The Federal Government of Nigeria has signed a cooperation agreement with Saudi Arabia’s Halal Products Development Company (HPDC) to explore the $7.7 trillion global halal market.
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Key Highlights of the Agreement
- The partnership will boost investment, technical cooperation, and market access in food production, pharmaceuticals, finance, and livestock.
- The deal was signed at the Makkah Halal Forum in Saudi Arabia, with Vice President Kashim Shettima(represented by Sen. Ibrahim Hadejia) describing it as a game-changer for Nigeria’s economy.
- Nigeria aims to position itself as a global player in the halal economy, attracting foreign investments and creating job opportunities.
Strategic Economic Impact
- The deal builds on Nigeria’s growing Islamic finance sector, which has already seen success with Sukuk bondsand the rise of Islamic banks like Jaiz, Taj, and Lotus.
- Institutions like the Islamic Development Bank (IsDB) and the Arab Bank for Economic Development in Africa (BADEA) will provide capacity building, regulatory support, and financing opportunities.
Global Market Potential
- Countries like Brazil, Australia, and Thailand have already leveraged the halal economy for substantial export growth.
- Nigeria’s entry into this market aligns with President Bola Tinubu’s Renewed Hope Agenda to diversify the economy and boost exports beyond oil.
