMARY
ESTABLISHMENT OF LEATHER INDUSTRIAL PROCESSING AND EXPORT ZONE IN LAGOS FOR SOUTHWEST
The establishment of the leather industrial processing and export zone for the entire southwest region is one
of the strategic national programmes aimed at developing local content, value addition and export for leather
sector across the six regions nationwide. The project is one of the initiatives of the Federal Government
which is being organized and facilitated by the Nigerian Leather and Science Technology (NILEST) under
the Federal Ministry of Innovation, Science and Technology in partnership with Roseate Forte Nig LTD
(promoter/consultant) and various stakeholders. Consequently, we write to seek your support and
partnership towards developing our non-oil sectors while providing sustainable jobs and accelerated revenue
in Nigeria through processing, production and exports.
The initiative was developed to solve the perennial challenges and bridge the gap in the leather space by
leveraging the cutting-edge solutions and fostering long-awaited industrial revolution needed to make the
finest finished and polished leather available and develop the entire value chain for local productions,
markets and increased foreign earnings. The best solution before this project in Nigeria is to produce wet
blue which is cheap for exports and not useable for local producers who must import finished leather at high
costs for productions. The major raw skins are rather sold cheaply and consumed with no nutritional values
(PONMO).
Our research which corroborates with the report of our partner, Nigerian Leather and Science Technology
(NILEST) showed that the value chain of leather is around $17.5 billion based on shoe production alone in
five years which is about 12 times bigger than Lagos State 2024 budget ($1.5 billion). The project will be
instrumental for Nigeria to unleash and realize the huge economic realities across the entire value chain of
the industry. After southwest pilot, the project will be replicated nationwide across all other regions.
The project will be able to process over 20,000 skins daily available at Lagos Abattoir and other Abattoirs
across the remaining five States in the region. Lagos can take advantage of the facility to support and supply
the newly built Lagos leather production hub located at Mushin without sourcing for forex and saving huge
loss due to foreign importation. Other leather clusters/SMEs around southwest and other regions will benefit
from the zone. The remaining leather will be exported for forex earnings. Hundreds of thousands of jobs
will be created and losses due to importation of finished leather will stop. Our youths represent 67% of the
sector.
About $100 million will be required for the first phase of the project with excellent IRR of about 21% and
quick repayment around 5-6 years with the government institutional support and community participation.
ECONOMIC BENEFITS
i. Creation of over 1, 000, 000 jobs for youths in five years.
ii. The economic value of the leather is over $17.5 billion in five years.
iii. Adequate food production (livestock and grains) through backward integration programme.
iv. Empowerment and skill up programme for artisans and traders.
v. Production of 10,000 daily production of set of furniture for local market and exports.
vi. Production of 100, 000 shoes and other leather accessories daily for local market and exports.
vii. World class entrepreneurship hub to train 500, 000 youths annually.
viii. To make Nigeria competitive and take the lead in the AfCFTA.