Saudi Arabia and Nigeria signed a strategic agreement to boost both countries’ roles in the $7.7 trillion halal economy. The deal, formalized with Saudi’s Halal Products Development Company (HPDC), strengthens bilateral economic cooperation. It aims to position Nigeria as a key global halal market contributor. The partnership underscores shared goals to expand trade and halal industry ties.
The deal focuses on food production, pharmaceuticals, Islamic finance, and livestock, leveraging Nigeria’s vast agricultural resources and Saudi Arabia’s halal industry leadership. Both nations will share technical expertise, enhance trade routes, and streamline halal certification processes to boost cross-border commerce.
Strategic Alignment with Saudi Leadership
Nigeria’s Vice President Kashim Shettima hailed the agreement at the Makkah Halal Forum as a ‘game-changer’ for Nigeria’s economy. He linked it to President Bola Tinubu’s Renewed Hope Agenda, prioritizing diversification. The ceremony brought together Saudi Commerce Minister Dr. Majid Al-Qasabi and HPDC CEO Fahad Alnuhait. Their participation underscores alignment with Saudi Arabia’s strategy to cut oil dependency through non-traditional sectors. This mirrors Crown Prince Mohammed bin Salman’s reforms, emphasizing diversification and global partnerships.
Special Assistant Aliyu Sheriff highlights Nigeria’s expanding Islamic finance sector in the agreement.
Nigeria issues Sukuk bonds and runs Islamic banks like Jaiz Bank to drive financial inclusion.
Nigeria integrates Saudi technical expertise to standardize halal certification processes and boost export competitiveness in livestock and agricultural products.
Technical Cooperation and Market Access
Central to the accord is Saudi HPDC’s role in facilitating market access. The company, a subsidiary of Saudi Arabia’s Public Investment Fund, will support capacity building and regulatory harmonization. Transitioning from rhetoric to action, the deal aligns with Saudi Arabia’s 2030 vision to codify laws and modernize economic frameworks, as noted in recent BTI Transformation Index reports.
Beyond trade, the pact reflects Nigeria’s pivot toward strategic alliances with Gulf nations. As Saudi Arabia balances diplomatic initiatives like Ukraine peace talks with domestic reforms, this partnership positions both nations to capitalize on global halal demand—projected to grow 8.2% annually by 2030.
Transitioning Nigeria from a hydrocarbon-dependent economy to a halal powerhouse, this collaboration promises jobs, foreign investment, and a renewed global identity for Africa’s largest economy.
