Nigeria Partners with Saudi Arabia to Boost $7.7 Trillion Halal Economy
Nigeria has signed an agreement with Saudi Arabia to develop its halal sector, targeting a $7.7 trillion market. This initiative aims at fostering investment and technical collaboration across food production and finance, among others. Vice President Shettima sees this as a chance for Nigeria to emerge as a global halal player, enhancing economic diversification and job creation.
The Federal Government of Nigeria has entered into a cooperation agreement with Saudi Arabia’s Halal Products Development Company, aiming to position Nigeria as a pivotal participant in the global halal market, projected to be valued at $7.7 trillion. This partnership is designed to facilitate investments, technical collaboration, and market access in vital sectors encompassing food production, pharmaceuticals, finance, and livestock for both nations, enhancing their economic ties.
During the ceremonial signing at the Makkah Halal Forum in Saudi Arabia, Vice President Kashim Shettima emphasized that this partnership signifies a transformative opportunity for Nigeria to emerge as a global halal economy leader. Representing the Vice President, Senator Ibrahim Hassan Hadejia remarked, “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.”
The Vice President’s Special Assistant on Media and Communication, Stanley Nkwocha, highlighted the importance of this agreement for job creation, attracting foreign investment, and diversifying Nigeria’s economy in alignment with President Bola Tinubu’s Renewed Hope Agenda. The agreement was signed with HPDC, a subsidiary of the Saudi Public Investment Fund, led by CEO Fahad Alnuhait, and attended by prominent Saudi officials including Dr. Majid bin Abdullah Al-Qasabi, Minister of Commerce.
Further supporting this initiative, Aliyu Sheriff, Special Assistant to the President on Export Promotion, noted that the partnership builds upon Nigeria’s advancing Islamic finance sector, illustrated through successful Sukuk bonds and Islamic banks like Jaiz and Taj Banks. With backing from the Islamic Development Bank and the Arab Bank for Economic Development in Africa, the project aims to enhance capacity building and the regulatory framework.
Sheriff stated, “This agreement aligns perfectly with the Renewed Hope Agenda by creating new jobs, attracting foreign direct investment, and diversifying our economy.” He also pointed out that the halal economy is not exclusive to Muslim consumers, as many non-Muslim majority countries capitalize on it for export growth. The Nigerian delegation included several government officials and business leaders, signaling strong workforce engagement in the halal sector.
In a previous engagement, VP Shettima discussed the sector’s economic potential, asserting that increasing Nigeria’s halal exports to Organization of Islamic Cooperation (OIC) markets from 2 percent to 6 percent could raise the GDP by approximately $540 million, while strategic import substitution might contribute nearly $1 billion by 2027.
In summary, Nigeria’s recent agreement with Saudi Arabia to develop its halal economy positions the nation to tap into a $7.7 trillion market. This collaboration promises significant job creation, foreign investment, and economic diversification while exploiting the potential of the halal sector. The endeavors to elevate Nigeria’s halal exports could further enhance the national GDP, conforming to a broader strategy of economic renewal.
Original Source: punchng.com
