Sterling Bank has signed a $30 million senior credit facility with Proparco, the private sector financing arm of the Agence Française de Développement (AFD) Group, to increase renewable energy investment and improve financing access for small and medium-sized enterprises (SMEs) in Nigeria’s agricultural value chain.

The agreement is expected to support Nigeria’s energy transition, expand financing opportunities for agricultural businesses and stimulate economic activities in line with the country’s development priorities.

The deal was signed at Sterling Bank’s head office in Lagos by its Managing Director and Chief Executive Officer, Abubakar Suleiman, and Christophe Lecourtier, CEO of the French Development Agency (AFD).

Under the financing arrangement, 80 per cent of the facility will go towards renewable energy projects, while the remaining 20 per cent will be directed towards SMEs operating in the agricultural sector.

The partnership aligns with Sterling Bank’s HEART strategy, which prioritises Health, Education, Agriculture, Renewable Energy and Transportation. It also establishes the foundation for a long-term relationship between the two institutions.

With more than one-third of Nigeria’s population still without electricity, the initiative will prioritise decentralised renewable energy solutions, particularly solar power, to improve electricity access for households and businesses.

The investment is also expected to reduce reliance on fossil fuels, provide more reliable electricity, stimulate local economic activities and strengthen communities’ resilience to climate-related challenges.

Speaking on the agreement, Suleiman said the facility would help address financial barriers preventing households, businesses and farmers from adopting cleaner energy alternatives and accessing affordable credit.

“We have long treated Nigeria’s power problem as a generation problem waiting for the grid to solve it. Increasingly, it is a financing problem with a distributed solution,” he said.

He explained that many households and businesses already spend substantial amounts on generator-powered electricity but lack the financial resources to switch to cleaner alternatives that could become more affordable over time.

Suleiman further identified limited access to credit as a major challenge facing agricultural enterprises, noting that Sterling Bank’s HEART strategy directs financing towards sectors where capital can generate meaningful economic outcomes.

Sterling Bank is also working towards achieving carbon neutrality by 2050 as part of its environmental sustainability commitments. Its efforts include installing solar energy systems at its headquarters and nearly half of its branches and ATMs.

Other initiatives include Imperium, the bank’s platform for accessing renewable energy products and services, as well as electric mobility programmes designed to encourage sustainable transportation and create employment opportunities, particularly for women.

Beyond renewable energy investment, the Proparco facility is expected to improve financing opportunities for SMEs across agricultural value chains, which play important roles in employment generation, food security and Nigeria’s economic resilience.

The funding is also expected to encourage local production, support business expansion and strengthen agricultural value chains. It could further create opportunities for collaboration between Nigerian and French companies.

Lecourtier said the agreement demonstrates the AFD Group’s commitment to advancing sustainable development through private sector financing and partnerships with local institutions.

He added that the facility would expand access to clean energy, strengthen SMEs and agricultural value chains, and support job creation while advancing development priorities shared by Nigeria, France and Europe.

Proparco’s investment also complements Sterling Bank’s efforts to promote women’s economic inclusion through programmes that help women entrepreneurs develop their skills and grow their businesses.

SOURCE: MSME Africa Online