Nigeria set to lead $7.7 trillion global halal market, says VP Shettima

By Kunle Sanni

Vice President Kashim Shettima has projected that Nigeria will emerge as a leading hub in the global halal economy, a market expected to reach $7.7 trillion by 2025.

Speaking at the Halal Economy Stakeholders Engagement Programme held at the Banquet Hall of the Presidential Villa, Abuja, Shettima highlighted the country’s economic and demographic strengths, positioning Nigeria for significant investment opportunities in the halal sector.

Senator Shettima underscored the need for Nigeria to reassess its weaknesses and prioritize its strengths to capitalize on this rapidly growing market. “For Nigeria to become a hub of opportunities in the global halal economy, we must prioritize our strengths and reassess our weaknesses. Today’s engagement provides a platform for us to collaborate with key international organisations,” Shettima stated.

He emphasized that through strategic partnerships, Nigeria could develop a robust halal ecosystem and position itself as a top exporter to high-value markets.

The Vice President commended the private sector’s contributions, particularly in the financial sector, in driving the halal economy. He called on stakeholders to join forces with President Bola Ahmed Tinubu’s administration in advancing the halal ecosystem. “To ensure this, we must attract international investment by showcasing the vast opportunities within Nigeria’s halal sector through investor summits, roadshows, and business matchmaking events,” Shettima said.

He also highlighted the potential of regional trade, especially through the African Continental Free Trade Area (AfCFTA), which could enable Nigeria to become a leading supplier of halal goods and services across Africa.

Shettima stressed the importance of increasing public awareness through strategic orientation campaigns and specialized training programs to enhance Nigeria’s global competitiveness in the halal industry.

Describing the halal economy as inclusive of all stakeholders, Shettima noted that its vast potential aligns with President Tinubu’s “Renewed Hope Agenda.”

He emphasized that the global halal economy is not just limited to Muslim-majority countries; many non-Muslim nations have recognized its value and become leading exporters of halal products. “This alignment with ethical principles and rigorous standards provides a compelling avenue for investment and commerce,” he added, reinforcing Nigeria’s commitment to fostering a dynamic halal economy.

Shettima acknowledged the lack of clarity surrounding compliance with halal investments, which had stifled the sector’s growth. However, he expressed optimism that as Nigerians gain more knowledge and enlightenment, they are embracing ethical investments.

“Nigerians now seek secure products and services that align with transparency and ethical certainty, free from interest-driven practices,” he remarked.

He highlighted the success of Islamic finance instruments, such as Sukuk, which have funded infrastructure projects across Nigeria, as evidence of the broad appeal of halal finance. “As Islamic banks continue to penetrate international markets, we are inspired to position ourselves as leaders in this growing sector,” Shettima added.

Earlier, Deputy Chief of Staff to the President (Office of the Vice President), Sen. Ibrahim Hassan Hadejia, emphasized the importance of the initiative, noting that Nigeria is determined to position itself as a global leader in the halal economy.

Special Assistant to the President on Export Expansion, Aliyu Bunu Sheriff, also highlighted the economic potential of the halal market, stating that increasing Nigeria’s halal exports to Organisation of Islamic Cooperation (OIC) countries could boost the nation’s GDP by $548 million.

In addition, Minister of Agriculture and Food Security, Sen. Abubakar Kyari, revealed that Nigeria’s domestic spending on halal products and services reached approximately $107 billion in 2022 and is projected to grow by 10.7% to $180 billion by 2027. This positions Nigeria as the 8th largest domestic halal economy globally and the second largest in Africa.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, also highlighted the growth potential of halal products, which are not exclusive to Muslims. “There are over 125 products produced in the halal way, presenting a huge opportunity for rapid growth and improved competitiveness in the global market,” he said.

Edun emphasized that the government is collaborating with international bodies such as the Islamic Development Bank (ISDB) and the Arab Bank for Economic Development in Africa (BADEA) to ensure Nigerian halal products meet global standards.

In his keynote address, Secretary-General of the D-8 Organization for Economic Cooperation, Ambassador Isiaka Abdulqadir Imam, emphasized the economic significance of the D-8, which has a combined population of 1.16 billion people and a GDP of $4.92 trillion in 2023. Imam noted that the D-8 is working to boost intra-trade to $500 billion by 2030, with a focus on deepening trade within the halal industry.

The event saw the participation of numerous dignitaries, including Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu; former Minister of Finance and Vice President of Islamic Development Bank Group, Dr. Mansur Muhtar; Managing Director of NEXIM Bank, Abba Bello; and Deputy Governor (Corporate Services) of Central Bank of Nigeria, Dr. Bala Bello.