Nigeria Turns to German Technology to Cut Industrial Costs
Nigeria is seeking greater German investment in industrial technology and manufacturing as the Federal Government looks to reduce production costs and strengthen local capacity, particularly in sectors such as cement, mining and construction.
Minister of Budget and Economic Planning Abubakar Atiku Bagudu said the country wants to convert its longstanding relationship with Germany into practical investment and technology partnerships that can improve productivity and expand domestic production. He spoke at the Germany-Nigeria Industrial Technology Conference in Abuja.
The government is also targeting German machinery and engineering expertise to support industrialisation, with opportunities identified in materials handling, cement and minerals processing, digital technology and environmental solutions. A delegation of 14 German companies from these sectors visited Lagos and Abuja to explore potential partnerships with Nigerian businesses.
Financing is another focus of the proposed cooperation. The government highlighted a €300 million German export credit guarantee framework as part of the available financing options for projects, alongside development finance, commercial lending and other guarantees. Officials said investment-ready projects would be essential to turning the framework into actual industrial activity.
The renewed push comes as Nigeria seeks to expand manufacturing and domestic value addition while pursuing its ambition of becoming a $1 trillion economy by 2030. If the planned partnerships translate into new equipment, technology transfer and local production, they could help businesses improve efficiency while reducing dependence on imported industrial inputs.
The conference, organised by the German Engineering Federation in partnership with the German Embassy in Nigeria, brought together government officials, businesses, financial institutions and technology companies. The discussions focused on moving beyond diplomatic ties towards projects capable of expanding Nigeria’s productive capacity and creating industrial jobs.
