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Nigeria’s Leather Industry Loses Billions as Ponmo Trade Drains Raw Materials

byStephen Abebor
July 13, 2026
in Business, Economy
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Nigeria’s Leather Industry Loses Billions as Ponmo Trade Drains Raw Materials
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Nigeria’s ambition to build a globally competitive leather industry is increasingly colliding with the country’s growing appetite for ponmo, the popular delicacy made from processed cow hide, creating a costly economic dilemma that is limiting industrial growth and export potential.

Industry data indicate that Nigeria recorded a ₦173.04 billion trade deficit in the hides and skins sector during the first half of 2025, underscoring the widening gap between domestic demand for leather products and the availability of raw materials for manufacturers.

The challenge comes despite Nigeria’s substantial livestock base. According to official livestock estimates, the country has about 54.81 million cattle, providing what should be a strong foundation for leather production. Yet much of the country’s cow hide is diverted into the food market rather than processed into leather for footwear, bags, upholstery and other value-added products.

The Leather and Science Technology Institute (NILEST) estimates that as many as 100,000 cattle are slaughtered daily in Lagos, while fewer than 50 industrial tanneries currently operate across the country. The imbalance has constrained the supply of hides needed by manufacturers, forcing many businesses to rely on imported raw materials or operate below capacity.

The economic implications are significant. Market estimates value Nigeria’s leather goods industry at $2.79 billion in 2024, with projections suggesting the market could approach $5 billion by 2033 if supply constraints are addressed. Industry stakeholders argue that expanding domestic leather processing could create thousands of manufacturing jobs, boost exports and reduce dependence on imported finished leather products.

The popularity of ponmo, however, reflects broader economic realities. With meat prices rising sharply in recent years, many households have turned to cow hide as a relatively affordable source of protein, increasing demand and pushing the price of raw hides from about ₦13,000 to as much as ₦50,000, according to industry estimates.

Public health officials have also expressed concerns over some processing methods reportedly used in preparing cow hides for consumption, warning that exposure to chemicals such as formalin and the use of diesel during processing may pose health risks. Authorities have further advised against consuming hides from animals during anthrax outbreaks to reduce potential health hazards.

In response, NILEST is promoting a “Wear, Not Eat Your Leather” campaign aimed at redirecting more hides into industrial processing. The institute also plans to establish mini-tanneries across Nigeria’s 36 states to purchase hides directly from traders, creating an alternative market that could strengthen local leather manufacturing.

Whether the initiative succeeds will depend on balancing industrial policy with household realities. For millions of Nigerians, ponmo remains an affordable food option during a period of elevated living costs. Until incomes improve and alternative raw material supply chains emerge, the competition between the dining table and the factory floor is likely to remain one of the biggest obstacles to unlocking Nigeria’s estimated $5 billion leather industry potential.

Tags: Hides and skinsIndustrializationLeather exportsLeather manufacturinglivestockManufacturing SectorNigeria leather industryNigerian EconomyNILESTPonmoTanneriesTrade deficit
Stephen Abebor

Stephen Abebor

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