…Project to capture the size of the industry, touted to be the biggest in West Africa
The Aba smart office of the Nigerian Export Promotion Council (NEPC), the country’s non-oil export promotion outfit, has designed a programme aimed at stopping informal trade at the Aba finished leather cluster in Abia State.
Aba leather cluster exports finished leather goods to neighbouring West and Central Africa countries; however their transactions have been done unofficially, denying them export incentives.
Consequently, the data collection project of the NEPC, is geared towards capturing the size of the Aba finished leather industry, in terms of daily production, quantity of products sold, daily, the number exported and their countries of destination .
Relicx Shoilban, acting director, NEPC Smart Office, Aba, the commercial hub of Abia State, while briefing operators on the council’s plan, at a meeting held at Ariaria International Market, which currently hosts the cluster, explained that the Federal Government is interested in developing the Aba finished leather sector, especially as it is working towards diversifying the country’s economy.
He observed that the advent of crude oil resulted in the neglect of real sector-agriculture and manufacturing, which according to him, was the main stay of Nigeria’s economy, before the discovery of crude oil.
He however regretted that the country has witnessed downturn in revenue generation; occasioned, by the fall in oil revenue and stressed that diversifying the nation’s economy is imminent.
He informed the operators of government’s interest in developing the Aba finished leather sector, which must be done with data.
He explained that the data collection project of the NEPC, intends to reveal the quantity of products, produced at the cluster, daily, quantity sold daily, quantity that leaves Nigeria for other countries, as well as where the products go to, among other issues.
He said the NEPC smart office in Aba, has the intention to bring all players in the leather industry up to speed with the strategy to capture informal trade in the cluster.
He also reminded operators about NEPC’s commitment towards growing the non-oil export sector of the economy, citing the establishment of the Common Facility Centre (CFC) in Aba, which the Council established in conjunction with the United Nations Industrial Development Organisation (UNIDO) to enhance the capacity and quality of shoes made in Aba, among other intervention programmes.
He stated further that the current move is geared towards capturing the quantity of products that live Aba to other sub-Saharan African countries for record purposes.
“Consequently, the essence of this meeting was to synergise with the operators on how their transactions can be formalized, so that they can enjoy the benefits derivable from formal trade”.
He stated that the NEPC has in various ways helped exporters to gain international presence, one of which is international trade fairs.
While applauding the operators for their resilience and entrepreneurial skills, despite all odds, he stressed that the NEPC wants to capture the unrecorded movement of finished leather goods from the cluster.
Okechukwu Williams, president, Leather Products Manufacturers Association of Abia State (LEPMAAS) commended the Aba office of the NEPC, for initiating the programme, which he described as first of its kind in the sector.
He decried lack of data in the sector, which according to him, has deprived operators of incentives that accrues from formal export.
According to him, “Lack of data has also made it difficult for Government to make good policies, towards the growth of the sector”.
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