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Nairametrics
Home Business News

Leather exports from Lagos to generate N387.5 billion annually – Sanwo-Olu 

Caleb Obiowo by Caleb Obiowo
August 23, 2025
in Business News
Governor Sanwo-Olu to be honoured at Nairametrics Capital Market Awards for positioning Lagos as West Africa’s financial hub 

Governor of Lagos State, Mr. Babajide Sanwo-Olu,

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Lagos has projected annual export earnings of N387.5 billion from the newly inaugurated Industrial Leather Hub once it becomes fully operational, Gov. Babajide Sanwo-Olu said.

The governor made the disclosure on Saturday at the commissioning of the facility in Matori, Mushin, adding that the hub would position Lagos as the leather logistics capital of West Africa, according to the News Agency of Nigeria (NAN).

He described the project as a crucial step in Nigeria’s efforts to diversify the economy beyond oil.

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“Gov. Babajide Sanwo-Olu of Lagos State says annual export earnings exceeding $250 million (₦387.5 billion) are projected when the Lagos Industrial Leather Hub becomes fully operational.

“Sanwo-Olu made this known on Saturday during the inauguration of the hub at Matori, Mushin, Lagos,” the NAN report read in part.

Sanwo-Olu said the hub is expected to create more than 10,000 jobs within three years, with 70% reserved for women and youth. He added that over 150,000 artisans would have access to advanced training and start-up support to strengthen competitiveness across the leather value chain.

More insights  

The Lagos State governor credited Nigeria’s First Lady, Sen. Oluremi Tinubu, for inspiring the initiative through her focus on women and youth empowerment, while also acknowledging the Council for Leather Exports and private investors for backing Lagos as Africa’s next leather frontier.

  • The governor pledged continued state support to safeguard and expand the hub through transparent regulation and infrastructure upgrades.
  • He said the facility would be integrated with fashion districts, e-commerce platforms, and the Lagos Blue Line Rail to enhance logistics for goods and people.

Sanwo-Olu added that the hub would drive innovation, attract investments, and raise the living standards of Lagosians, stressing that its true success would be measured by the number of households lifted above poverty.

What you should know  

Nigeria’s once-thriving leather industry collapsed largely due to inadequate infrastructure, forcing many producers out of business and leaving the country unable to compete with global players like China, Brazil, and India.

Prof. Mohammed Yakubu, Director-General of the Nigerian Institute of Leather and Science Technology (NILEST) and Chairman of the National Leather Policy Implementation Committee, said affordable power and modern processing facilities remain critical to reviving the sector.

  • In November 2024, Yakubu announced that NILEST would establish mini tanneries in every state to process hides and skins into finished leather.
  • According to him, each tannery cluster would handle between one to five tonnes of leather weekly, helping to reduce excessive domestic consumption and redirect surplus production to major markets in the South-West, South-East, Jos, and Kano. However, as of August 2025, there has been no official update on whether these mini tanneries have actually been established.

Tanneries are facilities where animal hides and skins are processed into leather through chemical and mechanical treatments. They form the backbone of the leather industry, as the quality of tanning determines the durability, texture, and market value of finished leather products.

The inauguration of the Lagos Industrial Leather Hub aligns with this vision, providing advanced infrastructure, training, and logistics support.


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Tags: Babajide Sanwo-OluLeather exports
Caleb Obiowo

Caleb Obiowo

Caleb Obiowo is a graduate of Urban and Regional Planning from the University of Uyo. At Nairametrics, he covers transport and logistics in Nigeria, along with real estate, construction, and aviation. He focuses on delivering clear, easy-to-understand stories and often digs deeper into industry issues through conversations with key players.

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