As the debate over the desirability of Export Expansion Grant (EEG) for Nigerian exporters intensifies, the National Association of Hides and Skin Dealers (NAHSD) has voiced opposition to cancellation of the scheme, saying it would be injurious to the nation's economy.
The association argued that millions of Nigerians currently employed within the hides and skin value chain would be made jobless, if the suggestion for its cancellation is accepted by the Federal Government.
Last week, the Leather and Allied Products branch of Manufacturers Association of Nigeria (LAPAN) called for the cancellation on the ground that the adoption of the scheme is causing job losses.
Ali Abdu Gezawa, chairman of the hides and skin dealers association said contrary to insinuations, the implementation of the scheme had actually facilitated the creation of millions of additional jobs within the leather industry value chain.
A statement issued by the group quoted Gezawa as saying that the facts in possession of the body shows that the implementation of the scheme had led to massive investment in the leather sector, which has translated into more jobs for the citizens, as well as foreign exchange earning.
"We find it difficult to understand, why these individuals are interested in the cancellation of a scheme that is not limited to only leather sector, but to all exportable commodities such as: cocoa, sesame seed, among others that are sourced from all parts of the country, and not the north alone," it said.
It said, "The scheme is not a waiver, which can be easily abused, it is an incentive that only serious companies, active in the export business, can access based specifically on approved procedures.
"The provision of EEG to tanneries has boosted the economic activities of the entire Nigerian populace as millions of people have benefited from it right from the primary consumers up to secondary consumers, worthy of note are, animal farmers and the butchers who are at the tail end of the leather industry."
The scheme has remedied the pains of abject poverty that exist in the north and added value to the economy by attracting international investment to the leather sector, the group further argued.
"On a more tangible note, EEG had succeeded in lifting the country's non-oil earnings from $0.2 billion in 2000 to over $2.8 billion in 2011, Gezawa explained, citing the Federal Ministry of Trade and Investment as its source.
Commenting on the closure of indigenous companies involved in shoe-manufacturing in the country, Gezawa said contrary to the claim, none of them were denied treated leather for production.
"The truth is that the treated leathers are readily available in the market, but most of the operators of companies in foot wear sector are unable to access them, for reason said to be associated with the escalating cost of production.
"The closure of companies in the shoe-sector has more to do with their inability to compete, with international competitors, as a result of production difficulties, which goes beyond denial of access to raw material," it concluded.
DailyTrust