Government says halal economy strategy will support SMEs and position Nigeria in the fast-growing global market.
As part of its economic policies and reforms, the President Bola Tinubu administration is focusing strategically on developing the halal ecosystem to boost the economy, the Deputy Chief of Staff to the President (Office of the Vice President), Senator Ibrahim Hassan Hadejia, has said.
Hadejia told THISDAY on the sidelines of the Islamic Development Bank (IsDB) Group Annual Meeting in Baku, Azerbaijan, that barely a year ago, the Tinubu administration began developing a halal ecosystem for Nigeria to tap into one of the fastest-growing sectors of the global economy.
According to him, Nigeria is the seventh-largest halal consumer country in the world and the second largest in Africa.
“With the government now coming in to develop the ecosystem, helping with certification and infrastructure, we want to tap into the fastest-growing sector of the global economy,” he said.
He noted that the halal economy, once seen as a niche religious market, has expanded significantly and is projected to reach about $7 trillion.
“It’s simply economy, and we believe that Nigeria needs to move in and tap into that very fast-growing sector because we have the numerical advantage.
“Even our local economy is a market in itself, let alone shifting towards exporting livestock and derivatives, considering that we have the largest livestock population on the African continent.”
Hadejia said the establishment of the Ministry of Livestock would support the initiative, adding that Nigerian livestock is in high demand in the Middle East and Arabian countries because of the unique flavour of Nigerian goat meat.
He said the government aims to integrate existing informal trade into a broader economic policy.
On the impact of the halal ecosystem on ordinary Nigerians, Hadejia said the focus is on creating micro, small and medium enterprises (MSMEs).
“We’re talking of MSMEs. We’re not talking about mega industries out of the reach of the common man.
“By the time we establish that economic framework, it will be part of the government’s economic inclusion initiative. This is an ecosystem from the ground up, moving directly to the production sector.”
He also highlighted reforms in the foreign exchange market, oil sector and infrastructure development, saying they would have a significant impact on the economy in the coming years.
According to him, Nigeria’s inflation is largely driven by food inflation, which in turn is affected by logistics challenges. He said improvements in infrastructure would help reduce food price disparities across the country.
Hadejia also praised the Islamic Development Bank’s contributions to the Nigerian economy, describing its financing as affordable and less complicated.
He said the lower cost and shared-risk model of non-interest financing have made the bank increasingly attractive, adding that non-interest banking now accounts for almost 18 per cent of Nigeria’s banking sector.
