Vice President Kashim Shettima has articulated Nigeria’s strategic vision to become a significant player in the global halal economy, which is projected to reach a staggering $7.7 trillion by 2025. This ambitious goal reflects the country’s intent to capitalize on the growing demand for halal products and services worldwide.
At the recent Halal Economy Stakeholders Engagement Programme held at the Presidential Villa in Abuja, Shettima outlined Nigeria’s strong economic foundation and demographic advantages as critical factors that could support the development of a vibrant halal investment sector. He underscored the importance of not only leveraging these strengths but also identifying and addressing existing weaknesses that could hinder progress in this market.
“To establish ourselves as a hub in the global halal economy, we must prioritize our strengths and critically evaluate our weaknesses,” Shettima stated. His remarks emphasized the need for a comprehensive strategy that involves all stakeholders in the halal sector, including government bodies, private enterprises, and international partners.
The event served as a platform for fostering collaboration with key international organizations, aimed at creating a robust halal ecosystem within Nigeria. Shettima highlighted the necessity of formulating effective strategies to position Nigeria as a leading exporter of halal products, targeting lucrative high-value markets around the world. He emphasized the potential benefits of such positioning, not only for the economy but also for job creation and international trade.
In acknowledging the vital role of the private sector, particularly the financial industry, in advancing Nigeria’s halal economy, Shettima called for stakeholders to work alongside the current administration. He stressed the importance of attracting foreign investment by promoting Nigeria’s vast opportunities in the halal sector through initiatives such as investor summits and promotional roadshows. These efforts aim to create awareness and encourage international businesses to consider Nigeria as a prime destination for halal investments.
Additionally, Shettima discussed the potential for expanding regional trade through the African Continental Free Trade Area (AfCFTA). He expressed optimism that this trade agreement could facilitate Nigeria’s position as a major supplier of halal goods and services across Africa, thereby enhancing its trade relations with neighboring countries. The Vice President also highlighted the necessity of increasing public awareness about the halal economy, which would enhance Nigeria’s visibility and competitiveness on a global scale.
Describing the halal market as inclusive, Shettima noted its alignment with the broader economic agenda of the current administration. He addressed the challenges related to understanding and complying with halal investment standards, which have historically stifled business growth and development in the sector. By promoting greater awareness and understanding of halal finance principles among Nigerians, he expressed hope that the sector could unlock its full potential.
During the event, a Deputy Chief of Staff to the President reiterated the importance of positioning Nigeria as a leader in the halal economy both regionally and globally. Another official pointed out that increasing Nigeria’s halal exports to Organization of Islamic Cooperation (OIC) countries from 2% to 6% over the next four years could lead to a substantial increase in the nation’s GDP, estimated at $548 million. This underscores the economic significance of enhancing Nigeria’s participation in the global halal market.
The Minister of Agriculture and Food Security shared that Nigeria’s domestic spending on halal products and services reached $107 billion in 2022, with projections indicating a robust annual growth rate of 10.7%. This growth trajectory aims to elevate Nigeria’s halal economy to an estimated $180 billion by 2027, potentially positioning the country as the eighth largest halal economy globally and the second largest in Africa.
Finally, the Minister of Finance emphasized the significant growth opportunities that halal products present, noting that there are over 125 products produced in compliance with halal standards. This variety offers substantial potential for increasing Nigeria’s export capacity and enhancing its overall competitiveness in the international market.
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