Nigeria is poised to become a major player in the burgeoning global halal market, a sector estimated to be worth $7.7 trillion. This ambitious goal is being pursued through a newly forged cooperation agreement with Saudi Arabia’s Halal Products Development Company (HPDC), a subsidiary of the Saudi Public Investment Fund. This landmark agreement, signed at the Makkah Halal Forum in Saudi Arabia, aims to facilitate investment, technical cooperation, and enhanced market access for both nations across a range of key sectors. These sectors encompass food production, pharmaceuticals, finance, and livestock, all areas where halal certification plays a critical role in meeting the specific requirements of Muslim consumers worldwide. The agreement signifies a strategic move by Nigeria to diversify its economy and capitalize on the immense potential of the halal market.
Vice President Kashim Shettima, represented at the signing ceremony by Senator Ibrahim Hassan Hadejia, Deputy Chief of Staff to the President, hailed the partnership as a transformative opportunity for Nigeria. He emphasized the government’s commitment to leveraging this collaboration to generate employment opportunities, attract foreign investment, and diversify the nation’s economy, aligning with President Bola Tinubu’s “Renewed Hope Agenda.” The agreement resonates with the administration’s focus on economic growth and development, seeking to tap into a global market that transcends geographical and religious boundaries. This strategic partnership is expected to propel Nigeria’s economic diversification efforts and position the nation as a key player in the global halal economy.
The signing ceremony, attended by high-ranking officials from both countries, underscores the significance of the agreement. Among those present were Saudi Arabia’s Minister of Commerce, Dr. Majid bin Abdullah Al-Qasabi; the Chairman of the Makkah Halal Forum’s Organising Committee, Fawaz bin Talal Al-Harbi; and the Chairman of Makkah Chamber of Commerce and Industry, Abdullah bin Saleh Kamel. The presence of such dignitaries highlights the importance both nations attach to this partnership. The agreement is not merely a symbolic gesture but a concrete step towards fostering economic cooperation and mutual benefit. It signifies a shared vision for growth and development, leveraging the strengths of both nations to achieve common economic goals.
Aliyu Sheriff, Special Assistant to the President on Export Promotion, highlighted the agreement’s alignment with Nigeria’s burgeoning Islamic finance sector. He noted the success of Sukuk bonds for infrastructure financing and the establishment of Islamic banks like Jaiz Bank, Taj Bank, and Lotus Bank as indicators of the sector’s growing potential. Sheriff further emphasized the support from institutions like the Islamic Development Bank and the Arab Bank for Economic Development in Africa, which are poised to provide capacity building, regulatory framework development, and financing opportunities. This multifaceted approach is designed to create a robust and sustainable halal ecosystem in Nigeria, capable of competing on the global stage.
The Nigerian delegation comprised a diverse group of stakeholders, including representatives from government ministries, regulatory bodies, financial institutions, and the private sector. This broad representation underscores the collaborative nature of the initiative and the commitment of various sectors to its success. The presence of such a diverse delegation signifies a whole-of-government and whole-of-society approach to developing the halal sector. This collaborative effort seeks to harness the collective expertise and resources of various stakeholders to achieve the ambitious goals set forth in the agreement. The inclusion of private sector representatives further emphasizes the importance of public-private partnerships in driving economic growth and development.
The initiative builds on previous pronouncements by Vice President Shettima regarding the economic potential of the halal sector. During a Halal Economy Stakeholders Engagement Programme held in Abuja in September 2023, he highlighted the significant contribution the sector could make to Nigeria’s GDP. He noted that increasing Nigeria’s halal exports to Organisation of Islamic Cooperation (OIC) markets from 2% to 6% could boost the country’s GDP by $540 million, while strategic import substitution could add nearly $1 billion by 2027. This data underscores the vast untapped potential of the halal market and the significant economic benefits Nigeria stands to gain from its strategic engagement in this sector. The agreement with Saudi Arabia marks a decisive step towards realizing this potential and transforming Nigeria into a global halal economy powerhouse.
