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Home Business & Finance Business

Nigeria records N173bn leather trade deficit amid ponmo consumption and insecurity

Livestock abundance fails to boost leather industry as imports surge in H1 2025

Peculiar Adirika by Peculiar Adirika
December 23, 2025
in Business, News
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Nigeria posts N173bn leather trade deficit in H1 2025 due to ponmo consumption, banditry, outdated tanneries, and declining workforce, despite a livestock population of 273 million

Nigeria recorded a N173.04 billion trade deficit in the leather sector during the first half of 2025, despite having a livestock population of 273.8 million, according to stakeholders and National Bureau of Statistics (NBS) data.

Also read: Pernod Ricard Nigeria, FRSC launch campaign against drunk driving

Trade Imbalance

Between January and June 2025, imports of raw hides, skins, and leather products reached N190.02 billion, while exports totaled only N16.98 billion, creating a massive trade imbalance.

Import expenditure declined from N109.74 billion in Q1 to N80.28 billion in Q2, though overall imports increased 173.5% compared to H1 2024.

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Contributing Factors

Industry stakeholders cited multiple reasons for the deficit:

1. Ponmo consumption: High local consumption of cow skin (ponmo) reduces raw materials for tanneries.

70% of imported hides reportedly end up as food rather than processed leather.

2. Insecurity and banditry: Cattle rustling in northern Nigeria reduces livestock available for leather production and encourages illegal cross-border sales.
3. Outdated technology: Many tanneries operate with obsolete machinery, producing semi-processed “wet blue” leather instead of finished products.

4. Declining workforce: Factory closures and reduced employment, particularly in Kano, Lagos, and northern states, have hampered production.

5. Policy and economic challenges: Inconsistent government policies, poor business environment, and underutilized export incentives exacerbate the situation.

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Impact on Local Industry

The inability to process leather to finished goods has limited revenue opportunities, while factories like PAMAD (formerly Bata Shoes) operate at a fraction of their previous capacity.

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Stakeholders warn that Nigeria risks becoming a dumping ground for imported leather and semi-processed hides if the challenges persist.

Industry Warnings

Manufacturers and union representatives urge government intervention to:

Address insecurity in livestock regions.
Modernize tannery equipment and develop technical expertise.
Create incentives for value addition and local shoe manufacturing.
Regulate and reduce hides consumption for food to preserve raw material for the leather industry.

Conclusion

Also read: Nigerian stars dominate MIPAD 2025 Awards

Despite Nigeria’s abundant livestock, the combination of cultural practices, insecurity, outdated technology, and policy gaps continues to hinder the leather sector, leaving the country heavily reliant on imports and unable to compete globally with finished leather products.

Peculiar Adirika
Peculiar Adirika

Peculiar Adirika is a journalist and contributor to Freelanews.com, covering news, business, and public affairs.

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