Saudi Arabia and Nigeria Collaborate to Enter the $7.7 Trillion Global Halal Market

Nigeria and Saudi Arabia have inked a new agreement with the goal of making Nigeria a major player in the 7.7 trillion halal economy.

In order to position Nigeria as a major participant in the $7.7 trillion global halal industry, the country has inked a cooperation deal with Saudi Arabia’s Halal Products Development Company (HPDC).

Investment, technological collaboration, and market access in important areas like as food production, medicines, finance, and livestock will be made easier for both nations by the pact.

Vice President Kashim Shettima, speaking at the signing ceremony at the Makkah Halal Forum in Saudi Arabia, said in a statement released on Thursday by his media assistant Stanley Nkwocha that the partnership was a revolutionary chance to make Nigeria a global leader in the halal economy.

Through Senator Ibrahim Hadejia, Deputy Chief of Staff to the President (Office of the Vice President), Shettima stated, “This partnership is a significant step in our goal to not only access the profitable halal market but to position Nigeria as a major player in the world market.”We are dedicated to using this partnership to diversify our economy, generate employment, and draw in foreign investment in accordance with President Bola Tinubu’s Renewed Hope Agenda.

His Excellency Mr. Fawaz bin Talal Al-Harbi, Chairman of the Makkah Halal Forum’s Organizing Committee; His Excellency Mr. Abdullah bin Saleh Kamel, Chairman of the Makkah Chamber of Commerce and Industry; and Saudi Arabia’s Minister of Commerce, Dr. Majid bin Abdullah Al-Qasabi, were present when the agreement was signed with HPDC, a subsidiary of the Saudi Public Investment Fund, represented by its Chief Executive Officer, Fahad Alnuhait.

The relationship, according to Aliyu Sheriff, Special Assistant to the President on Export Promotion, built on Nigeria’s expanding Islamic finance industry, which had achieved success through the development of Islamic banks including Jaiz Bank, Taj Bank, and Lotus Bank as well as Sukuk bonds for financing infrastructure.

Sheriff clarified that the Arab Bank for Economic Development in Africa (BADEA) and the Islamic Development Bank (IsDB) will provide financial opportunities, regulatory framework development, and capacity building to assist the project.

By bringing in foreign direct investment, diversifying our economy, and generating new jobs, this deal is a perfect fit with the Renewed Hope Agenda, he said.

Muslims are not the only consumers in the halal market. Brazil, Australia, and Thailand—all of which have a non-Muslim majority—are already using the industry to boost their exports significantly.

Alhaji Muhammadu Ladan Dikko, the chairman of the Dar Al Halal Group; Dr. Mansur Muhtar, the chairman of the Bank of Industry’s board of directors; Dr. Jumoke Oduwole, the minister of trade and investment, on behalf of Ambassador Nura Rimi; Ambassador Yusuf Tuggar, on behalf of Ambassador Mahmoud Lele; and Hajiya Amina, a representative of the Standard Organization of Nigeria (SON), were also part of the Nigerian delegation.

Others included Engr. Ibrahim Usman, Chairman of the Nigeria-Saudi Chamber of Commerce; Mr. Wale Edun, Minister of Finance, represented by Nur Muftau Baba Ahmed; Mrs. Nonye Aneyi, Chief Executive Officer of the Nigeria Export Promotion Council, represented by Mustapha Aminu; Alhaji Jani Ibrahim, Deputy President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA); and Mr. Olasupo Olusi, Managing Director of the Bank of Industry, with Mrs. Jelilat Ismaila-Ayinde.

Shettima highlighted the sector’s economic potential at the Halal Economy Stakeholders Engagement Program, which was held in September of last year at State House’s Banquet Hall in Abuja. She stated that “increasing Nigeria’s halal exports to 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.”