Countries such as India, South Korea, Romania, Italy have been discovered by the Nigerian Export Promotion Council (NEPC) as destinations where leather gotten from Nigerian goats, sheeps, rams and lambs can be competitively sold.
According to the NEPC, exporters of leather will do well if they look into competing with India to increase market 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.
Taking the council’s advise could attract as much as $23.5 million as reports from the council note that export of prepared sheep/lamb and goat leathers has the potential of attracting that much into Nigeria in the next two years.
Estimated income from the export of prepared sheep/lamb, according to the NEPC is set at $6.3 million while $17.2 million is the estimated income from export of prepared goat leathers from now to 2021.
For goat leather, the largest untapped potential for Nigeria’s export can be found in Morocco, followed by Turkey and Vietnam. Findings show that Italy is currently Nigeria’s largest export destination (and a major competitor) for prepared leather of goats, being 68 percent of all Nigerian exports).
NEPC also reports that estimated untapped potential in absolute value is largest in the Moroccan market, where Nigeria is not yet present. Spain is Nigeria’s largest competitor and has a slight advantage on tariffs while Turkey and Germany are existing markets for Nigeria and together have high estimated untapped potential of $4.6 million, ranking second and third in terms of estimated untapped potential.
The National Bureau of Statistics (NBS) reported that in the first quarter of 2019, Nigeria exported $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 $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. Between 2013 and 2017, Vietnam market experienced 1 percent growth in imports of prepared leather of sheep/lamb. The Republic of Korea is the second largest market based on untapped potential – $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 $516,000 and $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 percent. Nigeria currently has no exports to Romania, though NEPC has observed that there is considerable untapped potential of about $431,000.
Energy December 19, 2019
Frontpage October 24, 2019