The Leather Product Manufacturers Association of Abia State (LEPMAAS) has decried the withdrawal of funding by the Bank of Industry (BoI), saying it could jeopardise Nigeria’s industrial progress.
The fund was to support businesses engaged in leather products like shoes, bags, and belts in Aba town of Abia state.
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The leather products manufacturing sector is arguably Nigeria’s largest employer of labour among all recognized Small and Medium-sized Enterprises (SMEs).
LEPMAAS President, Mazi Okechukwu Williams said the move was also unjust to Abia, stressing that BOI’s withdrawal from a funding arrangement with the members of LEPMAAS was harming Abia and Nigeria’s economy considering the number of artisans the sector employed.
“What BoI should do is to redesign the project with the Aba leather cluster because this is where the real thing is happening.”
He said that BoI, which is to fund about 1,000 businesses without a time frame, acted against wise counsel by withdrawing after funding only 21 businesses most of which had repaid their loans in full.
Williams said his association had several discussions with BOI who complained of low compliance to loan repayment.
He therefore called on the Federal Ministry of Industry, Trade and Investment and the management of BOI to investigate the matter to ensure BOI’s action did not harm the Aba leather sector.
Efforts made to reach BOI’s management failed as numbers made available for their contacts were not picked up when calls were placed.
