Post by Trade facilitator on Apr 23, 2018 9:24:25 GMT 1
Overtime debate was all over on desirability of Export Expansion Grant (EEG) being provided for Nigerian exporters to be intensified, the National Association of Hides and Skins Dealers (NAHSD) once declared that cancelling the scheme would be injurious to the nation's economy.
A stakeholder was quoted to have said in Kano that millions of Nigerians employed within the Hides and Skin value chain would be made jobless, if the suggestions for its cancellation are accepted by the Federal Government.
He disclosed that contrary to insinuation, implementation of the scheme had actually facilitated the creation of millions of additional jobs within the leather industry value chain. Findings shows that implementation of the scheme had led to massive investment in the leather sector, which has translated into more jobs for the citizens, as well as foreign exchange earnings.
During the last regime, a body known as Leather and Allied Products branch of Manufacturers Association of Nigeria (LAPAN) had called for the cancellation of the grant on the ground that the adoption of the scheme was causing job losses.
"NAHSD" is a grassroots organisation representing the interest of the ordinary Nigerians in the country, whose survival depended on activities in Hide and Skin value chain. It was a wrong impressions being conjured against the EEG scheme.
"The scheme is not a waiver, which can be easily abused, it is an incentive that only serious companies active in the export business can access based specifically on approved procedures.
"The provision of EEG to tanneries has boosted the economic activities of the entire Nigerian populace as millions of people have benefited from it right from the primary consumers up to secondary consumers. Worthy of note are animal farmers and the butchers who are at the tail end of the leather industry.
"The scheme has remedied the pains of abject poverty that exist in the North and add value to the economy by attracting international investment to the leather sector. Moreso, hundreds of thousands of new jobs have been added at the various levels of processes which involves buying, selling, preserving, transportation and exporting of finished leathers.
On a more tangible note, EEG had succeeded in lifting the country's non-oil earnings from $0.2 billion in 2000 to over $3.8 billion in 2017, according to the Federal Ministry of Trade and Investment.
Examining the closure of indigenous companies involved in shoe-manufacturing in the country, contrary to the claim, none of them were denied treated leather for production.
"The truth is that treated leathers are readily available in the market, but most of the operators of companies in foot wear sector are unable to access them, for reason said to be associated with the escalating cost of production.
The closure of some companies in the shoe-sector has more to do with their inability to compete with international competitors, as a result of production difficulties, which goes beyond denial of access to raw material.
Therefore, individuals advocating for the cancellation of the scheme should re-examine their position, as the cancellation would definitely lead to shedding of millions of direct and indirect jobs, which would be very disastrous for the economy.
According to him, Nigeria is not the only country in the world that is providing incentives for exporters, pointing out that many countries, particularly the emerging economies, are doing the same.
A case in point of companies that have benefited from the scheme are too numerous to mention. There are known companies in Kano that before the introduction of the scheme were only able to employ 50 workers, but today, as a result of the scheme, had increased the number of their employees to over 4,000 workers.
It is still difficult to understand, why these individuals are interested in the cancellation of a scheme that is not limited to only leather sector, but to all exportable commodities such as cocoa, sesame seed, among others that are sourced from all parts of the country, and not the North alone.
One fact that these agitators need to know is that Nigeria is not the only country in the world providing incentives for manufacturers. Countries such as China, India, Brazil, among others are providing various forms of incentives for manufacturers within their domain, despite having near excellent infrastructure.
A stakeholder was quoted to have said in Kano that millions of Nigerians employed within the Hides and Skin value chain would be made jobless, if the suggestions for its cancellation are accepted by the Federal Government.
He disclosed that contrary to insinuation, implementation of the scheme had actually facilitated the creation of millions of additional jobs within the leather industry value chain. Findings shows that implementation of the scheme had led to massive investment in the leather sector, which has translated into more jobs for the citizens, as well as foreign exchange earnings.
During the last regime, a body known as Leather and Allied Products branch of Manufacturers Association of Nigeria (LAPAN) had called for the cancellation of the grant on the ground that the adoption of the scheme was causing job losses.
"NAHSD" is a grassroots organisation representing the interest of the ordinary Nigerians in the country, whose survival depended on activities in Hide and Skin value chain. It was a wrong impressions being conjured against the EEG scheme.
"The scheme is not a waiver, which can be easily abused, it is an incentive that only serious companies active in the export business can access based specifically on approved procedures.
"The provision of EEG to tanneries has boosted the economic activities of the entire Nigerian populace as millions of people have benefited from it right from the primary consumers up to secondary consumers. Worthy of note are animal farmers and the butchers who are at the tail end of the leather industry.
"The scheme has remedied the pains of abject poverty that exist in the North and add value to the economy by attracting international investment to the leather sector. Moreso, hundreds of thousands of new jobs have been added at the various levels of processes which involves buying, selling, preserving, transportation and exporting of finished leathers.
On a more tangible note, EEG had succeeded in lifting the country's non-oil earnings from $0.2 billion in 2000 to over $3.8 billion in 2017, according to the Federal Ministry of Trade and Investment.
Examining the closure of indigenous companies involved in shoe-manufacturing in the country, contrary to the claim, none of them were denied treated leather for production.
"The truth is that treated leathers are readily available in the market, but most of the operators of companies in foot wear sector are unable to access them, for reason said to be associated with the escalating cost of production.
The closure of some companies in the shoe-sector has more to do with their inability to compete with international competitors, as a result of production difficulties, which goes beyond denial of access to raw material.
Therefore, individuals advocating for the cancellation of the scheme should re-examine their position, as the cancellation would definitely lead to shedding of millions of direct and indirect jobs, which would be very disastrous for the economy.
According to him, Nigeria is not the only country in the world that is providing incentives for exporters, pointing out that many countries, particularly the emerging economies, are doing the same.
A case in point of companies that have benefited from the scheme are too numerous to mention. There are known companies in Kano that before the introduction of the scheme were only able to employ 50 workers, but today, as a result of the scheme, had increased the number of their employees to over 4,000 workers.
It is still difficult to understand, why these individuals are interested in the cancellation of a scheme that is not limited to only leather sector, but to all exportable commodities such as cocoa, sesame seed, among others that are sourced from all parts of the country, and not the North alone.
One fact that these agitators need to know is that Nigeria is not the only country in the world providing incentives for manufacturers. Countries such as China, India, Brazil, among others are providing various forms of incentives for manufacturers within their domain, despite having near excellent infrastructure.
