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Tag: Yikodeen

  • NCDMB’s support boosts Yikodeen’s expansion

    NCDMB’s support boosts Yikodeen’s expansion

    Following its recent strategic investment from Aruwa Capital Management and successful participation at the Nigerian Oil & Gas Opportunity Fair (NOGOF) in Bayelsa, Yikodeen, Nigeria’s leading indigenous footwear manufacturer, will officially unveil its newly expanded manufacturing facility at a grand recommissioning event on June 24, 2025. The unveiling represents a landmark achievement in Nigeria’s local content promotion by NCDMB and positions Yikodeen as home to the most technologically advanced safety footwear production facility in West Africa.

    The recommissioning ceremony, to be held at the company’s manufacturing headquarters in Lagos, will reveal the culmination of months of intensive equipment installation, facility upgrades, and workforce training. Industry leaders, government officials, and media representatives have been invited to witness this significant step towards a more self-reliant and globally competitive Nigerian manufacturing sector, with Yikodeen leading the transformation.

    As a testament to the Nigerian Content Development and Monitoring Board’s unwavering support for local manufacturing and capacity development, the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe has been duly appointed as the Special Guest of Honour at the recommissioning of the Yikodeen Factory. His presence at the event will not only underscore the Board’s commitment to deepening Nigerian content in the oil and gas industry but also further solidify the strategic partnership between NCDMB and Yikodeen as the only approved safety footwear manufacturer and supplier in the sector.

    “This facility represents a new chapter of possibilities not just for Yikodeen, but for Nigerian manufacturing as a whole,” said Yinka Shamsideen, Founder and CEO of Yikodeen. “What guests will see on June 24 is proof of what’s possible when we bet on ourselves, world-class ‘Made-in-Nigeria’ products that compete globally while addressing local needs. Our recent success at NOGOF demonstrates the industry’s confidence in our capabilities to serve Nigeria’s most critical sectors.”

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    The redesigned facility accommodates specialized production lines dedicated to multiple product categories, enabling simultaneous manufacturing with category-specific expertise across industrial safety footwear suitable for different industries including oil and gas, construction, manufacturing, and mining, back-to-school shoes designed for educational institutions, military and paramilitary footwear meeting rigorous security and defense sector demands, and athletic footwear under the popular Yiko Plus brand for sports and casual wear.

    A major breakthrough for the Nigerian manufacturing sector, the facility features complete sole manufacturing capability, reducing dependency on imported components and ensuring quality control from raw materials to finished products. The on-site standard testing laboratory ensures all products meet or exceed ISO and ASTM international standards, providing customers with certified quality assurance. Demonstrating commitment to sustainable manufacturing, the facility operates on alternative power sources, ensuring consistent production capacity while reducing environmental impact and operational costs.

    Complementing these technical advancements, an in-house training center supports continuous upskilling of the workforce, ensuring Yikodeen’s team remains at the cutting edge of footwear manufacturing technology and techniques.

    With these upgrades, Yikodeen will increase its production capacity from 500 pairs daily to a projected 2,500 pairs at full operation, making it the largest footwear manufacturer in West Africa. This tenfold increase in capacity is expected to create approximately 200 new jobs, bringing the company’s total workforce to nearly 500 skilled employees. Central to Yikodeen’s expansion strategy is a strong commitment to women’s and youth empowerment, ensuring these demographics are pivotal in its employment strategy, creating meaningful opportunities that strengthen local communities while building a diverse, skilled workforce capable of operating advanced manufacturing technology.

    “This facility represents what’s possible when homegrown businesses receive the right investment and support,” noted Adesuwa Okunbo Rhodes, Founder and Managing Partner of Aruwa Capital Management. “Yikodeen exemplifies how strategic capital combined with visionary leadership can transform industries and create a significant economic impact.”

    The recommissioning event will include guided tours of the production facilities showcasing over a thousand machines and equipment, live demonstrations of the new manufacturing processes across all product lines.

    Yikodeen is an indigenous Nigerian footwear manufacturer committed to producing high-quality footwear that meets the diverse needs of both B2B and B2C audiences. Since 2016, Yikodeen has grown from producing 20 pairs of footwear daily to a current capacity of 500 pairs, with plans to reach 5,000 pairs daily following its facility expansion

  • Aruwa Capital stakes $1.5m on Yikodeen’s expansion

    Aruwa Capital stakes $1.5m on Yikodeen’s expansion

    •Nigerian firm becomes West Africa’s largest safety footwear manufacturer

    Yikodeen, a leading manufacturer of safety footwear and the sole NCDMB-certified supplier to the oil and gas sector, has secured a $1.5 million investment from Aruwa Capital Management to significantly expand its production capacity.

    This strategic partnership represents a major leap forward in Yikodeen’s mission to build world-class production capabilities and scale its footprint across the region.

    The investment from Aruwa Capital’s sophomore fund, Aruwa Capital Fund II, will fund Yikodeen’s factory recommissioning and capacity expansion. The firm was the sole investor in this round, underscoring its confidence in Yikodeen’s manufacturing excellence and growth potential. This capital injection will significantly accelerate the company’s growth trajectory, which has already seen impressive 10x revenue growth with gross profit margins exceeding 50%, all while maintaining zero debt.

    “This partnership with Aruwa Capital represents more than just financial investment; it’s a vote of confidence in the company’s manufacturing excellence,” said Shamsideen Atunde, Founder and CEO of Yikodeen. “With this support, we’re positioned to transform our production capabilities, increase our output tenfold, expand our product lines beyond safety footwear, and generate significant economic value through job creation and import substitution.”

    Since its founding in 2016 producing just 20 pairs of footwear daily, Yikodeen’s operations have achieved substantial scale with up to 500 pairs produced daily.

    The company has established itself as a trusted supplier to Nigeria’s most demanding industries, highlighted by its delivery of over 30,000 pairs of safety boots to the NLNG Train 7 project. Projections indicate that the investment will enable further expansion to 2,500 pairs daily across multiple product categories once its newly recommissioned facility reaches full operational capacity, positioning Yikodeen as the largest safety footwear manufacturer in West Africa.

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    According to Statista, the Nigerian footwear market is estimated at $2.1 billion in 2024 and projected to reach $2.6 billion by 2029, with the safety footwear segment alone valued at $700 million. Yikodeen is strategically positioned to capture a significant share of this growing market, leveraging its unique status as one of the sole indigenous manufacturers licensed to supply safety footwear to Nigeria’s oil and gas industry.

    Adesuwa Okunbo Rhodes, Founder and Managing Partner of Aruwa Capital Management, emphasized the significance of the strategic investment: “Yikodeen exemplifies the type of business capable of driving meaningful economic transformation in Nigeria. Their manufacturing excellence, impressive certifications from standards organizations, and remarkable growth trajectory make them an ideal investment partner. We’re excited to work with Yikodeen to redefine Africa’s footwear landscape while supporting Nigeria’s shift from import dependency to manufacturing self-sufficiency.”

    The investment will drive a comprehensive transformation of Yikodeen’s manufacturing capabilities through several strategic initiatives. Funding will enable the acquisition of advanced production equipment, enhancing both precision and efficiency across all production lines while increasing safety boots production capacity by 10x. The capital will also support the expansion of Yikodeen’s factory, making it the largest safety footwear production facility in West Africa. Furthermore, advanced quality control systems, including digital monitoring and automated inspection technologies, will ensure world-class standards across production lines.

    Beyond its commercial objectives, Yikodeen demonstrates a deep commitment to social impact and gender diversity. The company currently employs over 80 skilled workers with 61% female representation among factory workers and 33% of senior management positions held by women. In line with Aruwa’s gender lens investing strategy, Yikodeen will continue implementing family-friendly policies and fair wage practices to ensure inclusivity. The expansion is projected to create approximately 200 additional skilled jobs, providing valuable employment opportunities while developing technical expertise within Nigeria’s workforce.

    Through its annual vocational training programmes, Yikodeen has equipped over 200 individuals with leatherwork skills, driving community development and fostering job creation. As part of its broader impact efforts, the company also donates more than 1,000 pairs of shoes each year to children in underserved communities. The investment will also support the implementation of circular economy practices, including a footwear recycling program that aims to reduce environmental impact while creating additional value streams.

    Industry analysts note this investment comes at a critical time for Nigerian manufacturing, as government policies increasingly encourage local production. “By investing in domestic manufacturing capacity, we’re not just building a company, we’re contributing to Nigeria’s economic sovereignty,” added Atunde. “Every pair of shoes we make represents forex savings, local job creation, and craftsmanship that rivals anything found in advanced manufacturing markets. Our ISO, SON, and industry-specific certifications prove that Nigerian manufacturing can meet global standards.”

    The recommissioned factory is scheduled to be unveiled at a major event on June 24, 2025, with production expected to reach new capacity levels by Q3 2025.