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…Says guarantees key to unlocking investments, driving green growth
From Charity Nwakaudu, Abuja
The Minister of Solid Minerals Development, Dr. Dele Alake, has called for stronger global collaboration to address development financing gaps confronting Nigeria and other emerging economies, stressing that sustainable growth cannot be achieved without innovative funding mechanisms and increased private sector participation.
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.
The minister said partnerships among governments, development institutions, private investors and international organisations are critical to unlocking investments in green development, supporting small and medium-scale enterprises (SMEs) and accelerating economic growth.
He noted that sectors such as renewable energy, mining, agriculture, infrastructure and climate-resilient industries require long-term investments backed by innovative financing structures that reduce risks for investors.
According to him, guarantee instruments have become indispensable tools for de-risking investments, mobilising private capital and supporting economic transformation and climate adaptation efforts.
“We are deliberately pursuing policies that encourage climate action, global progress, renegotiation and greater participation in higher-value segments of global supply chains,” Alake said.
He added that despite the abundance of viable projects, many struggle to attract funding because of market uncertainties, making guarantee instruments and risk-sharing mechanisms crucial to attracting capital.
The minister also underscored the importance of access to finance for Micro, Small and Medium Enterprises (MSMEs), describing them as major drivers of economic growth, job creation and innovation.
He said the roundtable offered policymakers, financial institutions, development partners and private sector players an opportunity to identify practical solutions to Nigeria’s financing challenges.
Chairman of the Green Guarantee Group, Lars-Hendrik Roeller, said guarantees have proven globally to be effective instruments for reducing investment risks, boosting investor confidence and unlocking private capital for climate and development projects.
Roeller stressed the need to move climate finance discussions beyond policy debates to concrete implementation through national initiatives and stronger stakeholder collaboration.
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He disclosed that the GGG is working towards establishing a stronger global guarantee architecture 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 GGG places it in a strategic position to champion practical financing solutions that can accelerate green industrialisation across the continent.
Permanent Secretary of the Ministry of Solid Minerals Development and Co-Chair of the GGG, Engr. Faruk Yabo, said the workshop was designed to deepen understanding of guarantee mechanisms, assess Nigeria’s existing financing architecture and test practical applications through priority investment projects.
Yabo explained that institutions such as InfraCredit, NIRSAL, the Nigeria Credit Guarantee Company, the Nigeria Sovereign Investment Authority and the Infrastructure Bank already provide critical elements of the guarantee ecosystem needed to support development financing.
He described guarantees as a bridge connecting institutional investors seeking secure returns with viable climate and development projects that often appear too risky to external financiers.
“Nigeria’s position as Co-Chair of the GGG is not symbolic. It reflects recognition of the scale of investment needs in power, solid minerals, agriculture, infrastructure and the broader green economy,” he said.
German Ambassador to Nigeria and ECOWAS, Annett Günther, highlighted the importance of African-European partnerships in tackling climate adaptation and development challenges.
She noted that guarantees have demonstrated the capacity to mobilise up to six times more private financing than traditional development instruments and reaffirmed Germany’s commitment to strengthening climate finance cooperation with Nigeria.
Minister of Budget and Economic Planning, Senator Abubakar Bagudu, described the roundtable as significant, noting that it could help accelerate the achievement of the Sustainable Development Goals (SDGs).
Also speaking, UNDP Nigeria Resident Representative, Elsie Attafuah, described guarantees as development accelerators capable of unlocking investments needed for Nigeria’s energy transition, industrial transformation 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.
Representing the President of the Africa Finance Corporation (AFC), Dr. Musa Salwara said Africa’s challenge is not a lack of opportunities but the inability to make projects bankable.
He stressed that Nigeria’s progress would depend on stronger project pipelines, enhanced institutional capacity and deeper regional and international partnerships.
