Nigeria Partners with Saudi Arabia to Tap into $7.7 Trillion Halal Market
In a significant move to establish Nigeria as a key player in the global halal market, valued at approximately $7.7 trillion, the Federal Government has entered into a cooperation agreement with the Halal Products Development Company (HPDC) of Saudi Arabia. The agreement will promote investment, technical collaboration, and market access across critical sectors such as food production, pharmaceuticals, finance, and livestock between the two nations.
During a signing ceremony at the Makkah Halal Forum in Saudi Arabia, Vice President Kashim Shettima highlighted that this partnership represents a pivotal opportunity for Nigeria to transition into a formidable global halal economy. Shettima was represented by Senator Ibrahim Hassan Hadejia, Deputy Chief of Staff to the President. In a statement released by Senior Special Assistant to the VP on Media and Communication, Stanley Nkwocha, Shettima expressed confidence that the collaboration would not only tap into the lucrative halal market but also position Nigeria as a leading contender on the international stage.
“This collaboration is a significant stride in our desire to dominate the halal market. We are determined to utilize this partnership to generate employment opportunities, attract foreign investments, and diversify our economy in alignment with President Bola Tinubu’s Renewed Hope Agenda,” Shettima stated.
The agreement was signed with HPDC, a subsidiary of Saudi Arabia’s Public Investment Fund, and was executed in the presence of prominent figures, including Saudi Arabia’s Minister of Commerce, Dr. Majid bin Abdullah Al-Qasabi, as well as the Chairman of the Makkah Halal Forum’s Organizing Committee, His Excellency Mr. Fawaz bin Talal Al-Harbi.
Aliyu Sheriff, the Special Assistant to the President on Export Promotion, further elaborated that this partnership builds on Nigeria’s emerging Islamic finance sector, which has experienced success through infrastructure financing via Sukuk bonds and the establishment of Islamic banks like Jaiz Bank, Taj Bank, and Lotus Bank. He also noted that organizations such as the Islamic Development Bank and the Arab Bank for Economic Development in Africa would support this initiative by offering capacity-building programs, regulatory framework development, and financing solutions.
“This agreement is perfectly synchronized with the Renewed Hope Agenda, as it aims to create new job opportunities, attract foreign direct investment, and diversify our economy. The halal economy is not limited to Muslim consumers; even non-Muslim majority nations such as Brazil, Australia, and Thailand are benefiting significantly from the sector’s export growth,” Sheriff explained.
The Nigerian delegation to the signing ceremony included high-profile representatives such as Alhaji Muhammadu Ladan Dikko, Chairman of Dar Al Halal Group; Dr. Mansur Muhtar, Chairman of the Board of Directors at the Bank of Industry; and Dr. Jumoke Oduwole, Minister of Trade and Investment. They were joined by various other officials, including the Minister of Foreign Affairs, Yusuf Tuggar, and the CEO of Nigeria Export Promotion Council, Mrs. Nonye Aneyi, among others.
During a previous engagement on the halal economy at the Banquet Hall of the Presidential Villa in Abuja, VP Shettima emphasized the sector’s economic potential, arguing that increasing Nigeria’s halal exports to Organization of Islamic Cooperation (OIC) markets from 2% to 6% could enhance the nation’s GDP by $540 million, while strategic import substitution might contribute nearly $1 billion by the year 2027.
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