Nigeria partners Saudi Arabia to enhance $7.7 trillion Halal economy
Nigeria entered into a strategic cooperation agreement with Saudi Arabia’s Halal Products Development Company (HPDC) aimed at enhancing its position in the global halal market, which is valued at approximately $7.7 trillion.
This agreement was formalized during the Makkah Halal Forum in Saudi Arabia and is expected to foster investment, technical collaboration, and improved market access across several key sectors including food production, pharmaceuticals, finance, and livestock.
The agreement was signed for Nigeria by Vice President Kashim Shettima, who was represented by Senator Ibrahim Hassan Hadejia, Deputy Chief of Staff to the President.
Shettima emphasized that this partnership marks a transformative step for the economy of Nigeria and aligns with the country’s ambition to tap into the lucrative halal market while establishing itself as a leading player on the global stage.
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According to statements made by government officials, this collaboration is not only about economic growth but also aims to create jobs and attract foreign investments. The vice president highlighted that leveraging this partnership could significantly diversify Nigeria’s economy in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda.
The initiative will receive support from prominent financial institutions such as the Islamic Development Bank (IsDB) and the Arab Bank for Economic Development in Africa (BADEA). These organizations are expected to assist through capacity building efforts, regulatory framework development, and financing opportunities that will further bolster Nigeria’s halal economy.
The halal economy extends beyond just catering to Muslim consumers; it has been recognized globally as a sector with substantial growth potential.
Countries like Brazil, Australia, and Thailand have successfully leveraged their halal markets for export growth. Nigerian officials noted that increasing halal exports to Organization of Islamic Cooperation (OIC) markets from 2% to 6% could potentially boost Nigeria’s GDP by $540 million. Additionally, strategic import substitution could contribute nearly $1 billion by 2027.
This agreement signifies a major step forward for Nigeria as it seeks to enhance its economic landscape through participation in the burgeoning halal industry.
