Source: Leadership News

Kawaguchiko, Japan – Nigeria has taken a significant step toward becoming a major player in the global halal industry by signing a comprehensive cooperation agreement with Saudi Arabia’s Halal Products Development Company (HPDC). The partnership aims to position Nigeria strategically within the rapidly expanding global halal market, currently valued at an impressive $7.7 trillion.

Comprehensive Cooperation Framework

The agreement, formalized during the Makkah Halal Forum in Saudi Arabia, establishes a framework for extensive collaboration across multiple sectors including food production, pharmaceuticals, Islamic finance, and livestock development. This cross-sector approach reflects the broad scope of the modern halal economy, which extends well beyond food to encompass various aspects of ethical production and services.

Vice President Kashim Shettima, represented at the signing ceremony by Senator Ibrahim Hassan Hadejia, Deputy Chief of Staff to the President, emphasized the transformative potential of this partnership.

“This collaboration is an important step in our ambition to not only tap into the lucrative halal market but to establish Nigeria as a leading global player,” Shettima stated. “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.”

High-Level Representation and Support

The agreement was signed with HPDC, a subsidiary of Saudi Arabia’s sovereign wealth fund, the Public Investment Fund. Representing HPDC was Chief Executive Officer Fahad Alnuhait, with the ceremony attended by several high-ranking officials including Saudi Arabia’s Minister of Commerce, Dr. Majid bin Abdullah Al-Qasabi, and Chairman of the Makkah Chamber of Commerce and Industry, Abdullah bin Saleh Kamel.

Nigeria’s delegation included representatives from key economic ministries and institutions, demonstrating the government’s whole-of-economy approach to developing the halal sector. The delegation featured representatives from the Bank of Industry, Ministry of Trade and Investment, Ministry of Foreign Affairs, Standard Organization of Nigeria, Nigeria-Saudi Chamber of Commerce, Ministry of Finance, Nigeria Export Promotion Council, and NACCIMA.

Building on Existing Success

According to Aliyu Bunu Sheriff, Special Assistant to the President on Export Promotion, this new partnership builds upon Nigeria’s growing success in Islamic finance. The country has already utilized Sukuk bonds for infrastructure development and established several Islamic banking institutions including Jaiz Bank, Taj Bank, and Lotus Bank.

The initiative will receive support from international financial institutions, with both the Islamic Development Bank (IsDB) and the Arab Bank for Economic Development in Africa (BADEA) committing to assist with capacity building, regulatory framework development, and financing opportunities.

Economic Growth Potential

The partnership aligns with Nigeria’s economic diversification goals under the Renewed Hope Agenda. During a previous Halal Economy Stakeholders Engagement Programme held at the Presidential Villa in September 2024, Vice President Shettima highlighted the significant economic potential of expanding Nigeria’s participation in halal markets.

“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,” Shettima had noted.

Sheriff emphasized that the halal economy extends beyond predominantly Muslim markets, pointing out that non-Muslim majority countries like Brazil, Australia, and Thailand have already successfully leveraged the sector to achieve substantial export growth.

As this partnership unfolds, Nigeria is positioning itself to capitalize on the growing global demand for halal products and services, potentially creating thousands of jobs while attracting significant foreign direct investment across multiple sectors of the economy.

Original Articles:

statehouse.gov.ng. (n.d.). Nigeria Signs Pact With Saudi Arabia To Boost $7.7trn Halal Economy. Retrieved April 2, 2025, from https://statehouse.gov.ng/news/nigeria-signs-pact-with-saudi-arabia-to-boost-7-7trn-halal-economy/