The Nigerian leather industry is rapidly emerging as a cornerstone of the country’s non-oil export sector. Known for its high-quality products and rich craftsmanship, this industry not only boosts export revenues but also significantly contributes to job creation. As global demand for Nigerian leather continues to grow, the sector is poised to play a crucial role in the nation’s economic diversification and development.
Mrs. Femi Olayebi, Creative Director of FemiHandbags and Founder of the Lagos Leather Fair, often regarded as one of Nigeria’s leading stakeholders, who has played a pivotal role in championing the leather industry, shares her inspiring journey with us on building her brands. What started as a personal project has metamorphosed into a highly sought-after enterprise, with an impactful mission at its core: empowering other Nigerian entrepreneurs to hone their unique skills through the annual Leather Fair.
As an organisation devoted to celebrating indigenous Nigerian businesses, we hope this interview provides insight, awakens passion, and inspires the courage to push against all odds.
“My vision is for the Nigerian leather industry to become globally recognized for the quality of its output, not just in terms of finished leather goods, but also in terms of ensuring that beyond the usual production of raw leathers, post-tanning facilities are put in place to meet international standards”.
Remita: What inspired you to enter the leather industry, and how long have you been in business?
Mrs. Olayebi: My journey into designing and making bags was completely inspired by a personal need way back in 1992. As an expectant mum, I needed to buy a diaper bag that was both functional and stylish but couldn’t find one I liked or that met my expectations. And so, being the restless soul that I am, I decided to make one myself, even though I had no prior knowledge of bag-making. Orders started rolling in, and before I knew it, I had registered a business and began to run one the best way I knew how. As the business progressed over the years, I ventured into using leather and remodelled my business to differentiate the different arms – the corporate line, and the bespoke, luxury handbag line, which I renamed FemiHandbags. Three decades later and counting, FemiHandbags has grown to become one of Africa’s best-known handbag brands, reflecting the values of excellence, integrity and high craftsmanship that I hold very dear.
Remita: What are some of the biggest challenges you have faced in building your leather business, and how have you overcome them? Are these challenges still prevalent today?
Mrs. Olayebi: Some of the biggest challenges have been an unreliable supply chain, a lack of high-quality raw materials and hardware, and more than anything else, finding skilled artisans who can meet the very high standards I envision for my brand. A lack of proper infrastructure, limited access to funding and inadequate industry support have certainly also made scaling difficult, but what we have done over time is to generally seek ways of overcoming these challenges. We have invested in training local artisans, bringing in skilled artisans from other West African countries, and have also remodelled our work-flow process to enhance our production. Building very strong relationships with suppliers outside the country has also been crucial to our growth; however, challenges such as fluctuating foreign exchange rates which affect material costs, remain, while the industry is still in strong need of technical expertise, know-how and industry knowledge.
Remita: How do you ensure consistency and quality in your leather goods?
Mrs. Olayebi: I believe it’s a mindset thing. Excellence is our watchword, and is ingrained in our DNA at the office and the factory. And so because we have a reputation to protect, we ensure consistency and quality in everything we do – from the meticulous selection of raw materials and hardware to the finest details during the prepping and production processes. Our artisans also undergo continuous training to maintain high standards of craftsmanship, while we implement stringent quality control measures at every stage of production, from concept to design to final inspection, ensuring that every piece meets our standards.
Remita: What marketing strategies have you found most effective in reaching your target audience, growing your customer base, and making sales?
Mrs. Olayebi: Storytelling has been one of the most effective marketing strategies of the FemiHandbags brand. By sharing the journey behind FemiHandbags, the craftsmanship, and the inspiration behind each collection, we connect emotionally with our audience. Social media has also played a crucial role in reaching a wider audience and showcasing designs. Attending international trade shows has expanded our reach and provided a few trade opportunities abroad. Additionally, hosting private and a series of exclusive events like Bags On the Menu has been instrumental in creating brand awareness and driving sales through direct interaction with our repeat and potential customers.
Remita: What are some of the current trends in the Nigerian leather industry? How do you stay up-to-date on these trends and incorporate them into your products?
Mrs. Olayebi: The Lagos Leather Fair initiative created by FemiHandbags has succeeded in shining a spotlight on the potential of the Nigerian leather industry, created greater awareness of what’s possible within the industry, and helped to promote local talent and Made-in-Nigeria like never before. There’s definitely a trend towards more innovative and contemporary designs that blend traditional craftsmanship with modern aesthetics and consumers are leaning towards buying from Nigerian brands more than say seven years ago before LLF because these trends are being reflected in their designs. To stay up-to-date, I attend international trade shows and participate in industry workshops. We are also continuously researching and incorporating new trends into our products to meet market demands.
Remita: In your experience, how can fintech solutions like digital payments or financial literacy programs benefit small and medium-sized enterprises (SMEs) in the leather industry?
Mrs. Olayebi: Fintech solutions, such as digital payments, offer convenience and security and make transactions smoother for SMEs. Financial literacy programs can also equip business owners with essential knowledge on managing finances, budgeting, and investments. These tools can significantly enhance business efficiency, reduce transaction costs, and very importantly, open up new markets by making it easier to engage not only in e-commerce but also for cross-border and international payments which many SMEs struggle with.
Remita: Do you utilize any technological tools or software in your business for design, production, or sales? How has technology helped your leather business grow?
Mrs. Olayebi: Yes, absolutely. So, for design we use tools such as Adobe Illustrator and Canva to conceptualise and experiment with a whole range of design ideas, create realistic 3D models of our bags and come up with our detailed product spec sheets. We have also created a tailor-made ERP system in-house to enable us integrate our business processes and streamline our operations – from inventory management, invoicing and receipting to procurement and production planning. On the sales front, our website and social media platforms have helped expand our reach, allowing us to connect with customers globally, increase brand awareness and analyse engagement metrics. We also use different data analytics tools to help analyse sales data and customer behaviour, and this helps to a large extent in guiding strategic decisions regarding product development, pricing etc. Technology has most definitely been instrumental in enhancing efficiency, tracking material usage, reducing costs, increasing our market presence and making data-driven decisions.
Remita: What is your vision for the future of the Nigerian leather industry? What are you excited about, and what challenges do you see on the horizon?
Mrs. Olayebi: My vision is for the Nigerian leather industry to become globally recognized for the quality of its output, not just in terms of finished leather goods, but also in terms of ensuring that beyond the usual production of raw leathers, post-tanning facilities are put in place to meet international standards. I’m excited about the growing interest in Made-in-Nigeria leather goods, and the potential for exposure and international expansion. However, challenges such as inadequate infrastructure, limited access to funding, and the extreme need for more skilled artisans remain. Addressing these challenges will require concerted efforts from industry stakeholders, the government and an intentional effort on the part of policy makers to give players like us a seat at the ‘decision-making’ table.
Remita: The Lagos Leather Fair has grown significantly since its inception. What role do you think sponsors like Remita have played in that success?
Mrs. Olayebi: Sponsors like Remita have played a crucial role in the success of the Lagos Leather Fair by providing essential financial support and resources. Their involvement, as a major player on the Nigerian financial scene, has certainly provided a certain level of credibility for the initiative. It has also enabled us to scale the event, attract more exhibitors, and enhance the overall experience for attendees. Their support also underscores the importance of collaboration in driving industry growth.
Remita: From your perspective, how has Remita’s payment solutions specifically impacted businesses, especially within the leather industry, and what are you looking forward to in the near future?
Mrs. Olayebi: Remita’s payment solutions have streamlined transactions for businesses, and made financial management processes speedier and more efficient. They have particularly benefited SMEs in by making it easier to manage cash flow and conduct transactions securely. Looking ahead, I am hopeful that they can also provide more integrated payment solutions that can further simplify B2C transactions not just locally, but internationally.
Remita: What is the role of the leather subsector in the manufacturing industry and the larger Nigerian economy?
Mrs. Olayebi: The leather sub-sector is a crucial part of Nigeria’s non-oil exports, and contributes significantly to job creation and export revenues in the country. It is estimated that Nigeria produces about 40 million square feet of leather annually – in fact, the country’s leather products are highly sought after in international markets. It is also estimated that the industry employs over 700,000 workers directly and indirectly in various capacities along the supply chain. Nigeria is one of the largest producers of leather in Africa, and in 2019, leather exports were valued at $800 million. This subsector can therefore be a key driver of Nigeria’s economic growth and development.
Remita: What is the role of government policies in boosting the leather industry and what policies do you believe are required?
Mrs. Olayebi: Relevant government policies can play a crucial role in providing the necessary support and infrastructure for the leather industry. For starters, policies aimed at funding research and development (R&D) pertaining to raw materials sourcing to machinery and hardware sourcing to capacity building, scaling, and the efficient production of finished goods will help drive innovation and significantly boost industry growth. Policies that facilitate access to funding and access to new markets, provide tax incentives, and support training programs for the industry are essential. Additionally, policies that can help reduce the costs of importing the necessary technology and modern machinery to improve production efficiency and product quality should be put in place. Finally, favourable policies that encourage local production and promote locally produced leather goods, and reduce import dependency should be implemented.
