Nigeria eyes $7.7tn global Halal economy with new Saudi Arabia pact

The Nigerian Government on Thursday, signed a cooperation agreement with Saudi Arabia’s Halal Products Development Company (HPDC) to establish Nigeria as a leading player in the global halal market valued at $7.7 trillion.

Stanley Nkwocha, the senior special assistant to the president on media and communications, office of the vice president, said the agreement will facilitate investment, technical cooperation, and market access across key sectors, including food production, pharmaceuticals, finance, and livestock for both countries, in a statement on Thursday

Speaking during the signing ceremony at the Makkah Halal Forum in Saudi Arabia, Vice President Kashim Shettima pointed out that the partnership represents a game-changing opportunity to transform Nigeria into a global halal economy powerhouse.

The Vice President who was represented by Ibrahim Hadejia, the deputy chief of staff taff to the President, described the collaboration as an “important step in our ambition to not only tap into the lucrative halal market but to establish Nigeria as a leading global player.

“We are committed to leveraging this collaboration to create jobs, attract foreign investment, and diversify our economy in line with the Renewed Hope Agenda of President Bola Ahmed Tinubu,” he said.

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The agreement was executed with HPDC, a subsidiary of the Saudi Public Investment Fund, represented Fahad Alnuhait, Chief Executive Officer, , in the presence of Abdullah Al-Qasabi; Saudi Arabia’s Minister of Commerce, Fawaz bin Talal Al-Harbi, Chairman of the Makkah Halal Forum’s Organizing Committee, and Abdullah bin Saleh Kamel, Chairman of Makkah Chamber of Commerce and Industry

Also speaking, Aliyu Sharif, Special Assistant to the President on Export Promotion, said the partnership builds on Nigeria’s growing Islamic finance sector, which has seen success through Sukuk bonds for infrastructure financing and the establishment of Islamic banks like Jaiz Bank, Taj Bank, and Lotus Bank.

Sheriff explained that the Islamic Development Bank (IsDB) and the Arab Bank for Economic Development in Africa (BADEA) will support the initiative through capacity building, regulatory framework development, and financing opportunities.

“This agreement aligns perfectly with the Renewed Hope Agenda by creating new jobs, attracting foreign direct investment, and diversifying our economy.

“The halal economy extends beyond Muslim consumers. Non-Muslim majority countries like Brazil, Australia, and Thailand are already leveraging the sector for substantial export growth,” he said.

The Nigerian delegation also included Ladan Dikko, Chairman of Dar Al Halal Group, Mansur Muhtar, Chairman of the Board of Directors, Bank of Industry, and Jumoke Oduwole, Minister of Trade and Investment, who was represented Nura Rimi;

Others include Yusuf Tuggar, Minister of Foreign Affairs, represented by Ambassador Mahmoud Lele, and Representative of the Standard Organization of Nigeria, Hajiya Amina.
Shettima had during the Halal Economy Stakeholders Engagement Programme held at the Banquet Hall of the Presidential Villa, Abuja, in September last year emphasized the economic potential of the sector, noting 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.