Sterling Bank and Agence française de développement (AFD) Group, through its private sector subsidiary, Proparco, have announced the signing of a USD 30 million senior credit facility targeted at accelerating renewable energy adoption and driving scale for small and medium-sized enterprises (SMEs) across Nigeria’s agricultural value chain. The funds will support the climate transition and economic development, contribute to Nigeria’s development priorities, and create new opportunities for cooperation.

Abubakar Suleiman, Managing Director/CEO of Sterling Bank, and Christophe Lecourtier, CEO of the French development Agency (AFD), signed the agreement at the Bank’s head office in Lagos.

This financing marks the first step towards a long-term partnership between the two institutions and feeds into Sterling Bank’s ambitious “HEART” strategy, which prioritises financing for the Health, Education, Agriculture, Renewable Energy, and Transportation sectors. The credit will enable the Nigerian bank to finance renewable energy projects, which will account for 80% of the funds made available, while the remaining 20% will be allocated to SMEs in the agricultural sector.

In a country where more than one third of the population still lacks access to electricity, developing decentralised energy solutions is a key driver of economic and social development. The partnership between Proparco and Sterling Bank aims, in particular, to support the deployment of off-grid renewable energy solutions, especially solar power, to meet the needs of households and businesses. By improving access to reliable and sustainable electricity, this initiative will help reduce dependence on fossil fuels, stimulate local economic activity, and strengthen communities’ resilience to climate-related challenges.

Sterling Bank has also set a target of achieving carbon neutrality by 2050 and is taking concrete steps to reduce its environmental footprint, notably by installing solar power systems at its headquarters and at nearly half of its branches and ATMs. This commitment is also reflected in the development of innovative solutions, including its Imperium platform, which facilitates access to renewable energy equipment and services, and its mobility initiative, which promotes electric mobility in Nigeria while creating new career opportunities in the sector, particularly for women.

Commenting on the strategic importance of the financing, Abubakar Suleiman, Managing Director/CEO of Sterling Bank, stated:

“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. 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.”

Beyond its climate objectives, this partnership aims to improve access to finance for SMEs operating along agricultural value chains, a sector that plays a vital role in employment, food security, and Nigeria’s economic resilience. It will help strengthen local production capacity, create economic opportunities, and build more resilient agricultural value chains.

Christophe Lecourtier, CEO of the French Development Agency (AFD), said:

“In Nigeria, as throughout Africa, the energy transition must be a driver for sustainable transformation, at the intersection of climate, economic, and social challenges.

Through this first partnership with Sterling Bank, the AFD Group, through its subsidiary Proparco, is helping to align our partners’ development needs with the strategic interests shared by Africa, France and Europe. This financing will increase access to clean and reliable energy, support SMEs and local agricultural value chains, and foster job-creating growth. This partnership will also promote joint projects between Nigerian and French companies.

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.”

Proparco’s commitment is also supported by Sterling Bank’s efforts to promote women’s economic inclusion through initiatives that help women entrepreneurs develop their skills and grow their businesses.