The domestic consumers’ spending on halal products and services would reach whopping US$180 billion by 2027, the Nigeria Halal Economy Report 2023, has projected.
The report laid bare in Kano on Thursday by Dar Al Halal, an organisation dedicated to promoting halal market in Nigeria, further noted that the domestic spending on halal economy was up to US$107 billion in 2022.
DAILY COMMERCE Nigeria, reports that the value of halal consumer spending worldwide have projected to exceed three trillion U.S. dollars by the end of 2023.
Halal products and services accounted for 4.5 percent of the global total consumer spending in 2017, according to Statista, citing relevant data.
The Report according to the chief executive officer of Dar Al Halal, Muhammadu Dikko Ladan, aims to inspire and empower players including regulators, industries, and investors to grow Nigeria’s presence in the global and regional halal economy.
He said the report aims to: “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 further estimated that Nigeria’s halal economic opportunity would boost the country’s GDP by US$1.6 billion annually (mid scenario) within the next four years through incremental exports, import substitution, and FDI opportunities.
Highlighting the halal trade opportunities for the Africa’s largest economy, the report noted, “Nigeria is the 11th largest exporter of halal products to OIC within the African region. It exported a total of US$379 million in halal products (food, pharma, and cosmetics) to OIC countries.
On global halal market, the report explained that Muslim consumer spending on food, clothing, media and recreation, pharmaceuticals, cosmetics, and travel was worth US$2.3 trillion in 2022.
“Nigeria’s Muslim consumer spend totals US$107 billion, accounting for 4.7% of the global spend and 22.7% of Africa’s spend. Nigeria’s Islamic finance assets were estimated to be worth US$3.3 billion. This positions Nigeria as the second-largest halal market in Africa after Egypt,” it noted.