Workers at a small rice mill in Jega, Nigeria

Priority area Sustainable economic development Access to loans and to vocational training

Successful poverty reduction requires, among other things, a significant expansion of job and income opportunities for the country's growing population. However, the private sector, which could provide a great many jobs, is still underdeveloped.

German development cooperation therefore focuses on creating a better environment for private sector activities, addressing the following aspects:

  • Improvement of the business and investment climate: establishment of advice centres for micro, small and medium enterprises (MSMEs); efforts to foster dialogue between the government and business; and reforms in the areas of land acquisition/registration, building permits and tax administration
  • Support for microfinance institutions in order to give MSMEs and low-income households access to loans
  • Assistance for Nigeria's banking sector, for instance through the establishment of an agricultural fund in support of rural small and medium-sized enterprises
  • Support for financial system development, for example with regard to regulating microfinance banks and developing consumer protection regulations in the financial sector
  • Training programmes for small entrepreneurs and farmers to build their business skills
  • Support for high-quality, relevant vocational training in the areas of construction, agriculture and industrial mechanics in order to improve the job prospects of young women and men
  • Programmes to teach basic financial literacy in primary and secondary schools; career guidance for young people based on close cooperation with local enterprises