Being a speech delivered by His Excellency, Senator Kashim Shettima, GCON, Vice President of the Federal Republic of Nigeria, at the Halal Economy Stakeholders Engagement Programme, held at the State House Banquet Hall, Abuja, on Wednesday, September 17, 2024.
Protocol,
The global economy, as we know it, is fast evolving, and so are the opportunities it provides across sectors. What has become evident is the role of inclusion in driving the economic growth of every nation. This is why I am excited by our collective desire to structure an economy that accommodates all actors and stakeholders. The market we gather here to support today holds vast potential, aligning with the overarching agenda of this His Excellency, President Bola Ahmed Tinubu. I am, therefore, delighted to join you for this timely engagement and welcome you to the dawn of a great era.
Nigeria’s economic and demographic size gives us a unique advantage in developing a vibrant halal investment sector. 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. They understand that the halal ecosystem is designed to meet the highest standards of quality, safety, and sustainability preferred by specific consumers. This alignment with ethical principles and rigorous standards provides a compelling avenue for investment and commerce and reinforces our commitment to fostering a dynamic halal economy in Nigeria.
For too long, the lack of clarity and understanding surrounding compliance with halal investments has stifled vast potential in savings, business ventures, and investments. However, we are now in an era of knowledge and enlightenment. More people are unlearning outdated concerns and embracing the need to have a say in how their money is invested.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.
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. 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. As Islamic banks continue to penetrate international markets, we are inspired to position ourselves as leaders in this growing sector, ensuring that Nigerians fully explore the opportunities it provides.
There is a clear reason why Sukuk bonds have been embraced across all regions of Nigeria. Not only are they legally recognised, with public companies, state governments, and government agencies authorised to issue them, but they have also been utilised for critical infrastructure projects, including road construction undertaken by both Federal and state governments. This widespread use of Sukuk highlights Nigeria’s commitment to diversifying its economy through Islamic finance, making a compelling case for the halal economy while providing secure investment options supported by the Federal Government.
For Nigeria to become a hub of opportunities in the global halal economy, we must prioritise our strengths and reassess our weaknesses. Today’s engagement provides a platform for us to collaborate with key international organisations. 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.
Distinguished ladies and gentlemen, while I commend the private sector for its tremendous contributions to driving the halal economy, particularly in the financial sector, I also encourage all stakeholders to partner with us in delivering this ecosystem. To ensure this, we must attract international investment by showcasing the vast opportunities within Nigeria’s halal sector through investor summits, roadshows, and business matchmaking events.
The expansion of regional trade, particularly through the African Continental Free Trade Area (AfCFTA), also provides us with a pathway to become a leading supplier of halal goods and services across Africa. Therefore, we must increase public awareness through strategic orientation campaigns, specialised training programmes, and deeper engagement with the global market to elevate the visibility and competitiveness of Nigeria’s halal ecosystem.
Once again, I welcome you all to this critical moment where we lay the foundation for a future brimming with opportunities for Nigeria and beyond. I have no doubt that with robust monitoring and evaluation systems, and funding secured through government budgets, international grants, and public-private partnerships, we can claim a prominent place in the global halal economy.
Thank you, and may God bless us all.
