In a move aimed at diversifying Nigeria’s economy and creating new opportunities for growth, the Federal Government has signed a cooperation agreement with Saudi Arabia’s Halal Products Development Company (HPDC).The agreement, valued at $7.7 trillion, is expected to establish Nigeria as a leading player in the global halal market.
The signing ceremony, which took place at the Makkah Halal Forum in Saudi Arabia, was attended by Vice President Kashim Shettima, represented by Senator Ibrahim Hassan Hadejia, and other top government officials. The agreement was executed with HPDC, a subsidiary of the Saudi Public Investment Fund, represented by its Chief Executive Officer, Fahad Alnuhait.
According to Vice President Shettima, the partnership represents a game-changing opportunity to transform Nigeria into a global halal economy powerhouse. “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,” he said.
The agreement is expected to facilitate investment, technical cooperation, and market access across key sectors, including food production, pharmaceuticals, finance, and livestock for both countries. The partnership builds on Nigeria’s growing Islamic finance sector, which has seen success through Sukuk bonds for infrastructure financing and the establishment of Islamic banks.
Support from International Organizations
The Islamic Development Bank and the Arab Bank for Economic Development in Africa will support the initiative through capacity building, regulatory framework development, and financing opportunities. According to Special Assistant to the President on Export Promotion, Aliyu Sheriff, the partnership aligns perfectly with the Renewed Hope Agenda by creating new jobs, attracting foreign direct investment, and diversifying the economy.
Nigeria’s Halal Economy Potential
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. The halal economy extends beyond Muslim consumers, with non-Muslim majority countries like Brazil, Australia, and Thailand already leveraging the sector for substantial export growth.
The Nigerian delegation included top government officials, business leaders, and representatives from various organizations. These included the Chairman of Dar Al Halal Group, Alhaji Muhammadu Ladan Dikko; the Chairman of the Board of Directors, Bank of Industry, Dr. Mansur Muhtar; and the Minister of Trade and Investment, Dr. Jumoke Oduwole, among others.
The agreement marks a significant step towards realizing Nigeria’s potential in the global halal economy, and the government is committed to leveraging this collaboration to drive economic growth and development.