Will Nigeria tap halal market to boost GDP?

Nigeria is eyeing the potential of tapping into the halal export market to further diversify its economy and boost GDP. The federal government sees an opportunity in halal exports, positioning Nigeria as the eighth largest domestic halal economy globally. To discuss this strategic plan and the challenges facing Nigeria's trade industry, Bamidele Ayemibo, CEO of 3T Impex Consulting, joined CNBC Africa for an insightful conversation. Ayemibo highlighted the importance of strategic planning and a gradual approach towards entering the halal market, emphasizing the need for certification to meet market requirements. Ayemibo stressed the significance of increasing export readiness and enforcement to address challenges in Nigeria's trade sector. The issue of export readiness remains a key focus, with a call for policies supporting value addition and manufacturing to enhance the country's export capacity. Notably, Nigeria faces hurdles in exporting agricultural products, and there is a need to amplify efforts in this sector. When discussing the potential benefits of tapping into the halal market, Ayemibo acknowledged the vast opportunities in sectors like food, beverages, pharmaceuticals, cosmetics, garments, and banking. He underlined the importance of holistic development across various sectors to maximize export potential and cater to the growing global Muslim population's demand. The conversation shifted to Nigeria's engagement in the Africa Continental Free Trade Area (AFCFTA). While progress has been made, challenges persist in fully leveraging the agreement. Ayemibo noted that the AFCFTA offers immense opportunities for intra-African trade but emphasized the need for increased government support and patronage to drive engagement effectively. Reflecting on Nigeria's second-quarter trade data, Ayemibo pointed out a 3.76% decline in total merchandise trade to 31.89 trillion naira. While there was a year-on-year increase in export volume driven by solid minerals, manufactured goods, and agriculture, challenges like heavy imports and foreign exchange consumption on items that could be locally produced remain. The conversation wrapped up with a call for government prioritization of non-oil exports and a comprehensive strategy to boost Nigeria's export sector. A concerted effort in export readiness, value addition, and policy support could propel Nigeria towards sustainable economic growth through diversified trade opportunities. As Nigeria navigates its path towards tapping into the halal market and addressing trade challenges, strategic planning, policy reforms, and sector-specific initiatives will be critical in realizing the country's export potential and driving overall economic development.