Sterling Bank has strengthened its drive to promote clean energy and agricultural development in Nigeria following a $30 million credit agreement with French development finance institution, Proparco, to support renewable energy projects and small and medium-sized enterprises (SMEs) across the agricultural value chain.
The facility, which is expected to improve access to reliable electricity and strengthen local agricultural production, will see $24 million, representing 80 per cent of the total financing, channelled into renewable energy projects, while the remaining $6 million will be dedicated to supporting agricultural SMEs.
The agreement was signed in Lagos by the Managing Director and Chief Executive Officer of Sterling Bank, Abubakar Suleiman, and the Chief Executive Officer of the Agence Française de Développement (AFD), Christophe Lecourtier.
The partnership comes against the backdrop of Nigeria's persistent electricity challenges, with more than one-third of the population still without access to electricity. Consequently, many households and businesses continue to depend on petrol and diesel generators to meet their energy needs, often at significant financial and environmental costs.
Through the facility, the two institutions intend to expand financing for decentralised renewable energy solutions, particularly solar power, enabling households and businesses to access cleaner and more dependable electricity while gradually reducing their reliance on fossil fuels.
Beyond the energy sector, the financing is also expected to address longstanding credit constraints confronting SMEs operating within Nigeria's agricultural value chains. The intervention is expected to strengthen local production capacity, improve food security, stimulate business activities and create employment opportunities.
Speaking on the significance of the partnership, Suleiman said Nigeria's electricity challenge required a shift in financing priorities, particularly towards decentralised power solutions that could provide alternatives to the national grid.
“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. Millions of households and businesses already pay for power through generators. What they lack is the capital to switch to something cleaner and, over time, cheaper. That is the gap this facility helps us close,” he said.
On the agricultural component of the agreement, the Sterling Bank chief executive noted that limited access to affordable credit remained a major obstacle to the growth of farmers and businesses across the sector.
“Agriculture has the same problem because demand is rarely what holds farmers back; the cost and availability of credit along the value chain is. Sterling’s HEART strategy rests on a simple view: a bank does its best work where finance changes outcomes. Our partnership with Proparco extends that work,” he added.
The bank explained that the financing aligns with its HEART strategy, which prioritises investments in health, education, agriculture, renewable energy and transportation as key drivers of sustainable economic development.
Sterling Bank has also reiterated its commitment to achieving carbon neutrality by 2050, alongside efforts to reduce its environmental footprint through investments in cleaner energy infrastructure.
As part of its sustainability initiatives, the bank has installed solar power systems at its headquarters and nearly half of its branches and automated teller machines (ATMs).
Its renewable energy interventions also include the Imperium platform, which provides access to renewable energy equipment and services, as well as an electric mobility initiative designed to encourage cleaner transportation and create employment opportunities, particularly for women.
For Proparco, the partnership represents part of a broader commitment to advancing Africa's energy transition while addressing interconnected climate, economic and social development challenges.
Lecourtier said sustainable energy development remained essential to driving long-term transformation across the continent, stressing the importance of collaboration between development finance institutions, local banks and private-sector operators.
“In Nigeria, as throughout Africa, the energy transition must be a driver for sustainable transformation, at the intersection of climate, economic, and social challenges,” he said.
He explained that the facility would contribute to expanding access to clean and reliable electricity, strengthening SMEs and supporting local agricultural value chains, while promoting inclusive economic growth and job creation.
“By working with local banks and the private sector, the AFD Group multiplies the impact of its financing and delivers tangible benefits to local communities, serving the shared interests and objectives of France and Nigeria,” Lecourtier added.
The agreement also underscores Sterling Bank's commitment to promoting women's economic participation through initiatives aimed at equipping women entrepreneurs with the skills, resources and financial support needed to expand their businesses.
With the latest financing arrangement, both institutions are seeking to strengthen the role of private-sector financing in addressing Nigeria's energy deficit, improving agricultural productivity and creating more sustainable economic opportunities.