Driven by one of the largest global Muslim populations, Nigeria has become the world’s eighth-largest domestic halal economy market. Domestic spending on halal economy products and services in Nigeria reached US$107 billion in 2022, and it is expected to grow at a CAGR of 10.7% to reach US$180 billion by 2027.
The Nigeria Halal Economy Report 2023 aims to inspire and empower government entities in Nigeria, industries, and investors to grow Nigeria’s presence in the global and regional halal economy. Simplifying trade regulations, enhancing production competitiveness, increasing consumer awareness, and fostering partnerships are some strategies that can help Nigeria develop and grow its halal economy. The report offers insights and recommendations to enable Nigeria to tap into the potential of its halal market and contribute to the growth of the global halal industry.
The report indicates that incremental export and import substitution alone can boost the country’s GDP by US$1.49 billion. Nigeria’s exports currently represent only 5.7% of Africa’s US$4.2 billion halal product exports to OIC countries. If Nigeria increases its share of exports to the OIC from 2% to 6% (mid-scenario) in the next four years, its exports to the OIC will increase from US$240 million to US$788 million, boosting Nigeria’s GDP by US$548 million. Some key products Nigeria should prioritize for exports include cocoa preparations, meat and edible meat offal, sugar and confectionery, live animals, and medicaments.
Nigeria currently heavily relies on imports, accounting for 70-80% of its goods consumed. It exports raw materials, but imports finished goods. Nigeria is a net importer of halal products (food, pharmaceuticals, and cosmetics traded to and from the world), with net imports totalling US$5,393 million in 2021. Through decisive import substitution strategies, if Nigeria can reduce its imports of halal products by 15% (mid-scenario), it will increase the GDP by US$938 million in the next four years.
The “Nigeria Halal Markets Report 2023” provides 16 strategies as part of a national halal economy framework for Nigeria to achieve the goal of boosting GDP by US$ 1.6 billion by 2027. Some key strategic priorities covered in this report include:
Becoming a top halal exporter through targeting high-value OIC countries and prioritizing halal product segments.
Government and local companies to expose the halal market opportunity to international investors.
Invest in the adoption of technologies to improve agricultural yield, reduce losses, and improve traceability.
Increase regional exports through intra-Africa trade deals, where Nigeria should adopt a leading role.