News Desk
LAGOS, Nigeria — Nigeria is making a big move to claim a piece of the sprawling $7.7 trillion global halal market, a sector that’s growing fast and reaching far beyond its traditional Muslim consumer base. On Wednesday, the West African nation inked a cooperation agreement with Saudi Arabia’s Halal Products Development Company (HPDC), a deal that could reshape Nigeria’s economic future by tapping into industries like food, pharmaceuticals, finance, and livestock.
The announcement came from Vice President Kashim Shettima’s office, at the Makkah Halal Forum in Saudi Arabia. Nigeria sees this partnership as a “game-changing opportunity.” The goal? To diversify an economy that’s long leaned heavily on oil, create jobs, and draw in foreign cash, all in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda.
The deal links Nigeria with HPDC, a subsidiary of Saudi Arabia’s massive Public Investment Fund, headed by CEO Fahad Alnuhait. It’s a high-profile tie-up, sealed in the presence of Saudi heavyweights like Commerce Minister Majid bin Abdullah Al-Qasabi and Fawaz bin Talal Al-Harbi, who chairs the Makkah Halal Forum’s organizing committee. For Nigeria, it’s a chance to leverage Saudi expertise and market clout to break into a global industry that’s not just lucrative but increasingly mainstream.
“Halal” means permissible under Islamic law, and in the context of this market, it’s about products—mostly food, but also cosmetics, drugs, and financial services—that meet strict religious standards.
Think meat slaughtered in a specific ritual way, no pork or alcohol, and a supply chain free of contamination by anything deemed “haram,” or forbidden. But here’s the kicker: the halal label isn’t just for Muslims anymore. It’s gaining traction with non-Muslims who see it as a mark of quality, hygiene, and ethical production.
Globally, the halal economy is a juggernaut. Estimates vary, but recent reports peg its value at anywhere from $2.3 trillion today to a projected $7.7 trillion by 2025, depending on who’s counting and what’s included.
The State of the Global Islamic Economy Report, a go-to source, says Muslim spending on food alone hit $1.27 trillion in 2021 and could climb to $1.6 trillion by next year. Add in pharmaceuticals, cosmetics, travel, and Islamic finance—think interest-free banking—and you’ve got a market that’s not just big but diverse.
The Muslim population, now at 1.9 billion and expected to reach 2.8 billion by 2050, drives much of this demand. Countries like Indonesia (home to the world’s largest Muslim population), Malaysia, and Saudi Arabia are hubs, but the appetite for halal goods stretches to Europe, North America, and beyond.
In the U.S., for instance, halal-certified products are popping up in supermarkets like Whole Foods, fueled by a mix of Muslim consumers and health-conscious buyers who trust the label.
Nigeria’s got a strong starting point. With roughly 100 million Muslims—about half its population—it’s already a major domestic halal market, spending $107 billion on halal goods in 2022, per the Nigeria Halal Markets Report 2023. That’s 22.7% of Africa’s total halal spend, second only to Egypt.
The country’s Islamic finance sector, worth $3.3 billion, has been gaining steam too, with Sukuk bonds funding roads and bridges, and banks like Jaiz and Taj carving out a niche.
But Nigeria’s not just looking inward. It’s the 11th-largest exporter of halal products to Organization of Islamic Cooperation (OIC) countries in Africa, shipping $379 million worth of food, pharma, and cosmetics in recent years. Still, there’s a catch: it imports way more than it exports—70-80% of its consumed goods come from abroad. That’s a gap the government wants to close, and this Saudi deal could be the key.
Under the agreement, Nigeria gets technical know-how, investment, and a foothold in Saudi Arabia’s well-oiled halal ecosystem. The focus is on four big sectors: food production (think poultry and grains), pharmaceuticals (halal-certified drugs and gelatin), Islamic finance (expanding those Sukuk bonds), and livestock (cattle and sheep, key for meat exports).
The Islamic Development Bank and the Arab Bank for Economic Development in Africa are pitching in with funding and regulatory support.
Saudi Arabia’s a natural partner. It’s a halal powerhouse, importing 80% of its food—much of it halal-certified—and hosting the Makkah Halal Forum, a global gathering that’s become a launchpad for deals like this. The kingdom’s pushing to localize its own halal production through HPDC, launched in 2022, and sees Nigeria as a strategic ally with its huge Muslim population and agricultural potential. For Nigeria, Saudi Arabia’s clout in the OIC and its deep pockets make it a golden ticket to global markets.
This isn’t just about Nigeria and Saudi Arabia. The halal market’s growth is rewriting economic playbooks worldwide. Malaysia’s a leader, exporting to over 200 countries and setting certification standards others envy.
Indonesia’s 2019 Halal Product Law mandates certification for all consumer goods, boosting traceability. Even non-Muslim countries like Thailand and the Philippines are jumping in, chasing export dollars.
What’s driving this boom? A young, tech-savvy Muslim population—60% under 30—wants products that fit their faith and lifestyle. But it’s more than that.
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Halal’s reputation for safety and ethics is pulling in non-Muslims too. In Europe, where food scandals have eroded trust, halal’s strict rules offer reassurance. In the U.S., plant-based halal meat is catching on with vegans and flexitarians. The market’s not just growing; it’s diversifying.
Nigeria’s got hurdles, though. Its infrastructure—roads, power, ports—lags, making exports tough. Corruption and red tape could scare off investors. And while Islamic finance is rising, it’s still a sliver of the economy, competing with conventional banks. Plus, the halal certification process can be a maze, with varying standards across countries. Nigeria will need to streamline its own system to compete globally.
Still, the potential’s huge. If Nigeria cuts its halal imports by just 15%, the Nigeria Halal Markets Report says it could add $938 million to its GDP in four years. Play its cards right—boosting local production, syncing with Saudi expertise—it could hit $1.6 billion by 2027.
For Shettima and Tinubu, this deal’s a bet on Nigeria’s future. It’s not just about feeding Muslims or cashing in on a trend. It’s about turning a cultural asset—Nigeria’s Muslim identity—into an economic engine. If it works, Nigeria could leap from regional player to global contender, proving the halal market’s not just a niche but a frontier for the 21st century.
As the Makkah Halal Forum wrapped up, the mood was optimistic but grounded. “We’re not just tapping into a market,” Hadejia said, channeling Shettima. “We’re building a platform—for jobs, for investment, for Nigeria to stand tall.” Whether that vision holds depends on execution, but one thing’s clear: Nigeria’s ready to take its shot.
This story was published in DailyPost Nigeria.
