Nigeria and Germany have sealed a €65 million development cooperation deal and a €300 million export credit facility aimed at unlocking private investment and easing financing for key sectors.

Vanguard reported that the agreement was reached in Abuja on Wednesday at the opening of a two-day bilateral negotiations on development cooperation between Germany’s Federal Ministry of Economic Cooperation and Development and Nigeria’s Ministry of Budget and Economic Planning.

BMZ Commissioner for Africa and Director of the Africa Directorate, Philipp Knill, who led the German delegation, said the €65 million component would focus on concessional financing for small businesses, renewable energy and women-led enterprises, while the larger €300 million export credit line is structured to support public and private sector investments.

Knill said the partnership is shifting towards catalytic funding designed to crowd in private capital, particularly through the Development Bank of Nigeria and targeted sector programmes.

He noted that energy remains central, with ongoing collaboration on the Presidential Power Initiative expected to scale transmission capacity by 25 gigawatts and expand access to reliable electricity.

“The funds that will be discussed during these negotiations will be catalytic. They have the goal to mobilise the private sector. The €300 million export credit line is open for public and private actors. When there is business between Germany and Nigeria, for example, investments in the power sector on transmission, that credit line can bring down costs for the companies involved and then for sure bring down risk and help implement,” he said.

Knill added that investments are also being directed at agri-business value chains including cashew, tomato and potato production, alongside digital solutions, governance and youth skills development partnerships with German firms.

Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, said the engagement reflects a long-standing partnership that has evolved into a strategic platform for investment, innovation and shared growth.

He noted that recent reforms by the Federal Government have expanded fiscal space across states, improved revenue flows and created new opportunities for private capital to engage directly at sub-national levels.

“These reforms include foreign exchange liberalisation, enhanced domestic revenue mobilisation, strategic investment in agriculture, energy, infrastructure, healthcare, and human capital. The expansion in fiscal space has provided an opportunity for the private sector to go directly to the States. We are very clear that to achieve our objectives as a country, we have to mobilise private money and in multiple ways of work,” he said.

Bagudu added that Nigeria is also scaling grassroots development noting that the National Economic Council chaired by Vice President Kashim Shettima, had reached key agreements with state governments to coordinate reforms, sustain economic momentum, improve security collaboration, eliminate illegal economic activities, expand infrastructure financing through private capital, and strengthen social inclusion initiatives.

He therefore commended the German delegation, adding that the €65 million development support and €300 million export credit line would strengthen Nigeria’s reform efforts, expand access to finance for businesses and accelerate private sector-led growth.