Halal, which means ‘permissible’, is the bedrock of lawfulness of objects, actions or activities under Islamic law. In the purview of Islamic commercial laws, Halal Entrepreneurship is the establishment of businesses which are lawful in Islam.

In an interview with Dr. Lawal Aminu Balal, Assistant Manager, the Branch Operations Department of the Central Bank of Nigeria, featured on the Trust Arthur Islamic Finance Learning Series where he speaks on “the partnership between Halal entrepreneurship and Islamic Financial Institutions.”

According to him, Halal entrepreneurship is a growing business activity in the global economy, which simply entails doing Shariah-compliant businesses.

“For Halal business owner, it goes beyond profit-making, but also bearing the faith of securing the good afterlife, Bala explained.”

Dr. Balal further shared his perspective on CBN regulation on Halal entrepreneurship in Nigeria. He stated that the Central Bank of Nigeria, as a policy making body and custodian of the economy, needs to have an inclusive economic system to widely accommodate this faith-based business.

“Central Bank of Nigeria has several policy frameworks created to achieve inclusive economic development, particularly for MSMEs in link to access to finance that is offered in line with Halal orientation, Bala said.”

Affirming further on this, he mentioned how Halal investment can boost the market. According to him, with standard certification and internal consumption, investment in the Halal industry will be a great opportunity for Nigeria. It will reportedly create a larger manufacturing industry, and boost the real sector of the economy.

“Halal products like health value are being demanded globally and investment in the halal health space will boost the economy, also huge investments in halal will reflect in the capital market, insurance, and real sector of the economy. Dr. Balal further stated that Halal investment is about creating wealth and job opportunities in society.

In his presentation on the “Performance of Halal Entrepreneurship in Partnership with Islamic Financial Institutions. The Assistant Manager, Branch Operations Department of the Central Bank of Nigeria explained that there is a wide gap and low synergy between Halal entrepreneurship and non-interest financial institutions.

Dr. Bala reiterates that the opportunities in the halal industry cannot be overemphasized, fostering the growth of fashion design industry, pharmaceutical, healthcare services, halal orientation, and tourism sectors.

He believes Nigeria’s non-interest Islamic banks and others are yet to leverage 10% of their market potential.
Hence, Dr Bala advocated for sensitization, promotion, and synergy between halal entrepreneurs and non-interest banks, to optimize the growth of Halal industry in the country.