Leather manufacturers seek speedy implementation of ‘NEXIM Sealink project’

Finished leather product manufacturers in Aba, the commercial hub of Abia State have observed that the proposed Sealink Project, spearheaded by the Nigerian Export-Import Bank (NEXIM) will help formalise activities of the sector.

The group in their presentation at a town hall meeting organised by the Nigerian Shippers’ Council (NSC) in Aba, affirmed that Government and sector operators are losing so much money, due to the informal trade that goes on in the sector and urged NEXIM to ensure that the Sealink Project takes off as soon as possible.

The Aba leather cluster said to be the biggest in West Africa, with about 40,000 people directly engaged in the manufacture of shoes, belts and bags and a production capacity of about one million pairs of shoes per week, produces for local and international markets.

However, due to unofficial export that goes on in the sector, it has been difficult for policy makers to get accurate data to develop the sector.

Ken Anyanwu, national secretary, Association of Leather and Allied Industrialists of Nigeria (ALAIN), an association of shoe, bag and belt makers, in an interview with BusinessDay in Aba, explained that the data currently used for policy and advocacy in the leather sector are mere estimates, stressing that no accurate and verifiable information on the activities of the sector are available for use.

These include finished leather goods needed by Nigeria annually, finished leather produced and exported from Nigeria annually, Nigeria’s finished leather goods production capacity, quantity of products exported from the country and the accurate number of persons engaged in production in the sector.

The proposed regional Sealink Project to connect West and Central Africa sub-regions, according to NEXIM, would foster indigenous participation of African nations in the maritime sector.

Robert Orya, managing director, NEXIM Bank, explained that the Federation of West African Chambers of Commerce and Industry (FEWACCI) would partner NEXIM on the project.

Orya explained that the purpose of the Sealink project is to foster indigenous participation in the maritime sector through minimising of freight rate payment.

He stated that the project will cut across West and Central Africa, providing immediate impact to the improvement of basic road infrastructure, which has slowed African and Economic Community of West African States (ECOWAS) trade levels by 20 per cent.

“The total project cost is estimated at $60million with $36million to procure vessels, equipment, office space and other infrastructure. About US$24million will be the working capital to cover the general and administrative expenses,” he said.

The NEXIM managing director also disclosed that the project will make Nigeria a maritime hub for West and Central Africa and enable NEXIM achieve its planned revenue growth by improving intra-regional trade levels to about 15 per cent annually.

 

GODFREY OFURUM