FG Commits To Sustainable Financing For Rapid Economic Growth

The federal government has reaffirmed its commitment to advancing sustainable financing and green investment as part of broader efforts to stimulate economic growth, reduce poverty and accelerate inclusive national development.

Speaking at a roundtable on Mainstreaming Financial Guarantees in Nigeria, hosted by the Ministry of Solid Minerals Development, minister of Budget and Economic Planning, Senator Abubakar Bagudu, emphasised the critical role of financial guarantees in unlocking investment, de-risking strategic sectors, and supporting Nigeria’s transition towards a greener, more resilient economy.

According to a statement that was issued by his office, the minister, who attended the roundtable as a special guest, commended efforts to convene key stakeholders to discuss innovative financing mechanisms to address development and climate-related challenges.

He also expressed appreciation to the German government for its continued support for reform-driven initiatives to strengthen Nigeria’s development agenda.

Senator Bagudu described financial guarantees as proven instruments for mobilising investment in sectors that often struggle to attract traditional financing, noting that such mechanisms have achieved success globally by catalysing private capital and expanding economic opportunities.

He cited the World Bank’s Multilateral Investment Guarantee Agency (MIGA) as an example of how guarantees have helped unlock investment by reducing risk and boosting investor confidence in strategic sectors.

According to the minister, Nigeria is also making deliberate efforts to strengthen domestic guarantee systems through initiatives such as the establishment of the National Credit Guarantee Agency, which he said reflects the President Bola Tinubu administration’s commitment to improving access to financing and stimulating economic activity.

“We are pleased to have this opportunity to deepen our understanding of the work of the Green Guarantee Group and, more importantly, explore how Nigeria can partner more effectively to maximise the benefits of guarantee mechanisms in ways that support economic expansion while advancing green and sustainable development priorities,” he stated.

The minister noted that although the federal government’s macroeconomic reforms are improving Nigeria’s attractiveness to investors, green and climate-sensitive sectors still require targeted interventions to close financing gaps and attract private capital.

He stressed that environmental and climate-related challenges remain major drivers of poverty and insecurity, particularly in areas such as water access, irrigation and agricultural productivity, where investments are often constrained by risk concerns and weak financing models.

Using water stress as an example, Senator Bagudu explained that inadequate access to affordable irrigation water continues to undermine agricultural productivity and fuel economic inequalities in many communities. He added that guarantee mechanisms could play a major role in reducing risks and encouraging investment in such critical sectors.

The minister further called for greater ambition in global development financing, urging multilateral institutions and development partners to explore innovative guarantee frameworks to mobilise larger investments for developing countries.

He observed that institutions such as the United Nations possess the technical expertise, country-level understanding and institutional credibility required to strengthen guarantee systems that can attract global capital to underserved sectors in emerging economies.

Senator Bagudu, however, emphasised that Nigeria must proactively position itself to benefit from guarantee initiatives by identifying opportunities, creating stronger demand for investment and engaging institutions such as the Green Guarantee Group to develop instruments tailored to the country’s development priorities.

He further noted that mainstreaming green guarantees may require policy, financial and accounting reforms to strengthen incentives for sustainable investment and improve implementation outcomes.

Reaffirming the Federal Ministry of Budget and Economic Planning’s commitment, the minister pledged to continue collaborating with stakeholders, including the Ministry of Finance, development partners, and state governments, to strengthen budget frameworks that support green investments across all 36 states and the Federal Capital Territory.

He linked the growing conversation about financial guarantees to Nigeria’s long-term economic ambitions, including the Federal Government’s aspiration to build a one-trillion-dollar economy, and expressed confidence in the country’s capacity to absorb green financing that promotes inclusion, prosperity and sustainable development.

Senator Bagudu described the roundtable as timely and significant, urging stakeholders to strengthen partnerships and leverage innovative financing instruments to unlock opportunities for economic transformation.

“We must continue to work together to build a more sustainable ecosystem that delivers lasting benefits for all Nigerians,” the minister said.