Budget Minister Urges More German Investment In Nigeria

Minister of Budget and Economic Planning, Senator Abubakar Bagudu, has urged German businessmen to deepen their investment in Nigeria, saying that President Bola Tinubu’s reforms have broadened investment opportunities in the country.

The minister spoke at the Nigeria–Germany Business Day, themed “Germany and Nigeria: Cooperating for Development and Business Promotion,” in Lagos on Monday night, and highlighted the gains of the reform, including macroeconomic stability, which he said has made the economy more predictable for investment.

“Under President Bola Tinubu’s leadership, decisive measures have been implemented to restore macroeconomic stability, improve fiscal sustainability, strengthen investor confidence, and reposition the economy for long-term growth,” he told participants at the forum hosted by the German Embassy.

He explained that the key reforms, including the removal of fuel subsidies, liberalisation of the foreign exchange market, enhanced revenue mobilisation, and broader structural adjustments, were difficult but necessary measures to promote long-term, sustainable economic growth and to restore investor confidence in the country.

Bagudu told participants, including senior government officials, investors, and business leaders from both countries, that the reforms’ impact is gradually becoming apparent.

According to him, “Nigeria’s revenue performance improved significantly, with total collected revenue rising from about N19.9 trillion in 2023 to over N28 trillion in 2025, exceeding government targets.

“Foreign exchange reserves rose to over US$46 billion in early 2026 — the highest level in almost eight years — helping to stabilise the foreign exchange market and strengthen investor confidence.”

The minister explained that inflation, which had reached elevated levels during the adjustment period, has shown signs of gradual moderation.

He noted that international credit rating agencies, including Fitch and S&P Global, revised Nigeria’s outlook to Stable, reflecting growing confidence in the country’s reform trajectory and macroeconomic management.

“Nigeria’s capital market also delivered a strong performance in the first quarter of 2026, with the Nigerian Exchange among the better-performing emerging markets globally,” the minister said, adding, “Importantly, Nigeria remains off the FATF grey list, reinforcing confidence in the country’s financial and regulatory systems.”

Bagudu said these significant leaps should encourage German businesses to explore the growing opportunities in the Nigerian economy under President Tinubu’s management, and to build on the existing economic relations between Nigeria and Germany.

Describing the country as “one of Africa’s most significant long-term growth opportunities,” the minister highlighted that bilateral trade between the two countries rose by almost 30 per cent to approximately €3 billion in 2025, making Nigeria Germany’s second-largest trading partner in Sub-Saharan Africa.

He stated that more than 90 German companies currently operate in Nigeria across key sectors, including energy, manufacturing, healthcare, logistics, and industrial services.

Speaking about Nigeria’s long-term economic vision, the minister reiterated the government’s commitment to achieving a One Trillion Dollar economy by 2030 through the investment-led National Development Plan (2026–2030), which he said places the private sector at the centre of national transformation.

He emphasised that sustainable growth would require stronger partnerships with domestic and international investors, particularly in priority sectors including renewable energy, agro-processing, manufacturing, the digital economy, and technical and vocational education.

The minister also highlighted emerging opportunities for German investment in Nigeria’s energy transition, agriculture and agro-processing, industrialisation, digital innovation, and skills development, that Nigeria’s Energy Transition Plan requires substantial private investment to expand energy access and accelerate clean energy deployment.

He said ongoing programmes in agro-industrial processing and digital skills development continue to create new opportunities for partnership and growth.

Bagudu encouraged both Nigerian and German businesses to convert the engagements from the Business Day into concrete investments and long-term partnerships that can drive industrial growth, job creation, technology transfer, and shared prosperity between the two countries.