Sterling Bank and French development finance institution, Proparco, have signed a $30 million credit facility to finance renewable energy projects and small businesses operating across Nigeria’s agricultural value chains.
Under the agreement, $24 million, representing 80 per cent of the facility, will support renewable energy financing, while the remaining $6 million will be allocated to agricultural small and medium-sized enterprises (SMEs).
The facility is expected to expand access to clean electricity, reduce dependence on fossil fuels, strengthen local agricultural production, improve food security and create jobs.
The agreement was signed in Lagos by Sterling Bank’s Managing Director and Chief Executive Officer, Abubakar Suleiman, and the Chief Executive Officer of the Agence Française de Développement (AFD), Christophe Lecourtier.
Speaking on the partnership, Suleiman said Nigeria’s electricity challenge required financing models that could accelerate decentralised power generation and provide households and businesses with alternatives to costly generators.
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He noted that limited access to capital remained a major obstacle preventing many Nigerians from switching to cleaner and potentially cheaper energy sources.
On agricultural financing, Suleiman said access to affordable credit remained a major constraint for farmers and businesses across the value chain, adding that the facility would help address the funding gap.
He said the partnership aligned with Sterling Bank’s HEART strategy, which prioritises financing in health, education, agriculture, renewable energy and transportation.
Sterling Bank also disclosed that it was pursuing a target of carbon neutrality by 2050, with ongoing efforts to reduce its environmental footprint through solar installations at its headquarters and nearly half of its branches and automated teller machines.
Its renewable energy initiatives include the Imperium platform, which provides access to renewable energy equipment and services, as well as an electric mobility programme promoting cleaner transportation.
Lecourtier said the agreement would support Africa’s energy transition while addressing climate, economic and social challenges.
He added that working with local financial institutions and private businesses would help expand the impact of development financing, support agricultural SMEs and promote job-creating growth in Nigeria.
