Nigeria signs $7.7trn deal with ith Saudi Arabia

Nigeria has entered into a strategic agreement with Saudi Arabia’s Halal Products Development Company (HPDC) to position the country as a major player in the global halal market, which is valued at $7.7 trillion.

The partnership, unveiled during the Makkah Halal Forum in Saudi Arabia, aims to boost investment, foster technical cooperation, and expand market access across vital sectors such as food production, pharmaceuticals, finance, and livestock.

Vice President Kashim Shettima, represented by Deputy Chief of Staff to the President (Office of the Vice President), Senator Ibrahim Hassan Hadejia, highlighted the significance of the deal.

“This collaboration is an important step in our ambition to not only tap into the lucrative halal market but to establish Nigeria as a leading global player,” Shettima said, according to a statement by Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications.

He added, “We are committed to leveraging this collaboration to create jobs, attract foreign investment, and diversify our economy in line with the Renewed Hope Agenda of President Bola Ahmed Tinubu.”

The agreement was formalized with HPDC, a subsidiary of Saudi Arabia’s Public Investment Fund, represented by its CEO Fahad Alnuhait. The signing ceremony was attended by high-ranking officials, including Saudi Arabia’s Minister of Commerce, Dr. Majid bin Abdullah Al-Qasabi, and leaders from the Makkah Chamber of Commerce and Industry.

Aliyu Bunu Sheriff, Special Assistant to the President on Export Promotion, noted that the partnership aligns with Nigeria’s growing Islamic finance sector, which has already made strides with the introduction of Sukuk bonds and the emergence of Islamic banks like Jaiz Bank, Taj Bank, and Lotus Bank.

Sheriff emphasized the broader potential of the halal economy, saying, “The halal economy extends beyond Muslim consumers. Non-Muslim majority countries like Brazil, Australia, and Thailand are already leveraging the sector for substantial export growth.”

He also noted that organizations like the Islamic Development Bank and the Arab Bank for Economic Development in Africa would provide critical support through capacity building, regulatory development, and financing opportunities.

The Nigerian delegation included key government and private sector figures, such as the Chairman of Dar Al Halal Group, Alhaji Muhammadu Ladan Dikko; Minister of Trade and Investment, Dr. Jumoke Oduwole (represented by Ambassador Nura Rimi); and Managing Director of the Bank of Industry, Mr. Olasupo Olusi (represented by Mrs. Jelilat Ismaila-Ayinde).

This new collaboration builds on efforts initiated during the Halal Economy Stakeholders Engagement Programme at the Presidential Villa, Abuja, where Vice President Shettima highlighted the sector’s potential to significantly boost Nigeria’s GDP through increased exports and strategic import substitution by 2027.