Nigeria and Saudi Arabia Sign Agreement to Boost the $7.7 Trillion Global Halal Economy

The Federal Government of Nigeria has signed an agreement with Saudi Arabia’s Halal Products Development Company (HPDC) to position Nigeria as a major player in the global halal market, which is estimated to be worth $7.7 trillion.

This agreement was signed in Saudi Arabia on Wednesday, with Nigeria’s Vice President, Kashim Shettima, describing it as a significant opportunity to transform Nigeria’s economic landscape.

According to him, the agreement will create jobs, attract foreign investment, and expand Nigeria’s economy.

"The halal economy is not exclusive to Muslim countries. Nations like Brazil, Australia, and Thailand have already recognized its value and are benefiting from it to grow their businesses," he stated.

The agreement aims to facilitate investment, technological collaboration, and market access in key sectors such as food production, pharmaceuticals, finance, and livestock between Nigeria and Saudi Arabia.

The agreement was signed with HPDC, a subsidiary of the Public Investment Fund (PIF) of Saudi Arabia. The CEO of HPDC, Fahad Alnuhait, represented the company, while Saudi Arabia’s Minister of Commerce, Majid bin Abdullah Al-Qasabi, along with other senior Saudi officials, attended the signing ceremony.

At the event, Nigeria’s Deputy Chief of Staff to the Vice President, Ibrahim Hadejia, representing Shettima, stated:

“This partnership is a major step in our efforts to enter the global halal market. Our goal is to establish Nigeria as a leading hub for halal commerce worldwide.”

He further emphasized that President Bola Ahmed Tinubu’s administration is committed to leveraging this opportunity to create jobs, attract foreign investments, and enhance Nigeria’s economic growth.

The Special Adviser to the President on Export Promotion, Aliyu Bunu Sheriff, highlighted that the agreement aims to strengthen Islamic finance in Nigeria. He noted that Nigeria has already made strides in Islamic finance through the issuance of Sukuk bonds, which have been used to fund major infrastructure projects.

He also mentioned that Islamic banks such as Jaiz Bank, Taj Bank, and Lotus Bank play a crucial role in Nigeria’s growing halal economy.

Sheriff added that the Islamic Development Bank (IsDB) and the Arab Bank for Economic Development in Africa (BADEA) will provide support in areas such as education, regulatory frameworks, and funding to sustain this initiative.

The Nigerian delegation at the signing ceremony included key government and business leaders such as the Chairman of Dar Al Halal Group, Alhaji Muhammadu Ladan Dikko; Chairman of the Bank of Industry, Mansur Muhtar; Minister of Trade and Investment, Jumoke Oduwole (represented by Ambassador Nura Rimi); and Minister of Foreign Affairs, Ambassador Yusuf Tuggar (represented by Ambassador Mahmoud Lele).

Other notable attendees were the Director General of the Nigerian Export Promotion Council, Nonye Aneyi (represented by Mustapha Aminu); Minister of Finance, Wale Edun (represented by Nur Muftau Baba Ahmed); and the President of the Nigeria-Saudi Arabia Chamber of Commerce, Ibrahim Usman.

Also present were Jani Ibrahim, Vice President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), and Olasupo Olusi, Managing Director of the Bank of Industry (represented by Jelilat Ismaila-Ayinde).

It is believed that this agreement will open new opportunities, attract foreign investment, and contribute to the economic growth of both Nigeria and Saudi Arabia, particularly in the sectors of food, pharmaceuticals, finance, and livestock.

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