Export of prepared sheep and goat leathers has the potential of attracting about US$23.5 million into Nigeria in the next two years, Daily Trust can report.
Information from the Nigeria Export Promotion Council (NEPC) showed that Nigerian exporters can make about $6.3 million from export of prepared sheep/lamb and US$17.2 million from export of prepared goat leathers from now to 2021.
The National Bureau of Statistics (NBS) reported that in the first quarter of 2019, Nigeria exported US$5.78 million worth of prepared goat leather to Spain, Italy, India, Portugal and China.
However, NEPC reports on promising markets for Nigerian exporters to explore show that Nigeria can earn more foreign exchange in both goat and sheep leather exports.
Analysis of NEPC’s export potential information showed that the largest potential for prepared leather of sheep/lamb from Nigeria can be found in Vietnam, followed by Republic of Korea, and then Turkey.
Further analysis showed that estimated untapped potential in absolute value is largest in the Vietnamese market, at US$2.2 million.
Findings show that Nigeria currently does not export to Vietnam as India is Nigeria’s largest competitor in Vietnam and India has an advantage on tariffs and location.
Note that between 2013 and 2017, Vietnam market experienced 1 per cent growth in imports of prepared leather of sheep/lamb.
The Republic of Korea is the second largest market based on untapped potential – US$1.3 million – although NEPC records showed that just like Vietnam, Nigeria does not export there yet.
Italy is Nigeria’s largest competitor for exports to South Korea and also has a slight advantage on tariffs.
Turkey and France rank 3rd and 4th in terms of estimated untapped potential, which are US$516,000 and US$450,000 respectively.
Turkey is Nigeria’s 6th largest current destination, whereas France ranks 13th. France reached significant average annual growth over the past 5 years of 3 per cent.
Nigeria currently has no exports to Romania, though NEPC has observed that there is considerable untapped potential of about US$431,000.
“Look into competing with India to increase share in Vietnam. Try to compete with Italy to increase share in Turkey and France. These are existing markets for Nigeria offering estimated untapped potential. Start exploring increase of exports to South Korea and Romania,” NEPC advised exporters.