Vice President Kashim Shettima has projected Nigeria to turn out to be the main hub for alternatives within the world halal financial system.
Shettima said that Nigeria’s financial and demographic measurement locations it in a first-rate place to develop a vibrant funding sector inside the world halal financial system, which is projected to succeed in a market worth of $7.7 trillion by 2025.
He made this assertion through the Halal Economic system Stakeholders Engagement Programme held on the Banquet Corridor of the Presidential Villa, Abuja, on Wednesday.
Senior Particular Assistant to the Vice President on Media and Communication, Stanley Nkwocha, disclosed particulars of Wednesday’s engagement in a press release titled ‘VP
Shettima: Nigeria Will Be a Main Hub of $7.7tn International Halal Market.’
Nonetheless, the VP famous that Nigeria should first reassess its weaknesses and prioritise its strengths to realize this financial milestone.
“For Nigeria to turn out to be a hub of alternatives within the world halal financial system, we should prioritise our strengths and reassess our weaknesses. Right now’s engagement supplies a platform for us to collaborate with key worldwide organisations.
“It will enable us to develop a complete halal ecosystem and agree on methods that may place Nigeria as a prime halal exporter, focusing on high-value markets,” he said.
The Vice President counseled the non-public sector for its important “contributions to driving the halal financial system, notably within the monetary sector,” whereas encouraging all stakeholders to associate with President Bola Tinubu’s administration in growing the halal ecosystem.
“To make sure this, we should entice worldwide funding by showcasing the huge alternatives inside Nigeria’s halal sector via investor summits, roadshows, and enterprise matchmaking occasions.
“The growth of regional commerce, notably via the African Continental Free Commerce Space, additionally supplies us with a pathway to turn out to be a number one provider of halal items and companies throughout Africa.
“Subsequently, we should improve public consciousness via strategic orientation campaigns, specialised coaching programmes, and deeper engagement with the worldwide market to reinforce the visibility and competitiveness of Nigeria’s halal ecosystem,” he asserted.
Describing halal as an financial system that accommodates all actors and stakeholders, VP Shettima famous that the halal market holds huge potential that aligns “with the overarching agenda of His Excellency, President Bola Tinubu.”
On why the nation will turn out to be a number one hub for funding within the halal financial system, the VP mentioned, “Nigeria’s financial and demographic measurement offers us a novel benefit in growing a vibrant halal funding sector.
“With the worldwide halal financial system projected to succeed in a market worth of $7.7 trillion by 2025, this chance is recognised not solely by Muslim-majority nations but in addition by non-Muslim nations, which have turn out to be main exporters of halal merchandise.
“They perceive that the halal ecosystem is designed to satisfy the best requirements of high quality, security, and sustainability most well-liked by particular shoppers. This alignment with moral rules and rigorous requirements supplies a compelling avenue for funding and commerce and reinforces our dedication to fostering a dynamic halal financial system in Nigeria.”
The Vice President additional famous that the dearth of readability and understanding surrounding compliance with investments within the halal financial system had stifled important potential in financial savings, enterprise ventures, and investments.
Shettima expressed delight that in an period of information and enlightenment, extra Nigerians at the moment are shedding outdated considerations and are, as an alternative, embracing the necessity to have a say in how their cash is invested.
He continued: “They search safe services and products that align with the rules of transparency and moral certainty, free from interest-driven practices. We should, nonetheless, word that Nigeria has already embraced the halal financial system.
“We’ve got flourishing monetary establishments that provide profit-sharing and funding alternatives that resonate with the expectations of savers and traders, no matter their religion. The outstanding success of Islamic finance devices, akin to Sukuk, which have funded infrastructure tasks throughout the nation, is a testomony to the widespread attraction of halal finance.
“As Islamic banks proceed to penetrate worldwide markets, we’re impressed to place ourselves as leaders on this rising sector, guaranteeing that Nigerians absolutely discover the alternatives it supplies.”
Earlier, Deputy Chief of Workers to the President (Workplace of the Vice President), Ibrahim Hadejia, emphasised the significance of this initiative, saying, “Nigeria, as one of many largest economies in Africa, is launching this programme to have interaction with the worldwide halal market. We’re decided to place Nigeria as a pacesetter within the halal financial system, not simply in Africa however globally.”
Particular Assistant to the President on Export Enlargement, Aliyu Sheriff, highlighted halal financial potential, noting that “if we will improve our halal exports to the Organisation of Islamic Cooperation nations from 2 per cent to six per cent over the subsequent 4 years, it may increase our GDP by $548 million.”
Sheriff listed among the key aims of the initiative, together with establishing a sturdy regulatory framework for halal certification, rising shopper consciousness about halal merchandise, enhancing manufacturing capability, and partnering with worldwide halal organisations.
Minister of Agriculture and Meals Safety, Abubakar Kyari, supplied key statistics, saying, “Nigeria’s home spending on halal services and products reached roughly $107 billion in 2022.
“This sector is projected to develop at a price of 10.7 per cent, reaching $180 billion by 2027. This positions Nigeria because the eighth largest home halal financial system globally and the second largest in Africa,” he added.
Minister of Finance and Coordinating Minister of the Economic system, Wale Edun, mentioned, “Halal merchandise will not be only for Muslims. There are over 125 merchandise which might be produced within the halal means. This presents an enormous alternative for fast progress and improved competitiveness, enhancing our potential to export.”
He defined that the federal government is collaborating with worldwide our bodies such because the Islamic Growth Financial institution, Arab Financial institution for Financial Growth in Africa, and Halal Product Growth Firm, Saudi Arabia, to make sure Nigerian halal merchandise meet world requirements.
In a keynote speech, the Secretary-Common of the D-8 Organisation for Financial Cooperation, Ambassador Isiaka Abdulqadir Imam, emphasised the D-8’s financial significance primarily based on its statistics, saying with a mixed inhabitants of 1.16 billion folks and a GDP of $4.92 trillion in 2023, the D-8 holds substantial financial potential.
He mentioned the organisation, of which Nigeria is a member, has additionally superior commerce facilitation via the Preferential Commerce Settlement and is working to spice up intra-trade to $500 billion by 2030.
“To realize this, one among our programmes is to deepen our commerce within the halal trade, and for this objective, we now have established the D-8 Complete Technique on Tourism and the Crescent Moon Initiative.
“At present, intra-trade among the many D-8 members stands at US$146 billion. This doesn’t replicate the true potential of a market with 1.16 billion folks,” Imam mentioned.