The United Nations Development Programme (UNDP) and the Lagos State government have called for increased investments in Nigeria’s leather and creative industries, saying stronger value chains, improved financing and expanded regional trade could unlock millions of jobs, strengthen local manufacturing and position Nigeria as a major player in Africa’s leather market.

The call was made at the Fashion, Leather and Creative Enterprise Spotlight organised by UNDP in partnership with the Lagos State government and ecosystem partners under the theme, ‘Crafting Prosperity: Connecting African Creativity to Markets, Capital and Growth.’

The event convened entrepreneurs, policymakers, development institutions and industry leaders to explore opportunities for scaling Micro, Small and Medium Enterprises (MSMEs).

Addressing the participants, the United Nations Assistant Secretary-General, Assistant Administrator and UNDP Regional Director for Africa, Ms. Ahunna Eziakonwa, said Africa possesses significant comparative advantages in leather production, but continues to export raw materials while importing finished products, thereby forfeiting opportunities for value addition, industrial expansion and job creation.

She observed that despite possessing abundant livestock resources, African countries continue to export raw hides and skins while importing finished leather products, thereby losing opportunities for value addition, industrial development and employment generation.

According to her, Africa produces approximately 2.3 billion square metres of leather yearly, accounting for about four per cent of global production, despite hosting more than 20 per cent of the world’s cattle population and about 25 per cent of its sheep population.

“We have the livestock, we have the raw materials and we have the comparative advantage that many countries do not possess. Yet our industry remains largely dependent on exporting raw materials rather than processing and finishing leather products within Africa,” she said.

Eziakonwa noted that Nigeria ranks among Africa’s leading leather producers alongside Egypt and Ethiopia, but remains a net importer of finished leather goods despite exporting semi-processed leather.

She said Nigeria possesses the potential to manufacture over 200 million pairs of shoes yearly, representing a market estimated at more than $1.4 billion, but currently produces only a fraction of its capacity.

“Nigeria is a leather powerhouse, yet we continue to export raw materials and import finished products at premium prices. The challenge before us is how to retain value, create jobs and ensure that African countries benefit from their own resources,” she added.

The UNDP Africa Director said financing constraints, weak industrial infrastructure, inadequate technology, limited market access and fragmented value chains are some of the barriers slowing the growth of the leather sector.

She, however, said the African Continental Free Trade Area (AfCFTA) presents an opportunity to transform the industry by creating access to a market of more than 1.4 billion people and encouraging greater regional integration.

According to her, AfCFTA could support stronger linkages between leather-producing states and manufacturing clusters, enabling countries to process, finish and trade leather products within the continent.

Lagos State Commissioner for Wealth Creation and Employment, Akinyemi Ajigbotafe, noted that despite the abundance of talent, many entrepreneurs continue to struggle with limited access to finance, markets and business networks.

Ajigbotafe said the state government was focused on building an ecosystem that enables businesses to grow, connect with new buyers and access markets beyond Nigeria. He added that Lagos was collaborating with development partners, financial institutions and the private sector to strengthen enterprise support systems, improve product quality and packaging, and support women and young entrepreneurs.

UNDP Nigeria Resident Representative, Ms. Elsie Attafuah, stressed the need to transition small businesses into globally competitive brands.

She said the initiative was designed to connect entrepreneurs to investors, strengthen brands and facilitate access to financing and new markets.

Attafuah stated further that energy access, financing, digitalisation, branding and intellectual property protection are some of the major challenges confronting businesses operating within the creative ecosystem.

She advocated stronger collaboration among states involved in leather production and processing, saying integrated value chains would help retain value within Nigeria, stimulate manufacturing activities and create sustainable employment opportunities.

She also urged stakeholders to promote African brands and leverage the continent’s growing market to drive economic transformation.