Shettima: Nigeria must prioritise its strength to become hub of halal economy

Vice-President Kashim Shettima says Nigeria’s economic size provides an advantage in developing a vibrant halal investment sector.

Shettima spoke on Wednesday during the halal economy stakeholders engagement programme in Abuja.

On September 16, the federal government said increasing halal exports would add $1.5 billion to Nigeria’s gross domestic product (GDP) by 2027.

Speaking during the event, the vice-president said for Nigeria to become a hub for opportunities in the halal economy, it must first reassess its weaknesses and prioritise its strength.

“Today’s engagement provides a platform for us to collaborate with key international organisations,” Shettima said.

“This will allow us to develop a comprehensive halal ecosystem and agree on strategies that will position Nigeria as a top halal exporter, targeting high-value markets.

“With the global halal economy projected to reach a market value of $7.7 trillion by 2025, this opportunity is not only recognised by Muslim-majority countries but also seized by non-Muslim nations, which have become leading exporters of halal products.”

Shettima commended the private sector for its immense contributions to driving the halal economy, especially the financial sector, and encouraged stakeholders to partner with President Bola Tinubu’s administration in delivering the halal ecosystem.

Shettima said the African Continental Free Trade Area (AfCFTA) also provides a pathway for Nigeria to expand its halal goods and services across Africa.

He added that public awareness, specialised training programmes, and engagement with global markets would boost Nigeria’s competitiveness in the sector.

‘HALAL MARKET’S POTENTIAL ALIGNS WITH TINUBU’S AGENDA’

Describing halal as an economy that accommodates all actors and stakeholders, the vice-president said the industry holds potentials that align “with the overarching agenda of the president”.

He said the lack of clarity and understanding surrounding compliance with investments in the halal economy had stifled wide potential in savings, business ventures, and investments.

Shettima, however, expressed delight that in an era of knowledge and enlightenment, more Nigerians are now getting rid of outdated concerns and are embracing the need to have a say in how their money is invested.

“They seek secure products and services that align with the principles of transparency and ethical certainty, free from interest-driven practices,” the vice-president said.

“We must, however, note that Nigeria has already embraced the halal economy.

“We have flourishing financial institutions that offer profit-sharing and investment opportunities that resonate with the expectations of savers and investors, regardless of their faith.”

He said the remarkable success of Islamic finance instruments, such as sukuk, which have funded infrastructure projects across the country, is a testament to the widespread appeal of halal finance.

Shettima said as Islamic banks continue to penetrate international markets, Nigeria is inspired to position itself as leader in the growing sector, ensuring that Nigerians fully explore the opportunities it provides.

In his remarks, Ibrahim Hassan Hadejia, deputy chief of staff to the president (office of the vice-president), stressed the importance of the initiative.

“Nigeria, as one of the largest economies in Africa, is launching this programme to engage with the global Halal market. We are determined to position Nigeria as a leader in the Halal economy, not just in Africa but globally,” Hadejia said.

‘INCREASING HALAL EXPORTS COULD BOOST NIGERIA’S GDP’

Also speaking, Aliyu Bunu Sheriff, special assistant to the president on export expansion, said increasing halal exports to the Organization of Islamic Cooperation (OIC) countries from 2 percent to 6 percent over the next four years, “it could boost our GDP by $548 million”.

Sheriff outlined several key objectives of the initiative, including the establishment of a robust regulatory framework for halal certification, increasing consumer awareness about halal products, enhancing production capacity, and collaborating with international halal organisations.