Nigeria Plans to Become Key Player in Halal Economy

Nigeria, with its predominantly Muslim population, is looking to position itself as a major player in the halal economy. The government plans to add $1.5 billion to the country’s GDP by 2027 through a strategy focused on the growing sector.

Huge Economic Potential

Nigeria spends hundreds of billions of dollars annually on the purchase of halal products. The government recognizes a considerable potential in this area, capable of boosting the national economy in the years to come. The project aims to diversify the economy by developing services that comply with Islamic standards, according to a statement issued on September 16, 2024.

An Ambitious National Strategy

The Federal Government is preparing a national strategy in collaboration with government agencies, private sector leaders and international partners. This initiative leverages Nigeria’s position as the eighth largest halal economy in the world.

Economic Diversification and Islamic Finance

Aliyu Bunu Sheriff, Special Assistant to the President on Export Development, noted that the halal economy represents a unique opportunity for Nigeria to diversify its revenues and ensure sustainable economic growth. The country is already tapping into the tools of Islamic finance, with $1.43 billion raised through sukuk to finance its development, according to a report by Abbas Sherif’s cabinet in May.

The Growing Role of the Halal Economy

Although Nigeria is well positioned, halal exports account for only 5.7% of Africa’s $4.2 billion exports to the Organisation of Islamic Cooperation (OIC) countries. However, authorities are hoping to capitalise on the local and international potential of the halal market, especially as domestic spending on halal products reached $107 billion in 2022. This spending is expected to grow at a compound annual rate of 10.7%, reaching $180 billion by 2027, according to the Dar Al Halal report.

Conclusion

With a booming halal market, Nigeria is looking to harness its economic potential to become a key player in this sector. The government’s strategy to strengthen this sector could not only diversify the economy but also strengthen the country’s position on the international stage, while promoting sustainable growth.