Nigeria'S Leather Products Industry Is In Financial Difficulty, Using Low Quality Raw Materials.

The industrial town in Southeast Nigeria.

Belt factories lack financing channels, and can only rely on their own funds to support daily production.

Because of insufficient funds, these factories can only produce goods with low quality raw materials and processing materials.

In addition, although these factories are numerous, they are relatively dispersed and have not formed large-scale industrial clusters.

There are about 80000 Aba cities in the southeast of Nigeria.

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The manufacturer of suitcases.

In recent years, due to lack of funds and low quality of raw materials, these manufacturers are in trouble.

It is reported that the low quality raw materials used by these factories are mainly from China.

These factories are also being squeezed by cheap products from Asia, coupled with backward infrastructure and production facilities, lack of large-scale industrial clusters, and many factories are in trouble.

"We need financial help in our industry," said Nnabugwu Osondu, Secretary of the bags and leather belt Association of Asia. "We often seek loans from banks, but banks always offer high conditions. These conditions are often not available to us because most of us are small and medium-sized enterprises.

If the funds are enough, our 80000 member enterprises can employ at least 10 more workers, which means creating 800 thousand jobs and pushing the country forward.

The survey found that many factories often use cheap and diluted chemical raw materials because they can't afford advanced materials in Italy or Holland.

Small and medium-sized enterprises need to raise funds themselves and have no way to borrow money from banks, which is why they can not use better raw materials.

Financial institutions in the Aba area are very demanding in terms of loans, not only for collateral, but also for 20%-35%.

"Many companies use synthetic leather to make goods. These materials are made of plastic leather, mainly imported from China, because these factories can not afford expensive leather imported from northern Nigeria and Europe.

If we can get loans, we can also use high quality chemical materials and high quality leather to make bags, belts, leather shoes, etc., and we can also enter our products into the international market. "

China and India have established industrial clusters to enable relevant enterprises to enjoy the benefits brought by economies of scale. They share resources and reduce costs.

However, the leather industry in the Aba area has been spread to five regions, including Powerline, Shoe Plaza and Imo Avenue.

Industrial clusters can help companies and countries enhance their competitiveness.

At present, leather shoes, bags and belts produced in Aba area are popular in Togo, Cameroon, Mali and other countries.