Nigerian Senate Committee Backs Tinubu's National Halal Economy Strategy to Tap into $7.7 Trillion Global Market

Senate Committee Endorses National Halal Economy Strategy

The Nigerian Senate Committee on Finance has officially endorsed President Bola Tinubu's National Halal Economy Strategy, signaling strong legislative support for the initiative. In a statement released on a Saturday, the committee, led by Chairman Senator Sani Musa, lauded the strategy as a 'bold and strategic move' designed to integrate Nigeria into the expansive global halal market, which is estimated to be worth $7.7 trillion.

The endorsement follows the formal unveiling of the strategy by Vice President Kashim Shettima, who represented President Tinubu at the Presidential Villa in Abuja. The Vice President emphasized that the strategy is a 'declaration of our promise to meet global standards with Nigerian capacity and to convert opportunity into lasting economic value,' calling for 'action that is disciplined, inclusive, and measurable' to deliver jobs, exports, and shared prosperity across the nation.

Economic Projections and Diversification Goals

The National Halal Economy Strategy is poised to significantly contribute to Nigeria's economic growth and diversification efforts. Projections indicate that the initiative could add an estimated $1.5 billion to the nation's Gross Domestic Product (GDP) by 2027. Furthermore, the cumulative efforts of the strategy are expected to unlock over $12 billion in economic value for Nigeria by 2030.

The strategy aligns with the administration's broader economic reform agenda, focusing on boosting non-oil revenue, diversifying exports, supporting small and medium enterprises (SMEs), increasing foreign exchange earnings, and creating employment opportunities.

Broad Scope of the Halal Economy

The halal economy extends beyond food products, encompassing a wide array of sectors. Nigeria's strategy aims to leverage opportunities in various segments, including:

• Halal-compliant food exports
• Pharmaceutical and cosmetic value chains
• Halal-friendly tourism
• Ethical finance
• Logistics

The Senate Committee highlighted Nigeria's inherent advantages, such as its vast agricultural resources, a large domestic market, a youthful population, a growing manufacturing sector, and an expanding services industry, as key factors for success in this global market.

International Context and Domestic Potential

Several countries, including the United Kingdom, Canada, Australia, Malaysia, Indonesia, Saudi Arabia, the United Arab Emirates, Turkey, Brazil, Thailand, and Singapore, have successfully utilized halal frameworks to enhance manufacturing, agricultural exports, financial markets, and foreign investment.

Domestically, Nigeria's halal market was valued at approximately $107 billion in 2022, ranking it as the eighth-largest globally and second in Africa, after Egypt. This domestic market is projected to grow to around $180 billion by 2027, underscoring the significant internal demand and potential for growth. The implementation of the National Halal Economy Strategy will be overseen by the Minister of Industry, Trade and Investment.