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Improper export records lead to loss of revenue

05
Sep '09
Maintaining improper records of exported products from Aba, Abia State, has led the Federal Government to face yearly loses of above N1.5 billion from leather exports, said Association of Leather and Allied Industrials of Nigeria (ALIN), Aba branch.

The government should check the activities of Nigeria based Chinese leather manufacturers who export Nigerian leather to China and other parts of the world without following the usual process of export documentation, stated the National Secretary of ALIN, Mr. Ken Anyanwu.

Around 200,000 Nigerian manufacturers of various leather products who are the members of ALIN have not been able to break the Chinese cartel, which does not pay necessary duties to the Federal Government while exporting leather products.

On account of the poor tracking process on export activities, leather goods manufactured in Aba are being exported daily without any government record. Over a million pairs of shoes or bags each of an average cost of N 1,500 are being exported to various West as well as East African countries, said Mr. Anyanwu.

The only tannery in Kano-Fata Tannery EPZ that was supplying leather to local manufacturers of Nigeria had been bought by the Chinese, who now export leather to other parts of world from Nigeria, compelling local leather manufacturers to re-import the same, on account of this, the cost of locally manufactured leather products, shoots up.

He further admitted that Aba manufactures both high and low quality leather products, wherein the low quality products lead the good ones. The association now has the only option of importing cheap synthetic leather from China to manufacture lower quality shoes and bags and that of high quality leather from Italy to produce expensive goods.

In order to find out a solution for the problems related to leather exports, Mr. Anyanwu challenged the Federal and the State Government to come down to the grass-root level to see the problems that the manufacturers are facing.

Fibre2fashion News Desk - India


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