The Infrastructure Concession Regulatory Commission has presented a Full Business Case Compliance Certificate to the Nigeria Correctional Service for its proposed Shoe and Garment Factories.
The proposed factories will be in Aba, Abia State and Janguza Tannery Factory in Kano state under a Public Private Partnership arrangement.
According to reports, the textile, apparel and footwear sub-sector remains the second largest contributor to Nigeria’s manufacturing sector after food, beverage and tobacco.
In 2019, the garment and footwear industry had a negative Gross Domestic performance.
The industry declined by 0.09%, the second time the industry has experienced such negative growth in the last four years.
One reason behind the industry’s weak growth is the disintegration of its local value chain.
There have been many attempts to revitalise this sector in Nigeria, especially in the production of leather materials, and Garments for security agencies, ministries and departments.
A review of the Full business case of the Nigerian Correctional Service was recently carried out by the infrastructure concession regulatory commission.
Upon conclusion, it was issued a compliance certificate for the take-off of factories for production of shoes and garments.
The project is expected to bring an immediate investment of over 5 billion naira naira made of up 80% debt and 20% equity with zero financial contribution by the government.