(Photo: Arise News)

In a significant move to position itself as a key player in the burgeoning global halal market, the Nigerian government has signed a cooperation agreement with Saudi Arabia’s Halal Products Development Company (HPDC). This partnership aims to tap into a market valued at an impressive $7.7 trillion, opening doors for Nigeria to enhance its economic landscape.

Stanley Nkwocha, the Senior Special Assistant to the President on Media and Communications in the Office of the Vice President, announced that this agreement will pave the way for investment, technical collaboration, and market access across vital sectors such as food production, pharmaceuticals, finance, and livestock. This strategic alliance is expected to benefit both nations significantly.

During the signing ceremony held at the Makkah Halal Forum in Saudi Arabia, Vice President Kashim Shettima emphasized that this partnership represents a transformative opportunity for Nigeria to emerge as a powerhouse in the global halal economy. Represented by Ibrahim Hadejia, Deputy Chief of Staff to the President, Shettima described the collaboration as a crucial step toward not only accessing the lucrative halal market but also establishing Nigeria as a prominent global player.

“We are dedicated to leveraging this collaboration to create jobs, attract foreign investment, and diversify our economy in alignment with President Bola Ahmed Tinubu’s Renewed Hope Agenda,” he stated, highlighting the broader economic implications of the agreement.

The agreement was formalized with HPDC, a subsidiary of the Saudi Public Investment Fund, with CEO Fahad Alnuhait present, alongside notable figures such as Abdullah Al-Qasabi, Saudi Arabia’s Minister of Commerce, and Fawaz bin Talal Al-Harbi, Chairman of the Makkah Halal Forum’s Organizing Committee.

Aliyu Sharif, Special Assistant to the President on Export Promotion, further elaborated on the partnership’s potential, noting that it builds on Nigeria’s expanding Islamic finance sector. This sector has already seen success through Sukuk bonds for infrastructure financing and the establishment of Islamic banks such as Jaiz Bank, Taj Bank, and Lotus Bank.

Sharif explained that the initiative will receive support from the Islamic Development Bank (IsDB) and the Arab Bank for Economic Development in Africa (BADEA), which will assist in capacity building, regulatory framework development, and financing opportunities. “This agreement aligns seamlessly with the Renewed Hope Agenda by creating new jobs, attracting foreign direct investment, and diversifying our economy,” he added.

Importantly, the halal economy is not limited to Muslim consumers. Countries with non-Muslim majorities, such as Brazil, Australia, and Thailand, are already capitalizing on this sector for substantial export growth. This presents a unique opportunity for Nigeria to broaden its market reach.

The Nigerian delegation at the signing included prominent figures such as Ladan Dikko, Chairman of Dar Al Halal Group; Mansur Muhtar, Chairman of the Board of Directors of the Bank of Industry; and Jumoke Oduwole, Minister of Trade and Investment, represented by Nura Rimi. Other notable attendees included Yusuf Tuggar, Minister of Foreign Affairs, represented by Ambassador Mahmoud Lele, and representatives from the Standard Organization of Nigeria, including Hajiya Amina.

Vice President Shettima had previously highlighted the economic potential of the halal sector during the Halal Economy Stakeholders Engagement Programme at the Presidential Villa in Abuja last September. He noted that increasing Nigeria’s halal exports to Organization of Islamic Cooperation (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.

With this new partnership, Nigeria is poised to harness the vast potential of the global halal economy, creating a pathway for economic growth, job creation, and increased international trade. As the country embarks on this ambitious journey, it stands ready to make its mark in the dynamic halal market, ultimately benefiting both its economy and its people.

Original Article:

BusinessDay. (2024, April 3). Nigeria eyes $7.7tn global halal economy with new Saudi Arabia pact. https://businessday.ng/news/article/nigeria-eyes-7-7tn-global-halal-economy-with-new-saudi-arabia-pact/