Export of prepared sheep/lamb and goat leathers has the potential of attracting about $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 $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 $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.
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 – $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 per cent.
Nigeria currently has no exports to Romania, though NEPC has observed that there is considerable untapped potential of about $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.
Meanwhile, in terms of prepared 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 per cent of all Nigerian exports).
However, NEPC reveals that “there is no estimated untapped potential left there. It is advised to start exploring other export markets.”
NEPC 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.
Vietnam and Romania are both practically new markets and have considerable untapped potential of $2.5 million and $2.2 million respectively while Vietnam and Indonesia are the only countries with untapped potential that have also seen slight import growth in the past five years.