FG targets additional 40,000 jobs from leather industry

The ministry of industry, trade and investment expects that its employment drive in eight value-chain sectors will lead to the creation of additional 40,000 jobs in the meat and leather industry, which is the country’ largest earner after oil.

“The project is currently facilitating links between leather and equipment suppliers, producers and retailers of finished leather goods,’’ says the ministry, in a statement made available to Real Sector Watch.

“It will also support investments that increase quality and productivity of cattle farming,’’ the statement says.

The scheme, known as Growth and Employment (GEM) project, is coordinated by the industry, trade and investment ministry, along with the UK Department for International Development and the World Bank. The specific project on the meat and leather industry seeks to ensure that there are increased incomes for at least 30,000 shoemakers and meat suppliers, while creating additional 5000 jobs in the industry and up to 35,000 indirectly.

In the project, the DFID is providing 90 million pounds as grant while the World Bank is giving out $160 million as a concessionary loan. Those who wish to benefit from the scheme are advised to form clusters and contact the ministry for onward finance access, Real Sector Watch has gathered.

The leather industry in the country has $680 million potential. Olusegun Aganga, minister of industry, trade and investment, recently said the country had the capacity to double this revenue if appropriate measures were taken.

It is believed that domestic producers of finished leather products struggle to compete with imports, particularly those from Asia, which are often cheaper. It is estimated that one million households keep

livestock in Kano and Kaduna states, though incomes of these players are often low, owing to poor animal husbandry and feed availability as well as poorly developed meat processing and supply chains. These and many other challenges are what the Federal Government intends to address through this scheme.

ODINAKA ANUDU