The Nigeria Halal Economy Report 2023 released last Thursday has revealed that the market reached $107 billion in 2022.
The report also shows that the market is expected to grow at a Compound Annual Growth Rate of 10.7 percent to reach $180 billion by 2027, and would boost Nigeria’s GDP by $1.6 billion within the period.
The report explained that the Halal market would boost Nigeria’s economy through incremental exports, import substitution, and Foreign Direct Investment opportunities.
Rafi-Uddin Shikoh, chief executive officer, CEO, DinnarStandard, while presenting the report in Abuja stressed that agriculture, fashion, media, recreation and the financial sector have been identified as lucrative areas where Halal would leverage on.
According to him, the Nigeria Halal Economy Report 2023 aims to inspire and empower government entities in Nigeria, industries, and investors to grow Nigeria’s presence in the global and regional halal economy.
“Simplifying trade regulations, enhancing production competitiveness, increasing consumer awareness, and fostering partnerships are some strategies that can help Nigeria develop and grow its halal economy,” Shikoh said.
Zainab Ahmed, minister of Finance, Budget and National Planning, said Nigerians needed to take advantage of the huge opportunities created by the emerging halal industry, hence government should create the right regulation and the enabling environment for entrepreneurs, organisations, associations and accreditation bodies to support the entire value chain.
She said, “Halal is one of the fastest growing markets in global economy today. The reports being released today aims to empower government entities, industries and investors to grow Nigeria’s presence in the global Halal economy and increase consumers awareness and foster partnerships to help Nigeria tap into Halal economy opportunities.”
The Emir of Kano, Nasiru Bayero said the Halal economy provided Nigeria a huge potential for job creation and investment opportunities, especially in the agriculture, food processing, and logistics sectors.
“In addition to job creation and economic growth, the Halal market in Nigeria also presents an opportunity for businesses to expand their customer base and reach new market,” he said.
Dikko Muhammadu Dikko Ladan, CEO, Dar Al Halal Nigeria, said Nigeria was the second largest consumer market for Halal products and services in Africa and the launch of the report is to sensitize and presented an opportunity for the country to attract foreign investors.
Halal industry, is a global chain comprising Halal food, Halal cosmetics, Halal pharmaceuticals, Muslim friendly tourism, Halal logistics and supply chain, Modest fashion, Halal media and recreation, and other markets targeting to fulfil the needs of Muslim consumers globally.
Citing lucrative opportunity awaiting Nigeria in the Halal industry, the report said “Globally, Muslim consumer spending on food, clothing, media and recreation, pharmaceuticals, cosmetics, and travel was worth $2.3 trillion in 2022. Nigeria’s Muslim consumer spend totals $107 billion, accounting for 4.7 percent of the global spend and 22.7 percent of Africa’s spend. Nigeria’s Islamic finance assets e were estimated to be worth $3.3 billion. This positions Nigeria as the second-largest halal market in Africa after Egypt.”
In terms of trade, the report noted that Nigeria is the 11th largest exporter of halal products to OIC with the African region. It exported a total of $379 million in halal products (food, pharma, and cosmetics) to OIC countries.