Minister of Solid Minerals Development, Dr Dele Alake, has called for stronger international collaboration to bridge development financing gaps in Nigeria and other emerging economies, saying innovative financial instruments are needed to unlock investments and drive sustainable growth.
Alake made the call on Tuesday while speaking virtually at the Green Guarantee Group (GGG) High-Level Stakeholders’ Roundtable on Mainstreaming Financial Guarantees in Nigeria, held in Abuja.
In a statement by the ministry’s head of press and public relations department, Kania Maliki A, the minister noted that greater cooperation among governments, development finance institutions, private investors and international partners would help mobilise capital for green development initiatives, support small and medium-sized enterprises (SMEs) and accelerate economic transformation.
He noted that sectors such as renewable energy, mining, agriculture, infrastructure and climate-resilient industries require substantial long-term investments, which can be facilitated through guarantee instruments and other risk-sharing mechanisms.
According to him, many viable projects fail to attract funding because of concerns over market uncertainties and investment risks.
“We are deliberately pursuing policies that encourage climate action, greater participation in higher-value segments of global supply chains and sustainable economic growth. However, many projects continue to face financing constraints. This is why guarantee instruments and innovative risk-sharing mechanisms are critical,” he said.
Alake also stressed the importance of improving access to finance for Micro, Small and Medium Enterprises (MSMEs), describing them as key drivers of employment, innovation and economic growth.
He said the roundtable provided an opportunity for policymakers, financial institutions, development partners and private sector stakeholders to identify practical solutions to Nigeria’s financing challenges.
Speaking at the event, Chairman of the Green Guarantee Group, Mr Lars-Hendrik Roeller, said guarantees have emerged globally as effective tools for reducing investment risks, boosting investor confidence and unlocking private capital for climate and development projects.
Roeller said the focus should now shift from policy discussions to implementation through coordinated national initiatives and stakeholder partnerships.
He disclosed that the GGG is working to establish a stronger global guarantee framework capable of supporting sustainable investments, particularly in developing countries.
According to him, Nigeria’s role as Africa’s largest economy and co-chair of the group places it in a unique position to champion innovative financing solutions that can drive green industrialisation across the continent.
The GGG chairman also revealed plans to deepen international cooperation through an alliance of countries aimed at strengthening guarantee systems and expanding climate finance mechanisms.
Co-Chair of the Green Guarantee Group and Permanent Secretary of the Ministry of Solid Minerals Development, Engr Faruk Yabo, said the workshop was designed to strengthen understanding of guarantee instruments and their application within Nigeria’s economic landscape.
He noted that Nigeria already possesses key institutions that form part of its guarantee and risk-sharing architecture, including InfraCredit, NIRSAL, the Nigeria Credit Guarantee Company, the Nigeria Sovereign Investment Authority and the Infrastructure Bank.
Yabo said discussions at the roundtable would focus on identifying existing gaps and exploring ways to connect Nigeria’s domestic financing architecture with global guarantee mechanisms provided by organisations such as the African Development Bank, World Bank Group and other international partners.
He described guarantees as a bridge between institutional investors seeking secure returns and development projects that are viable but often perceived as risky.
“Nigeria’s position as co-chair of the GGG is not symbolic. It reflects recognition of the country’s enormous investment needs in power, agriculture, infrastructure, solid minerals and the wider green economy,” he said.
German Ambassador to Nigeria and ECOWAS, Ms Annett Günther, said African-European partnerships remain essential to addressing climate adaptation and development challenges, noting that Africa’s climate financing needs remain significant.
She said guarantees have proven effective in reducing investment risks and can mobilise several times more private capital than traditional development finance instruments.
Günther reaffirmed Germany’s commitment to supporting Nigeria’s climate finance architecture through partnerships with relevant institutions aimed at unlocking private-sector investment.
Minister of Budget and Economic Planning, Senator Abubakar Bagudu, described the roundtable as timely and significant, expressing confidence that its outcomes would contribute to achieving the Sustainable Development Goals (SDGs).
The Resident Representative of the United Nations Development Programme (UNDP) in Nigeria, Ms Elsie Attafuah, said guarantees should be seen not only as financial instruments but also as development accelerators capable of driving Nigeria’s energy transition, industrialisation and inclusive growth.
“The conversation matters because it can mobilise investment that creates jobs, expands energy access, strengthens infrastructure and accelerates industrialisation, improving the lives of millions of Nigerians,” she said.
Also speaking, President of the Africa Finance Corporation (AFC), Mr Samaila Zubairu, represented by Dr Musa Salwara, said Africa’s challenge was not a shortage of opportunities but the difficulty of making projects bankable.
He stressed the need to build strong project pipelines, strengthen institutional capacity and attract regional and global partnerships.
The event featured panel discussions and technical sessions on data transparency, investor confidence, local currency financing, low-cost capital mobilisation, regulatory reforms and the development of guarantee-backed investment projects across critical sectors of the economy.
