Nigeria, Germany Sign €365m Investment Deal to Support Energy, Agriculture

Nigeria and Germany have signed a €365 million development and investment partnership to support economic growth, energy access, agriculture, skills development and private-sector expansion in Nigeria.

The agreement was signed on Thursday at the German Embassy in Abuja by the Minister of Budget and Economic Planning, Senator Abubakar Bagudu, the Minister of State for Budget and Economic Planning, Dr Doris Uzoka-Anite, and senior German officials.

The deal includes a €65 million financial and technical cooperation commitment from Germany. It also provides a €300 million Export Credit Guarantee financing framework to support long-term investment in key sectors.

Speaking at the event, Uzoka-Anite said the partnership showed both countries’ commitment to development, innovation and sustainable financing.

She said the agreement would support Nigeria’s efforts to improve lives, deepen reforms and attract more investment into strategic sectors.

Key sectors covered

According to the statement, the partnership will focus on agriculture, climate and energy transition, economic development, skills acquisition, health systems and peace-building.

Uzoka-Anite said the programmes would align with Nigeria’s National Development Plan 2026 to 2030 and the country’s Agenda 2050 framework.

She added that the partnership comes at an important time as Nigeria continues economic reforms under President Bola Tinubu.

Germany backs Nigeria’s reforms

Germany’s Ambassador to Nigeria, Annett Günther, said the agreement followed several rounds of bilateral discussions between both countries.

She said the negotiations involved representatives from nine Nigerian ministries, German development institutions, the European Union, development partners and members of the diplomatic community.

Philip Knill, Deputy Director General of Germany’s Federal Ministry for Economic Cooperation and Development, described Nigeria as a strategic partner in Africa.

He said Germany sees Nigeria as important to regional trade, peace, security and economic integration.

German companies eye Nigeria

Knill said German businesses are exploring opportunities in Nigeria’s power, agriculture, digital economy and industrial sectors.

He listed Siemens, SAP, Bayer and STIHL among major German companies looking at investment opportunities in Nigeria.

He also commended Nigeria’s macroeconomic reforms, including foreign exchange liberalisation, tax reforms and food security efforts.

According to him, such reforms are important for attracting long-term capital into the country.

€300m credit line for trade

Knill said Germany’s Ministry for Economic Affairs and Energy had offered a €300 million export credit line to support trade and investment between both countries.

He also highlighted results from existing Nigeria-Germany programmes.

According to him, more than 16,000 small and medium-sized businesses have recorded income growth through joint initiatives.

He said about 600,000 smallholder farming households have benefited from training programmes that improved productivity and incomes by up to 90 per cent.

He added that more than 70,000 Nigerians are benefiting from mini-grid energy projects supported by the partnership.

Support for power sector

Germany also restated its support for Nigeria’s Presidential Power Initiative through Siemens.

Knill said the project aims to expand Nigeria’s electricity grid capacity to 25 gigawatts and improve access to cleaner and more reliable power.

Both countries said they would work to turn the new agreement into measurable development outcomes through stronger institutions, private-sector investment and strategic project delivery.