• Monday, May 06, 2024
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BusinessDay

Production scales up as Aba shoes, garments, attract N1.6bn direct sales

The Abia State Government has attracted about N1.6 billion in direct sales from shoes and garments, through its campaign on Made-in-Aba goods, BusinessDay has gathered.
This includes 50,000 pairs of military boots, ordered by the Nigerian Army, the cost of which is estimated at N300 million, orders from the Nigerian Navy, the National Youth Service Corps (NYSC), Police and Civil Defence.
However this amount does not include daily transactions between artisans and their various patrons that are carried out through e-commerce platforms.
BusinessDay checks revealed that some patrons of Aba artisans send in samples through courier or WhatsApp and other social media platforms, while the finished products are supplied through courier services, provided by courier companies and local transport firms which run courier services. These orders come from all over the world.
It is estimated that about 30,000 pairs of shoes leave Aba, daily to neighbouring countries of Togo and Cameroun, among others.
Aba, the commercial hub of Abia State, has one of the largest concentrations of micro, small and medium enterprises (MSMEs) in Nigeria and a bulk of this number are engaged in leather works and garment making.
It is estimated that about 15,560 people are directly engaged in the production of shoes, belts and bags, while about 20,000 people are engaged in garment making in Aba, the commercial hub of Abia State.
Okechukwu Williams, president, Leather Products Manufacturers Association of Abia State (LEPMAAS) however stated that the cluster is planning to update its data, stressing that their number is far more than what they are working with at the moment.
According to Williams, “Powerline Shoe cluster is far above 6,000 members and it is the third largest cluster. The Umuehilegbu Industrial Market, known as Bakassi Shoe cluster, is the largest with about 10,000. We also have the Aba North plaza, which is also bigger than Powerline.
“With these three major plazas, excluding other smaller ones, our number has exceeded 15,560. However, this is a demonstrable data, people that we can identify easily, we know their shops and phone numbers and other details.
“Out of this number we are working with now, footwear accounts for 50 percent of our members, then bag makers, 25 percent, belt makers, 15 percent, while trunk box makers, account for the remaining 5 percent of the population”.
To provide a more conducive environment for the finished leather and garment makers and boost seamless production, the Abia State Government is currently constructing an industrial city at Umukalika, in Obingwa Local Government Area of the State, about seven kilometers away from the Aba city centre.
The Umukalika industrial site, spanning about 35 acres, would host 30,000 artisans.
In growing Abia economy, the State Government is encouraging private sector participation to produce essential goods and services in large-scale, help to keep the price of essential goods and services down and thereby increasing the real effective incomes of poor people.
To further boost activities of the Aba finished leather cluster, the Bank of Industry (BoI), the country’s industrial development bank recently signed a memorandum of Understanding with the Aba finished leather cluster, represented, by the Leather Products Manufacturers Association of Abia State (LEPMAAS) to support the sector, through the provision of equipment and working capital.
This decision of BoI, to fund the sector, has brought succor to the sector, which stakeholders argued has great potential to turn around the economic fortunes of Abia State and Nigeria.
Abimbola Adeyinka, an intervention manager at the Market Development in the Niger Delta (MADE), a DFID sponsored intervention programme, described the redevelopment as a significant achievement and milestone that will support small scale businesses within the Aba finished leather sector.
Adeyinka further stated that the agreement between BoI and the Aba FLS, would improve the potentials of export gains for the Federal Government, because Aba is inarguably, the largest finished leather sector in West Africa.
He explained that the intention of MADE was to stimulate growth in the Aba finished leather cluster, stressing that finance has been a major constraint on the volume, quality and sales of shoe, belt and bag makers in Aba.
BOI, according to Adeynka, has developed a product that is specific to the needs of Aba finished leather sector, having taken into cognisance their productive and sales circles.
“So, I think that from my own point of view, it is a very significant achievement and milestone, it will definitely support the business of small holding within the Aba Finished Leather Sector and improve the potentials of export gains for the Federal Government.

 

GODFREY OFURUM