Economy
LLF @5: Creating Opportunities for Leather Industry Players Across Sub-Saharan Africa
“The fast-evolving nature of the leather industry in Nigeria is quickly positioning the industry to become the next gold mine for our dear nation — that is, if it is properly explored and harnessed by both industry players and governmental bodies,” Femi Olayebi, CEO FemiHandbags, and Founder, Lagos Leather Fair opined at a leather industry stakeholder event.
Over the years, the Nigerian leather industry has continued to evolve and positively contribute to Africa’s economy both in revenue and in employment opportunities. According to the Nigerian Economic Summit Group (NESG), research shows that the industry contributes about 24% of the agricultural sector’s contribution to the GDP in Nigeria.
It is also one of the more significant employers of labour, with over 750,000 workers in the leather processing sector and about 500,000 in the finished leather goods sector. The Nigerian Economic Summit Group (NESG) has also projected that the industry could bring in earnings of about US$1 billion by 2025. Undoubtedly, the sector has the potential to metamorphose into the next big deal for Africa’s economy.
In order to make this prediction a reality, whilst simultaneously tapping into the enormous potential of the industry, select leading brands and industry thought leaders are taking up the responsibility — by forging alliances, and launching forward-thinking projects. One such project is the Lagos Leather Fair.
Creating opportunities for African Leather Industry Players
The Lagos Leather Fair (LLF) was created in 2017 by Mrs Femi Olayebi, the Creative Director of FemiHandbags — one of the continent’s leading leather brands. Having experienced, first-hand, the challenges that plague the sector, she was determined to provide a much-needed platform for leather designers to showcase their products, partner with stakeholders to grow the finished leather goods sector and change the narrative within an industry that holds an amazing potential to succeed as major foreign exchange earner.
Driven by these goals, the platform opened its doors to more than 6,900 individuals, businesses, partners, and other stakeholders from all across sub-Saharan Africa between 2017 and 2021. Each edition has created visibility for African leather-focused businesses and has featured revered thought leaders who equip industry players with the requisite knowledge necessary to navigate and grow within the industry.
Over the years, there has been steady growth within the leather industry. Nonetheless, there are prevailing challenges facing the industry.
Many local shoemakers, for instance, do not have access to the advanced technology needed to design high-quality wear for their teeming customers. This is a potential setback, especially when compared with their international counterparts. A large portion of the more established and advanced shoemakers in Lagos are those who design their shoes abroad and then import these shoes to the country for finishing.
Lagos Leather Fair has sought to tackle this challenge by investing in capacity building opportunities, through a series of training partnerships: seeking to bridge the skills gap in the leather and non-leather manufacturing industries; raise the standards; and equip young industry players with the requisite hard and soft skills to navigate the industry. LLF recently partnered with a training program called Kafawa.
The program was designed by My World of Bags in partnership with Mastercard Foundation, and it presents a holistic training experience from basic machine skills to specialised leather-crafting, to soft skills and entrepreneurship classes; since its launch in 2021, the program has directly impacted over 250 micro and small leather business owners across Nigeria. The 2022 edition of LLF will feature these recent graduate trainees within its Emerging Designers segment at the fair.
Made in Nigeria for Nigerians
Several reports have confirmed that many Nigerians have a preference for international brands because of their perceived higher quality than local brand output. A Stears business report revealed that if you ask 100 Nigerians to choose between local or international brands, 92 will choose the international brand, while 8 would be undecided.
In another blind brand experiment conducted amongst Nigerians, 98% claimed that they could differentiate between internationally-made and locally-made shoes. When the shoes were provided to them, however, only 32% could make a distinction. As a result, many companies across diverse industries have launched several consumer-focused campaigns to encourage local shopping, and the leather sector is no different.
Since its inception, the Lagos Leather Fair has curated over 30 masterclasses that have held conversations to change the narrative around made-in-Nigeria, for the leather industry and beyond. A call for Nigerians to shop local will not only develop the leather industry but will have a significant impact on the Nigerian economy at large. Lending their voices to the cause, respected thought leaders Alheri Egor-Egbe from Google, Giovanni Romano from Ithaki Paris, Laduma Ngxokolo from Maxhosa Africa in South Africa, Prof. Yvonne Watson of the Parsons School of Design, New York and a 3-D design expert Baboa Tachie-Mensa from Ghana, and dozens of others have joined in to drive this conversation with LLF over the years. These conversations are well paired with the fair’s spotlight on strong industry brands with premium quality products that have begun indeed to change the narrative.
2022 Outlook
“For us at LLF, the goal is to continue to drive value and draw attention to the leather industry. We believe that we have discovered a gold mine that will not only make our businesses successful but will increase the prosperity of our nation. We will not stop doing the good work until the industry is developed,” said Femi Olayebi, CEO FemiHandbags, and Founder of Lagos Leather Fair.
In 2022, LLF is set to host several initiatives in line with its overarching goals. In commemoration of its 5th anniversary, the platform is set to host another physical fair in Lagos, Nigeria — it will open its doors to leather enthusiasts, producers, manufacturers, lifestyle lovers, fashion experts, and the wider public to showcase leather products and services and keep the spotlight on the vast possibilities within the industry.
This year’s fair will take place at the Balmoral Convention Center at Federal Palace Hotel, Victoria Island, Lagos on June 11t and 12. This year, LLF will feature dozens of leather exhibitors, and create opportunities for brands to connect with prospective customers, their peers and other stakeholders; masterclasses to drive conversation; atelier sessions to expose the hidden tricks of leather crafting, and fashion runway showcase to further showcase brands.
LLF has also hinted at the launch of two initiatives that will further drive the industry forward: one is The Leather Portal — a platform that will serve as an e-directory connecting leather designer, brands, tanneries, and hardware suppliers across Nigeria and Africa; another is the Guild of Leather Designers (GOLD), a not-for-profit advisory body that will support the professional development of leather designers, promote best practices, facilitate access to business development tools and serve as a bridge between leather designers and various stakeholders to create an effective and sustainable ecosystem.
There is no better time than now for the government to begin to take a closer look at the leather sector. In 2021, the National Leather and Leather Products Policy Implementation Plan was launched to address specific challenges and shortcomings of the leather sector, with pragmatic strategies to permanently resolve these issues for optimal productivity. Whilst this is a commendable development, there is an urgent need to begin to put that plan to action, and a great first step would be to get a closer glimpse into the happenings in the industry by starting at this year’s Lagos Leather Fair.
Economy
MRS Oil, FrieslandCampina Wamco Shrink NASD Index by 0.68%
By Adedapo Adesanya
The duo of MRS Oil and FrieslandCampina Wamco Nigeria Plc weakened the NASD Over-the-Counter (OTC) Securities Exchange by 0.68 per cent on Friday, June 5.
MRS Plc lost N19.00 during the session to sell at N171.00 per share compared with Thursday’s value of N190.00 per share, and FrieslandCampina Wamco Nigeria Plc depreciated by N8.70 to finish at N181.68 per unit compared with the preceding session’s N190.38 per unit.
As a result, the market capitalisation further lost N22.59 billion to close at N2.607 trillion versus the N2.630 trillion it ended a day earlier, and the NASD Unlisted Security Index (NSI) dropped 37.76 points to settle at 4,358.32 points, in contrast to the previous day’s 4,396.08 points.
The alternative stock market closed the last trading day of this week with a price gainer, Central Securities Clearing System (CSCS) Plc, which gained 6 Kobo to quote at N78.40 per share compared with the preceding session’s N78.34 per share. However, it could not prevent the market from going down at the close of business.
Yesterday, the volume of securities bought and sold by investors went down by 50.0 per cent to 140,345 units from the preceding day’s 280,714 units, the value of stocks decreased by 16.5 per cent to N17.9 million from the previous session’s N21.5 million, and the number of deals carried out by market participants fell by 35.7 per cent to 27 deals from the 42 deals recorded on Thursday.
When trading activities closed for the day, Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and CSCS Plc with 64.7 million units traded for N4.4 billion.
GNI Plc also ended the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units transacted for N6.5 billion, and Resourcery Plc with 1.1 billion units valued at N415.7 million.
Economy
NGX Index Rebounds 0.15% on Renewed Interest in Financial Stocks
By Dipo Olowookere
Renewed interest in financial stocks and others lifted the Nigerian Exchange (NGX) Limited by 0.15 per cent on Friday.
Customs Street closed higher yesterday despite the 1.37 per cent loss recorded by the consumer goods sector as a result of profit-taking.
This was offset by gains in the other key sectors of the local bourse, as the insurance counter chalked up 1,14 per cent. The banking space appreciated by 0.90 per cent, the industrial goods segment grew by 0.46 per cent, and the energy sector expanded by 0.01 per cent.
Consequently, the All-Share Index (ASI) went up by 366.00 points to 242,593.31 points from 242,227.31 points, and the market capitalisation gained N235 billion to close at N155.594 trillion compared with the previous day’s N155.359 trillion.
The trio of International Energy Insurance, Abbey Mortgage Bank, and DAAR Communications improved by 10.00 per cent each yesterday to N7.26, N9.35, and N1.98, respectively, while Zichis advanced by 9.39 per cent to N32.38, with Sovereign Trust Insurance up by 8.70 per cent to N2.50.
On the flip side, Academy Press lost 9.84 per cent to quote at N8.25, University Press depreciated by 9.73 per cent to N5.10, Africa Prudential dipped by 2.63 per cent to N12.95, Chams crumbled by 2.44 per cent to N4.00, and International Breweries slipped by 1.59 per cent to N12.35.
Business Post reports that the market breadth index was positive during the session after recording 37 appreciating equities and 14 depreciating equities, implying strong investor sentiment.
Abbey Mortgage Bank led the activity chart with a turnover of 164.1 million units worth N1.5 billion, Ellah Lakes sold 76.7 million units for N767.2 million, Access Holdings transacted 44.8 million units valued at N1.1 billion, Linkage Assurance exchanged 23.0 million units worth N41.2 million, and The Initiates traded 20.2 million units for N562.1 million.
At the close of trades, market participants transacted 608.5 million units worth N32.0 billion in 53,826 deals versus the 588.5 million units valued at N27.9 billion executed in 57,352 deals in the previous session. This showed that the number of deals eased by 6.15 per cent, the volume of transactions rose by 3.40 per cent, and the value of transactions soared by 14.70 per cent.
Economy
Naira Depreciates to N1,362/$1 at Official Market
By Adedapo Adesanya
The Naira further depreciated against the United States Dollar by N3.46 or 0.25 per cent to N1,362.21/$1 from N1,358.75/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, June 5.
However, it appreciated against the Pound Sterling in the same market window during the session by N4.47 to trade at N1,823.59/£1 compared with the previous day’s N1,828.06/£1, and gained N7.00 against the Euro to sell at N1,574.58/€1, in contrast to Thursday’s closing price of N1,581.58/€1.
For another trading session, the Nigerian Naira maintained stability against the Dollar in the parallel market and the GTBank forex counter on Friday at N1,375/$1 and N1,372/$1, respectively.
The Naira is expected to remain strong in the near term, backed by a rise in external reserves, which are nearing $50 billion, enhancing analysts’ confidence about its outlook in the second half of 2026.
Heightened global uncertainty has reduced the incentive for importers and corporates to demand FX, as cautious trade weighs on import needs. Analysts estimate a $40 billion net FX position for the year, a projection anchored in oil windfall gains.
As for the cryptocurrency market, prices remained depressed following a strong US jobs report that spurred markets to price in higher-for-longer interest rates, sending Treasury yields and the dollar up while hammering stocks, especially AI-related names. Crypto markets saw heavy leverage washouts with about $1.6 billion in positions liquidated over 24 hours.
Ethereum (ETH) gave up 4.9 per cent to trade at $1,584.68, Solana (SOL) fell by 3.3 per cent to $63.22, Bitcoin (BTC) crashed by 1.9 per cent to $61,333.23, Dogecoin (DOGE) slipped by 1.8 per cent to $0.0821, and Ripple (XRP) moderated by 1.8 per cent to $1.09.
Further, TRON (TRX) dropped 1.6 per cent to sell at $0.3197, Binance Coin (BNB) slumped by 1.0 per cent to $581.18, and Cardano (ADA) declined by 0.4 per cent to $0.1589, while the US Dollar Tether (USDT) gained 0.07 to sell at $0.9997, and US Dollar Coin (USDC) closed flat at $0.9998.
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