Economy
Stakeholders Seek Lagos, Kano Synergy for Leather Industry
By Adedapo Adesanya
Stakeholders in the leather industry have advocated a strategic partnership between Lagos and Kano States to harness the potentials of the sector and improve its contribution to the nation’s Gross Domestic Product (GDP).
This call was made by stakeholders at a virtual summit themed Towards a Sustainable Leather Processing Industry in Nigeria: Kano Tannery, the Powerhouse on Thursday, October 29.
The summit was organised by the office of the Senior Special Assistant to the Kano State Governor on Lagos Affairs, Mr Anthony Oneya, in partnership with the Lagos Chamber of Commerce and Industry (LCCI) and supported by Tannery Association, Kano.
Mr Oneya said the partnership between both states will forge a way forward to expand local trade by bringing together value addition ideas and investments.
“The partnership between Lagos and Kano is long overdue and this will help grow the sector to the level it ought to be,” he said.
Mr Oneya urged governments to support the improvement in the value of leather goods for both domestic use and exports through the provision of 21st-century technology.
He said an improved tanning industry for leather will improve exports and give the sector the needed boost, noting that 22 out of the 36 tanneries in Nigeria were located in the Centre of Commerce.
Mr Lawan Sule-Garo, Chairman, Tanners Council of Nigeria, in his remarks, appealed for intervention funds from the government to revive the sector and create jobs.
Mr Sule-Garo also appealed to governments to grant incentives to wholesalers to bridge the financial gap and give priority to the local tanning industry.
On the consumption of cowhides, popularly known as ponmo, which could be used for leather production, the Tanner Council Chairman said “We can continue to get leather from other animals apart from cows. We must not deter people from consuming ponmo because we want to sell leather.”
Mrs Toyin Umesiri, Chief Executive Officer, Nazaru LLC, called for the creation of a leather trade information desk to bridge the information gap in the industry.
“A classic example of the gap is that end users are not connecting with what is available in the leather market and so source for materials and finished products from other places.
“If others get it right before us, then people would buy from them instead of us. Therefore, we become irrelevant in that market,” she said.
She urged leather experts to understand the various rules of engagement in local, regional and global markets to benefit maximally from different trade opportunities such as provided in the Africa Continental Free Trade Area (AfCFTA), which is set to kickstart next year.
In his remarks, Mr Segun Awolowo, Chief Executive Officer, Nigeria Export Promotion Council (NEPC), represented by Mr Abimbola Salami, a Deputy Director, said the leather industry could generate up to $1 billion in revenue by 2025.
Mr Awolowo stated that the footwear industry consumed 54 per cent of leather products globally and contributed about 25 per cent of Agriculture’s GDP, noting that the Leather Industry is a major earner which can drive the much-needed diversification from oil.
Also speaking at the event, Mrs Toki Mabogunje, President, LCCI, advocated a holistic approach to developing the leather value chain for a long-term growth strategy.
By Adedapo Adesanya
The Central Securities Clearing System (CSCS) Plc has declared the first interim dividend in its history after posting its financial results for the first half of 2026, reflecting robust earnings growth, improved operating efficiency and stronger capital market activity.
The board approved an interim dividend of N1.00 per ordinary share for the six months ended June 30, 2026, citing the company’s strong cash generation, resilient balance sheet and confidence in the sustainability of its earnings.
The interim payout represents about 56 per cent of the total dividend of N1.78 per share paid for the 2025 financial year, underscoring its strong earnings momentum while preserving financial flexibility to invest in technology, innovation and future growth.
CSCS recorded one of the strongest financial performances in its history during the review period, with total operating income rising by 92 per cent to N18.51 billion from the corresponding period of 2025.
The growth was driven by higher transaction fee income as capital market activity strengthened, continued expansion in depository services, increased collateral management revenues and stronger contributions from data and technology-enabled services. Investment income also improved as the company optimised its investment portfolio.
Despite the sharp rise in revenue, operating expenses increased by only 38 per cent, reflecting disciplined cost management and the scalability of the company’s business model.
As a result, operating profit surged by 186 per cent to N10.11 billion, while profit before tax climbed by 115 per cent to N13.21 billion. Earnings per share also rose significantly to 190.1 kobo from 109.1 kobo in the corresponding period of 2025.
The organisation also recorded improvements in operating efficiency. Its cost-to-income ratio declined to 45.4 per cent from 63.2 per cent a year earlier, while operating profit margin improved to 54.6 per cent from 36.8 per cent.
According to the company, the results demonstrate not only the benefits of stronger market activity but also the resilience of its operating model and its ability to convert revenue growth into higher profitability, improved shareholder returns and sustainable long-term value creation.
Commenting on the interim dividend, the Chairman of CSCS Plc, Mr Temi Popoola, said the board’s decision reflected confidence in the firm’s financial strength, earnings quality and long-term strategic direction.
He said the strong performance was driven not only by increased market activity but also by sustained improvements in operational efficiency, disciplined cost management and the continued diversification of revenue streams.
Mr Popoola noted that the Board remained committed to balancing shareholder returns with investments in technology, innovation, resilience and new growth opportunities that would strengthen CSCS’ position as Nigeria’s leading financial market infrastructure and one of Africa’s foremost post-trade institutions.
The chief executive of CSCS Plc, Mr Shehu Yahaya Shantali, attributed the strong performance to the resilience of the entity’s business model, the dedication of its workforce and the confidence of market participants.
He said the first-ever interim dividend demonstrated the company’s ability to translate strong earnings growth and improved operating efficiency into enhanced shareholder value.
Mr Shantali added that CSCS would continue to strengthen its core market infrastructure, invest in technology and innovation, diversify its revenue base and enhance value creation for stakeholders while supporting the development of Nigeria’s capital market.
By Aduragbemi Omiyale
The national scale long-term issuer rating of Axxela Limited has been upgraded by GCR Rating to A+(NG), just as its short-term issuer rating was affirmed with a stable outlook.
The rating firm upgraded the long-term issue rating for Axxela Funding 1 Plc’s N16.4 billion series 1 senior unsecured bond to A+(NG), while the N11.5 billion series 1 senior secured bond was lifted to A+(NG)(EL).
GCR noted in a note that the actions reflect the leading gas and power portfolio company’s robust business model, strong earnings performance, and sustained financial profile, reinforcing its ability to deliver long-term value while maintaining financial discipline.
Axxela’s recent achievements have been driven by its continued focus on responsible growth, customer satisfaction, and creating lasting value for national development.
“The ratings upgrade by GCR is a strong endorsement of Axxela’s disciplined approach to business. Beyond recognising our financial strength, it reflects the resilience of our business model and the confidence in our strategic direction.
“Over the past few years, we have continued to make significant strides across the business by expanding our natural gas infrastructure, strengthening our operational footprint, advancing our sustainability agenda, and maintaining an unwavering commitment to operational excellence and safety,” the chief executive of Axxela, Mr Moshood Olajide, commented on the development.
As the company continues to advance its long-term growth strategy, the upgraded ratings reinforce confidence in Axxela’s credit profile, financial resilience, and ability to create enduring value for investors, customers and other stakeholders.
By Adedapo Adesanya
The Ministry of Solid Minerals Development and the National Identity Management Commission (NIMC) have strengthened their partnership to deploy digital identity technology, aiming to combat illegal mining and enhance security in Nigeria’s mining sector.
Speaking while receiving the Director-General and management of NIMC on a courtesy visit to his office in Abuja, the Minister of Solid Minerals Development, Mr Dele Alake, described the commission as a critical institution in Nigeria’s development architecture, stressing that effective governance could not be achieved without a credible identity management system.
“NIMC occupies a critical position in translating policy into reality. It is pivotal to the development of any nation because governance today is driven by data, technology and credible identity systems,” he added.
He noted that inadequate identification systems had weakened enforcement efforts over the years, allowing illegal mining activities to flourish in mineral-rich communities.
“Without identification, we cannot trace or track, and insecurity will flourish. In the solid minerals sector, we need effective monitoring of both legal and illegal operations.
“A credible identity ecosystem will strengthen regulation, improve enforcement and support our efforts to sanitise the sector,” Mr Alake said.
The minister identified technology, statistics, data gathering and digital identity as critical enablers for evidence-based policymaking, improved regulatory oversight, efficient licensing, investment promotion and national development.
On her part, the DG of NIMC, Mrs Abisoye Coker-Odusote, highlighted several opportunities for collaboration between both institutions, noting that the newly enacted NIMC Act has positioned Nigeria to fully embrace a digital governance ecosystem.
She explained that deeper integration of identity management into the solid minerals sector would facilitate database integration across government institutions, enhance regulatory compliance, strengthen security and law enforcement, improve monitoring of operators, and provide stronger support for the implementation of Community Development Agreements (CDAs) in mining host communities.
Mrs Coker-Odusote added that NIMC’s upgraded digital infrastructure is capable of supporting government institutions in building reliable databases, improving transparency and delivering more efficient public services.
Both institutions said they would immediately begin implementing technology-driven initiatives under the partnership, expressing confidence that expanding access to trusted digital identities for miners and other eligible residents would enhance accountability and strengthen governance in the solid minerals sector.
