FG, States Forge New Pact On Security, Infrastructure Financing

The federal and state overnments have reached fresh agreements aimed at strengthening security coordination, expanding infrastructure financing and sustaining economic reforms as Nigeria deepens bilateral cooperation with Germany.

The development emerged on Wednesday as Nigeria and Germany concluded negotiations on a renewed framework for bilateral cooperation ahead of the formal signing of the agreement in Abuja on Thursday.

The new framework, negotiated by senior officials from multiple ministries and agencies on both sides, is expected to drive collaboration across key sectors including agriculture, energy, healthcare, governance, skills development and private-sector growth.

Speaking at the opening of the negotiations, Minister of Budget and Economic Planning, Abubakar Bagudu, said Nigeria’s relationship with Germany was entering a new phase focused on economic transformation, sustainable infrastructure, energy transition and long-term resilience.

Bagudu disclosed that ongoing fiscal reforms and increased allocations to subnational governments had significantly improved the investment capacity and creditworthiness of states across the federation.

According to him, the federal government, through the National Economic Council chaired by Vice President Kashim Shettima, had reached important understandings with state governments to coordinate reforms, strengthen security cooperation and eliminate illegal economic activities.

He added that the agreements also focused on mobilising private capital for infrastructure financing and expanding social inclusion programmes. “The global development landscape is becoming increasingly complex, shaped by economic pressures, geopolitical uncertainties, climate-related challenges and shrinking development finance. These realities make strong, trusted partnerships even more important,” Bagudu stated.

The minister described Germany as one of Nigeria’s most enduring development partners, noting that over five decades of cooperation had delivered significant support in agriculture, healthcare, renewable energy, vocational education and enterprise development.

He said both countries were now repositioning the partnership to respond to emerging global economic realities through increased emphasis on innovation, investment, competitiveness and enterprise development.

Bagudu also referenced the Nigeria-Germany Binational Commission held in Berlin in November 2025, describing it as a major turning point in bilateral relations that strengthened cooperation in foreign policy, trade, migration, energy and security.

He praised the recent Nigeria-Germany Business Forum held in Lagos, which brought together leading business executives from both countries to explore new investment opportunities and commercial partnerships.

The minister said the administration of President Bola Ahmed Tinubu was implementing broad structural reforms under the Renewed Hope Agenda to reposition the economy for long-term stability and sustainable growth.

According to him, reforms such as foreign exchange liberalisation, enhanced domestic revenue mobilisation, infrastructure investment and fiscal decentralisation were already improving the financial strength of
state governments.

Bagudu also reaffirmed Nigeria’s commitment to pursuing an inclusive energy transition through expanded electricity access, decentralised energy systems and renewable energy investments.

He cited ongoing collaboration with Germany under initiatives including the Nigeria Energy Support Programme and the Energy Transition Challenge Fund implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit and KfW.

In her remarks, Germany’s Ambassador to Nigeria, Annett Günther, described Nigeria as a strategic African partner whose role within Economic Community of West African States and the African Union remained critical to regional peace, economic integration and democratic stability.

Günther, who was accompanied by Deputy Director-General of Germany’s Federal Ministry for Economic Cooperation and Development, Philip Knill, said recent engagements in Lagos and Abeokuta demonstrated the growing strength of Nigeria-Germany cooperation.

She specifically highlighted the Siemens AG Presidential Power Initiative and the Siemens Energy Education Development Programme as key examples of expanding collaboration in energy and workforce development. “Nigeria is a giant in Africa, just as Germany plays a central role in Europe. Together, we can drive meaningful progress,” the ambassador said.

She said Germany’s future cooperation priorities would focus on poverty reduction, food security, peace and security, climate-friendly economic cooperation and the protection of global public goods including health and biodiversity.

Günther also praised Nigeria’s ongoing macroeconomic reforms, describing them as difficult but necessary measures capable of laying the foundation for stronger growth and increased investment inflows.

She disclosed that major German firms including Siemens and SAP were exploring expanded investments in Nigeria in areas such as digital transformation, cloud infrastructure, agritech and workforce development.

Earlier, Permanent Secretary of the Federal Ministry of Budget and Economic Planning, Deborah Odoh, described the negotiations as a major milestone in Nigeria-Germany relations.

She said the discussions were expected to produce a comprehensive Summary of Records outlining new areas of cooperation, implementation frameworks and strategic priorities for future engagement.

According to the press release, representatives from several ministries and agencies, including the Ministries of Agriculture, Education, Health, Labour, Power and Industry, as well as National Information Technology Development Agency, Small and Medium Enterprises Development Agency of Nigeria and Development Bank of Nigeria, participated in the negotiations alongside German development cooperation agencies.