Those residing in Nigeria may think that the ongoing war in Sudan is none of their business, but it is. The civil war, which is now three months old, continues to linger and puts the lives and livelihoods of people in both countries at risk. Moreover, the negative impact of the war is subtly affecting Nigeria, especially its leather industry.
The armed conflict between the Sudanese Armed Forces and the paramilitary Rapid Support Forces, rival factions of Sudan’s military government, began on April 15, 2023. The clashes initially broke out in Khartoum, the capital city, and the Darfur region. Since then, the Sudanese economy has come to a halt, affecting neighbouring countries like Nigeria, which rely on Sudan for hide and skin.
Hide and skin are crucial raw materials for Nigeria’s shoe, clothing, and furniture businesses. Despite having some of the best hides and skin globally, Nigeria still imports these materials from Sudan and a few other countries. The main African countries from which Nigeria imports these commodities are Tanzania, Madagascar, and Sudan. Sudan stands as Nigeria’s third-largest import source. Other import partners include the Netherlands, China, Italy, Oman, Saudi Arabia, Turkey, and Lebanon.
In 2021, Sudan exported $6.81 million worth of goods to Nigeria. The main products exported were equine and bovine hides, tanned equine and bovine hides, and leather apparel. During the last 25 years, the exports of Sudan to Nigeria have increased at an annual rate of 44.9%, from $639,000 in 1996 to $6.81 million in 2021, according to the Observatory of Economic Complexity (OEC). Tanned equine and bovine hides are used to make leather goods, such as shoes, clothing, and furniture (upholstery).
As of 2021, Sudan had recorded large net trade with Nigeria in the exports of equine and bovine hides worth $6.8 million, machines ($7,260), and textiles ($3,890). Whereas, Nigeria had large net trade with Sudan in the exports of vegetable products ($3.37 million), instruments ($480, 000), and chemical products ($71800) in the same period. Thus, Nigeria imported more from the North African country than it exported.
Also, Trend Economy reported that the total value of raw hides and skins (other than fur skins) and leather Nigeria imported from the global market in 2021 totalled $69 million. As sales to Nigeria decreased by 44% in value terms compared to 2020, its global imports decreased by $54 million (as against $124 million worth of imports in 2020). Imports of raw hides and skins (other than fur skins) and leather accounted for 0.133% of the total import flow to Nigeria.
Tanned equine and bovine hides were the world’s 265th most traded products as of 2021, with a total trade of $15.3 billion. Between 2020 and 2021, the exports of tanned equine and bovine hides grew by 30.8%, from $11.7 billion to $15.3 billion. Trade in the commodity represents 0.072% of total global trade.
As of that period, the top exporters of equine and bovine hides were Italy ($2.89 billion), the United States ($1.68 billion), Brazil ($1.41 billion), China ($844 million), and Germany ($626 million). Whereas, the top global importers were China ($2.82 billion), Italy ($1.76 billion), Vietnam ($1.37 billion), Hong Kong ($631 million), and the United States ($616 million).
