Nigeria Partners with Saudi Arabia to Tap into $7.7 Trillion Halal Economy

Nigeria has taken a significant step toward becoming a key player in the global halal market with the signing of a cooperation agreement with Saudi Arabia’s Halal Products Development Company (HPDC). The partnership aims to position Nigeria as a leading hub in the $7.7 trillion halal economy, fostering investment, technical collaboration, and market access across multiple sectors.

The agreement, signed at the Makkah Halal Forum in Saudi Arabia, will enhance cooperation in critical areas such as food production, pharmaceuticals, finance, and livestock. By aligning with Saudi Arabia, Nigeria is strategically positioning itself to leverage the growing demand for halal-certified products worldwide.

Speaking at the signing ceremony, Vice President Kashim Shettima, represented by Deputy Chief of Staff to the President, Ibrahim Hassan Hadejia, described the deal as a “game-changing opportunity” for Nigeria. He emphasized that the collaboration is a crucial step toward establishing Nigeria as a major force in the global halal economy.

“This partnership will unlock immense economic opportunities for Nigeria, allowing us to tap into the rapidly expanding halal market while fostering stronger trade relations with Saudi Arabia and other key players in the industry,” he said.

Nigeria’s interest in the halal economy is driven by its potential to boost GDP and enhance trade with the Organisation of Islamic Cooperation (OIC) markets. During the Halal Economy Stakeholders Engagement Programme at the Presidential Villa in Abuja last year, Vice President Shettima highlighted the significant financial benefits of expanding Nigeria’s halal exports.

He noted that increasing Nigeria’s halal exports to OIC markets from 2% to 6% could generate an additional $540 million in GDP, while strategic import substitution within the sector could contribute nearly $1 billion by 2027.

Key Sectors and Opportunities

The agreement with Saudi Arabia is expected to stimulate investment in various sectors, including:

• Food Production: Enhancing Nigeria’s capacity to produce and export halal-certified food products.
• Pharmaceuticals: Expanding the production of halal-compliant medicines and healthcare products.
• Finance: Strengthening Islamic finance institutions and investment vehicles.
• Livestock: Improving halal meat production for domestic and international markets.

By developing a robust halal economy, Nigeria aims to diversify its economic base and reduce dependence on crude oil exports.

The partnership with Saudi Arabia also aligns with Nigeria’s broader economic diversification strategy and efforts to attract foreign direct investment. It signifies a strengthening of bilateral relations between the two countries, fostering deeper collaboration in trade and investment.

With the halal economy growing at a rapid pace globally, Nigeria’s strategic move positions it as a key player in the industry. The government’s proactive approach in tapping into this market signals a new era of economic transformation and international trade expansion for Africa’s largest economy.