Summary of stakeholder presentations at #MadeInNigeriaShoeExpo including Bank of Industry (BOI), Nigeria Export Promotion Council (NEPC), United Nations Industrial Development Organization (UNIDO)
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Made In Nigeria Shoe Expo Post event report - Abuja, 2016
1. NICON LUXURY HOTEL, | ABUJA | June 10, 2016
Made In Nigeria Shoe Expo (MINSE)
POST EVENT REPORT
Institutional Partners Development Partner
2. PAGE 1
LIST OF ABBREVIATIONS
Association of Leather and Allied Industrialists of Nigeria ALAIN
Bank of Industry BOI
European Union EU
Graduate Entrepreneurship Fund GEF
Gross Domestic Product GDP
Investment and Technology Promotion Office ITPO
Leather and Allied Products Manufacturers Association of Nigeria LAPAN
Made In Nigeria Shoe Expo MINSE
National Accreditation Body NAB
National Quality Infrastructure Project NQIP
Nigeria Export Promotion Council NEPC
Nigerian Association of Small and Medium Enterprises NASME
Nigerian Committee on Trade procedures NITPRO
Nigerian Tourism Development Corporation NTDC
Small and Medium Scale Enterprise SME
United Nations Industrial Development Organization UNIDO
United Nations Layout Key UNLK
3. PAGE 2
TABLE OF CONTENTS
Executive Summary 3
Event Outlook at a glance 4
Percentage configuration
Geographic coverage
Key Attendees at the Expo 5
Government Ministries, Departments and Agencies
Footwear and leather manufacturers
International Development Partners
Footwear and leather Associations
Contributions 6
Bank of Industry 7
Accessing Finance for Small and Medium Scale Enterprises (SME’s)
Nigerian Export Promotion Council 8
Export Procedures and Documentation in Nigeria
United Nations Industrial Development Organization
Appraising the relevance of the National Quality Infrastructure Project (NQIP) to the
Footwear and Leather sector in Nigeria. 9
United Nations Industrial Development Organization
Relevance of environmental compliance in boosting prospects for leather products from
Nigeria 10
Ministry of Budget and National Planning 11
Nigeria Ports Authority 11
Association of Leather and Allied Industrialists of Nigeria 11
Recommendations 12
Access to finance
Sensitization
Quality Compliance
Conclusion 13
Appendix
Appendix A : Photo reel
Appendix B : Presentations (Available on request)
4. PAGE 3
EXECUTIVE SUMMARY
The Made in Nigeria Shoe Expo is a unique platform created by LOGSAMES
LIMITED, organizers of the Nigeria Non-Oil Exportable Products Trade fair to properly
harness vibrant opportunities available in Nigeria’s Footwear and leather sector. With
over a decade of experience in organizing business related events, we have come to
realize that until we take a sectoral approach to tradeshows, we might not be able to
maximize the opportunities available in each sector. This accounts for our sector focus
on the footwear and leather industry.
The choice of footwear and leather sector is due to its value chain and value
addition orientation – which proffers the best hope to addressing unemployment, and
moving away from raw material export to finished products. At every stretch of the
value chain, we find manufacturing concerns that could if properly encouraged, help to
drive sustainability within the sector. In addition, the contribution of this sector to
national GDP has been on the increase and happens to be a low hanging fruit for the
government to nurture in promoting the growth of Non-Oil sector in Nigeria.
This edition of the expo has seen all stakeholders from the private sector and
government MDA’s come together, to once more appreciate progress that has been made
in the sector. This edition saw attendance from four key public institutions – the Ministry
of Budget and National Planning, Bank of Industry, Nigerian Export Promotion
Council and the Nigeria Ports Authority. Input also came from various associations such
as the Association of Leather and Allied Industrialists of Nigeria (ALIAN), Leather and
Allied Products Manufacturers Association of Nigeria (LAPAN) as representatives of the
organized private sector.
This multi-stakeholder participation saw to the theme of the Expo: “Accessing
Future markets for Made in Nigeria Shoes” duly addressed from the angle of access to
finance from the Bank of Industry, export basics by the Nigerian Export Promotion
Council, and entrenching quality compliance for viability of finished products at our
local and international markets by the United Nations Industrial Development
Organization.
One major theme that ran through the discourse of the event was increased
sensitization, greater emphasis on quality compliance and strong support from the
government. These ingredients would ensure that whatever progress is attained in the
sector remains sustainable in the long term. Of interest too, was the fact that emerging
product lines such as fabric shoes and leather antiques are gaining lots of patronage
internationally and should not be left out as the focus is typically on leather and
footwear products. Similarly, the tourism potential for the sector also came into focus.
In conclusion, we believe the recommendations noted would be acted upon by
relevant stakeholders in ensuring that we not only grow the sector but open it up for
more job opportunities, attraction for foreign investments and an avenue for increased
foreign exchange earnings via export.
National Co-ordinator
Nigeria Non - Oil Exportable Products International Tradefair
5. PAGE 4
EVENT OUTLOOK AT A GLANCE
Percentage Configuration
20% 55%
Government Institutions Footwear and Leather Producers
15%
Footwear and Leather Associations
5% 5%
Leather Tannery E-commerce and Trade brokers
Geographic coverage
Abuja
Abia
State
Kano
State
Lagos
State
Sokoto
State
Plateuu
State
6. PAGE 5
KEY ATTENDEES AT THE MADE IN NIGERIA SHOE EXPO (MINSE), ABUJA, 2016
The Made in Nigeria Shoes Expo, 2016 attract several exhibitors and visitors including:
A. Government Ministries, Departments and Agencies.
i. Bank of Industry.
ii. Nigerian Export Promotion Council.
iii. Nigerian Ports Authority.
iv. Ministry of Budget and National Planning.
B. Footwear and leather manufacturers
i. Anaco Shoes Nigeria Limited, Abia state.
ii. Confort Shoes Industry Limited, Abia state.
iii. Divine Promise Industries Limited, Abia state.
iv. Dumex Industry Limited, Abia state.
v. Kofar Wambai New Side Skin dyers MPCS, Sokoto state.
vi. Maijama’a Shoes Enterprises, Plateau State.
vii. Minuel Faleti Designs, Lagos State
viii. Nabiko Investment Nigeria Limited, Abia state.
ix. Shoelayers.com – e-commerce site, Lagos state.
x. St David’s leatherworks, Lagos state.
xi. Urim Nigeria Limited, Abia state.
xii. Zapatos Enterpises, Kano State.
xiii. Z-Tannery Limited, Kano State.
C. International Development partners
United Nations Industrial Development Organization (UNIDO)
D. Footwear and leather Associations
i. Leather and Allied Products Manufacturers Association of Nigeria (LAPAN).
ii. Association of Leather and Allied Industrialists of Nigeria (ALAIN).
iii. Nigerian Association of Small and Medium Enterprises (NASME).
7. PAGE 6
CONTRIBUTIONS
Bank of Industry (BOI)
Accessing Finance for Small and Medium Scale Enterprises (SME’s)
Mrs. Ogo Akabogu (State Officer, Bank of Industry - Abuja)
She began her speech by expounding on how BOI’s focus is on providing financial and
business support services to SME’s in engendering industrialization in Nigeria.
She spoke on some of BOI services relevant to SME’s in the footwear and leather sector
such as Short and Long term financing that’s spans from 12-60 months. She emphasized
that support is strictly for manufacturers and not traders.
She spoke about funds being managed by the Bank for SME’s such as the Graduate
Entrepreneurship Fund (GEF); Matching funds from 16 state governments in Nigeria, the
Dangote Foundation, Central Bank of Nigeria etc.
She also dwelt on the need for SME’s to embrace corporate governance as this enhances
their chances of accessing grants and loans from within and outside the country. In this
regards, she introduced participants to Business Development Services Providers – a
key support service offered to SME’s to ensure that they draw up bankable business
proposals for funding.
She also gave assurances that the bank is keen on strengthening budding entrepreneurs
and small scale entrepreneurs as their aggregate impact on the sector in terms of
providing employment, assisting with internally generated revenue for respective state
government is phenomenal and could no longer be neglected.
She cited the 1 billion naira FASHION FUND recently launched in 2015 aimed at
supporting the value chain across the Fashion industry, as one of the ways in which BOI
has demonstrated commitment to growth of the Non-Oil sector and creative industries
in Nigeria.
When asked about how realistic the conditions for accessing BOI’S loan, she responded
that flexible and less stringent conditions have been applied to ensure that SME’s can
access these funds at lower interest rates, and also cited an example of one of the
exhibitors - Minuel Faleti Designs who benefited from its Graduate Entrepreneurship
Fund even as a corper, and has gone ahead to open a factory producing bespoke footwear
designs for the Nigerian Public.
8. PAGE 7
Nigerian Export Promotion Council (NEPC)
Export Procedures and Documentation in Nigeria
- Mrs. Estella Igwe (Trade Information Department)
She opened the discourse by outlining the vision and mission of the Nigeria Export
Promotion Council and explained that its core strategy is to focus on diversifying the
productive base of the economy towards Non –Oil Exports such as footwear and
leather products.
She explained further that the core functions of the NEPC lie on human capacity
development, assisting export oriented industries, spearheading export incentives,
and articulating export policies and programmes of the Federal government.
She reiterated the benefits of Non-Oil exports such as footwear products, which include:
its value addition and a shift from export of raw leather products, job creation, increased
economic activities and contribution to national Gross Domestic Product (GDP).
She delved further on a step by step basis the entire details for export procedures. This
was quite important for a number of exhibitors who still entertained a lot of fears about
exporting their products owing to ignorance. In addition, she introduced the audience to
the required documents required for exportation from Nigeria.
She informed participants that it was important that they familiarize themselves with
the trade conditions for their products and import regulations of the destination
country. In this wise, advised that the services of experienced professionals should be
engaged to ensure a hitch free process.
She implored all participants to come together and assist the NEPC in realizing the nation
via investing in Non-Oil exports.
A participant at the plenary requested to know how the NEPC has supported the sector
and intends to pursue the growth of the Footwear and leather industry. The facilitator
responded that the First Common Facility Center established in Aba, Abia state, Nigeria
was possible via the collaboration of NEPC with the United Nations Industrial
Development Organization.
In addition, she cited NEPC engagement with taking the lead in trade facilitation via its
been chair of the Nigerian Committee on Trade procedures (NITPRO) that targets
harmonization of Nigeria’s trade procedures and documentations within the United
Nations System and other international standards. She noted NEPC’S achievements in this
regards such as the 50% compliance of Nigeria’s trade documents with the United
Nations Layout Key (UNLK). Lastly, she mentioned the Export clinic that is been run by
NEPC to provide extensive education on export dynamics too.
9. PAGE 8
United Nations Industrial Development Organization (UNIDO)
Appraising the relevance of the National Quality Infrastructure Project (NQIP) to the
Footwear and Leather sector in Nigeria.
Mr. Charles Malata (UNIDO Chief Technical Director, NQIP)
The Facilitator began by introducing UNIDO as a long term partner with the Footwear
and leather Industry in Nigeria, citing the instance of its role in establishing the pioneer
common facility center for footwear and leather products in Aba, Abia State, Nigeria. He
went on to explain the various pillars of UNIDO engagement at the moment within the
NQIP Framework. He noted that quality compliance was now the key challenge facing
the sector and that UNIDO in its quest for inclusive sustainable development has taken
up the responsibility to assist Nigeria in addressing quality compliance, conformity and
assessment issues.
He informed the audience that UNIDO has helped Nigeria to develop a National Quality
Policy geared towards improving the competitiveness of commodities like Footwear
and leather products both locally and internationally. He noted that the policy now
awaits the approval of the Federal Executive Council.
He noted that the strategy was dual pronged by focusing on improving competitiveness
of commodities like footwear and leather products both Nationally (local market) and
Internationally (export market).
He also reiterated that the policy had looked at what support services are required for
quality and standards to be at par with international best practices. Likewise, the
technical regulations that confer authority on several Ministries, Departments and
Agencies of government currently working on quality and standards with emphasis on
ensuring co-ordination and information sharing.
He said that the National Quality Policy when implemented would enable the
establishment of a National Accreditation Body (NAB). Adding that, this would be the
first time in the history of Nigeria that a National Accreditation Body (NAB) would be
established to accredit laboratory testing facilities for commodities such as footwear
and leather products. This NAB would have powers to issue certificates once products
have been duly accredited.
He also noted that such certificates would have international recognition and avoid
the need for re-testing in overseas market, as testing procedures would be in line with
global best practice.
10. PAGE 9
United Nations Industrial Development Organization (UNIDO)
Relevance of environmental compliance in boosting prospects for leather products from
Nigeria
Mr. Oluyomi Banjo (Environmental Expert with UNIDO)
- The Speaker who briefly took on the need for leather tanneries/ leather processing
firms to take conscious steps towards cutting down its emissions to the environment,
as there was a clear link now between environmental compliance and economic
growth. Citing that access to European Union Markets now place emphasis on
sustainability reporting to ensure that importers of various products comply with
emission control techniques and environmental standards too.
He noted that in the years to come, uncontrolled emissions from these tanneries
would inhibit its access to very strict destination markets and that could stifle growth
prospects for the leather sector.
Whist acknowledging the absence of relevant legislation in Nigeria to curb
environmental pollution in the sector, he implored participants within the
manufacturing value chain to take very seriously the impact of environmental
compliance acceptability of products emanating from Nigeria.
In addition, he said UNIDO had already established an Investment and Technology
Promotion Office (ITPO) in Nigeria to help with trade facilitation. This he believed
would be of benefit to stakeholders across the entire footwear and leather value chain.
The Investment and Technology Promotion Office (ITPO) in Nigeria would drive
domestic investment and help attract foreign direct investment to the sector and also
assist with technology transfer.
11. PAGE 10
Ministry of Budget and National Planning
- It was observed that Finished Leather Goods (FLG) such as leather antiques should be
duly covered when discussing engagements within the footwear and leather sector.
- The tourism potentials for such leather antiques were highlighted and the need to have
inputs from the Nigerian Tourism Development Corporation (NTDC) in subsequent
events too.
- Of essence was one of exhibitors Kofar Wabar skin dryers, from Sokoto state who
specializes in leather products and accessories such as center carpets, amongst others.
Her products were noted to have high market prospects for tourists.
- The need to have more engagement from the Ministry of Information in helping to
create adequate awareness about footwear and leather products was noted as a
plausible clause, such that even after the event, sensitization is continuous and
impactful to the Nigerian public.
Nigerian Ports Authority
- The current engagement of galvanizing stakeholders in pursuit of progressing the
footwear and leather sector was highly appreciated
- Of importance was the need for government to consider a flexible tariff regime for
exporters from the sector, such lowered tariff regime would act as incentive to help
boost footwear and leather exports from Nigeria.
Association of Leather and Allied Industrialists of Nigeria (ALAIN).
- The leadership of the association that the discourse on access to finance was of great
importance to its members, however it noted that it would be important to have more
flexible loan conditions for its members as the association had in time past secured
facilities for its members whilst acting as a guarantor for such facilities without recourse
for additional security of any form. That way, SME’s could grow within the sector.
12. PAGE 11
RECOMMENDATIONS
We strongly recommend the following in respect to locally manufactured goods from the
Footwear and leather sector:
A. Access to Finance:
A more engaging role in providing financial support for manufacturers from the footwear
and leather sector is advocated. Information management as regards to access to funds needs
to be extended to other industrial clusters too. There are emerging footwear and leather
clusters available in Benue state, Delta state, Lagos state, and Sokoto state respectively.
Entrepreneurs from these states should not be left out in planning and implementation of any
financial aid for the sector. We cannot continue to say footwear and leather begin and end
with Abia and Kano state respectively.
B. Sensitization:
We believe that the government would play in leading role in this engagement. The
recently passed Public Procurement Act is a good starting point. The sensitization strategy
should have a tripod approach. First is, that to key government MDA’s, the next is to local
consumers, and lastly to all stakeholders across the footwear and leather value chain.
Government agencies like the National Orientation Agency and Ministry of
Information would have to take lead here. Made in Nigerian Shoes have been wrongly
perceived as of low quality over the years and would require intense publicity to reverse this
skewed mindset.
Local consumers need to be duly informed of the progress that has been made with
quality of finished leather goods. Today, such products are largely accepted within ECOWAS
member states without recourse to questioning the quality.
Lastly, footwear manufacturers who still wrongly label their products as Made in Italy
or Made in Spain need to discouraged from such as we cannot attain growth for the sector with
such an attitude.
13. PAGE 12
C. Quality Compliance
This is key to development of the sector. All stakeholders at the Expo noted that
manufacturers must take seriously the issue of quality if desired progress is to take place in
the sector. Manufacturers indicated that government support would be needed to educate the
small scale producers on the rudiments for quality compliance. Such programs should be held
close to the major shoe clusters too. Relevant Agencies like the Standard Organization of
Nigeria should be engaged in this regards. There were also complaints about lack of quality
adhesives been available in the country. This could certainly affect the acceptability of
products from the country
Greater co-operation amongst stakeholders across the footwear and leather sector is
highly encouraged. Right from cattle ranch owners, to leather processors, and footwear and
leather accessories producers, there must be a clear line of communication. This allows for
easy traceability of defects, such that if quality is compromised along the chain, it becomes
easy to detect. Likewise, each layer of the value chain is aware of additives that have gone
into its raw material and identifies how to adjust its production process to meet export
standards.
Agencies like NEPC should also continue its due research and development into viable
sectors like footwear and leather to help identify emerging export products. Fabric shoes and
leather antiques are products that have huge export potential and need to be looked at. Today
such products do adorn top e-commerce sites globally. For instance, leather designers such as
Minku designs and Coz designs showcase their products at international trade shows and have
huge international patronage too.
Lastly, the quality compliance can only be attained on a continuous basis via
multistakeholder engagement between the government and private sector. Thus each
government agency plays a complementary role in the pursuit of entrenching a culture of
quality compliance in the footwear and leather sector of Nigeria.
14. PAGE 13
CONCLUSION
In conclusion, as organizers of the Made in Nigeria Shoe Expo (MINSE), we congratulate
all participants at this event including our institutional partners – the Bank of Industry and the
Nigerian Export Promotion Council, on the successful maiden edition of MINSE.
We use this opportunity to inform you that the next bigger and robust edition of MINSE
is scheduled for October 27th
– 28th
, 2016 at Federal Palace Hotel, Lagos. We look forward to
your participation and kind support, as we work towards a more sustainable and vibrant
engagement in Nigeria’s footwear and leather sector.