By Monsurat Abisoye
The Federal Government has called for stronger international collaboration and the adoption of innovative financing mechanisms to address development funding shortfalls affecting emerging economies, particularly Nigeria.
Speaking virtually at the Green Guarantee Group (GGG) high-level stakeholders’ roundtable on Mainstreaming Financial Guarantees in Nigeria in Abuja, the Minister of Solid Minerals Development, Dele Alake, said strategic partnerships between governments, development finance institutions, and private investors are essential to unlocking investments needed for green industrialisation, business growth, and sustainable economic development.
Alake noted that many viable projects fail to attract funding due to market uncertainties, stressing that financial guarantees and risk-sharing instruments are crucial for reducing investment risks and mobilising private capital. He added that Nigeria is pursuing policies that support climate action, renewable energy, mining, and agriculture, while emphasising the importance of credit access for Micro, Small, and Medium Enterprises (MSMEs) to expand, innovate, and create jobs.
Chair of the Green Guarantee Group, Lars-Hendrik Roeller, described financial guarantees as effective tools for boosting investor confidence and lowering investment risks, noting that Nigeria, as Africa’s largest economy and a GGG Co-Chair, is well-positioned to champion innovative financing solutions across the continent.
Also speaking, GGG Co-Chair and Permanent Secretary of the Ministry of Solid Minerals Development, Faruk Yabo, said the roundtable would examine how guarantee-backed financing can support priority projects in renewable energy, agriculture, and solid minerals. He explained that guarantees help connect institutional investors seeking secure returns with viable projects that are often perceived as risky.
Yabo added that Nigeria’s leadership role within the GGG is significant, as discussions from the event could influence financing opportunities for solar energy projects, mining operations, agricultural platforms, and environmental restoration initiatives.
International partners reaffirmed their support for Nigeria’s economic transformation. Germany’s Ambassador to Nigeria and ECOWAS, Annett Günther, said financial guarantees can mobilise up to six times more private investment than traditional development assistance, while the United Nations Development Programme Resident Representative, Elsie Attafuah, described guarantees as catalysts for energy transition, job creation, infrastructure development, and inclusive growth.
The President of the Africa Finance Corporation, Samaila Zubairu, represented by Dr Musa Salwara, said Africa’s challenge is not a lack of opportunities but limited bankable projects, adding that the corporation is ready to support Nigeria in translating financing frameworks into practical investments. The event concluded with technical sessions focusing on local currency financing, project pipeline development, data aggregation, and regulatory reforms to encourage guarantee-backed investments.