Sterling Bank, Proparco sign $30 million deal to expand renewable energy and agricultural SMEs 

Sterling Bank has secured a $30 million credit facility from Proparco, the private-sector financing arm of France’s Agence Française de Développement Group, to expand renewable energy financing and improve access to capital for agricultural businesses in Nigeria. The agreement strengthens efforts to channel development finance into two sectors critical to the country’s economic growth. 

The senior credit facility allocates 80% of the funding to renewable energy projects, with the remaining 20% earmarked for small and medium-sized enterprises across the agricultural value chain. The financing is expected to support clean energy adoption, strengthen agricultural businesses and create opportunities for local companies. 

The agreement was signed in Lagos by Sterling Bank Managing Director and CEO Abubakar Suleiman and AFD Group CEO Christophe Lecourtier at the bank’s headquarters. It also marks the beginning of a longer-term partnership between the two institutions.

Solar power gets priority 

The renewable energy allocation comes as Nigeria faces persistent electricity access challenges, with more than one-third of its population still without access to electricity. The partnership will target decentralized renewable energy solutions, particularly solar power, for households and businesses seeking alternatives to unreliable grid supply and expensive generator-powered electricity. 

Suleiman said the financing would address a major obstacle preventing households, businesses and farmers from adopting cleaner energy and accessing affordable credit. He argued that Nigeria’s electricity challenge increasingly requires financing solutions that allow consumers to generate power independently rather than rely entirely on expansion of the national grid. 

He said many households and businesses already spend substantial amounts on generator-powered electricity but lack the upfront capital to switch to cleaner alternatives that could reduce their energy costs over time. The facility is intended to help bridge that financing gap.

Agriculture secures 20% allocation 

The remaining $6 million will support agricultural SMEs, a segment central to employment, food production and rural economic activity. Access to affordable financing remains a constraint for businesses operating across agricultural value chains, limiting their ability to expand production, invest in equipment and strengthen distribution networks. 

Sterling Bank said the financing would support local production, improve business capacity and strengthen agricultural supply chains. The partnership is also expected to create opportunities for Nigerian and French businesses to collaborate across renewable energy and agriculture, potentially widening commercial links between the two countries. 

The facility aligns with Sterling Bank’s HEART strategy, which prioritizes health, education, agriculture, renewable energy and transportation. The framework directs the lender’s financing toward sectors where investment can support economic development and expand access to essential services.

Sterling expands green financing 

Sterling Bank is targeting carbon neutrality by 2050 and has invested in reducing its operational emissions through solar installations at its headquarters and nearly half of its branches and automated teller machines. The lender has also developed initiatives intended to encourage wider adoption of sustainable energy and transportation. 

Its Imperium platform provides access to renewable energy products and services, while electric mobility programmes seek to promote cleaner transportation and create employment opportunities, particularly for women. The new facility extends those efforts by making additional institutional financing available to businesses and consumers seeking energy alternatives. 

Lecourtier said the agreement reflected the AFD Group’s commitment to sustainable development through private-sector financing and partnerships with local institutions. He said the investment would improve access to clean energy, support agricultural SMEs, strengthen value chains and encourage job creation. 

The partnership also complements Sterling Bank’s efforts to expand women’s economic participation through programmes designed to help female entrepreneurs develop business skills and grow their enterprises.

Development finance targets Nigeria 

Founded in 1960, Sterling Bank evolved from an investment banking institution into a full-service commercial lender following Nigeria’s 2006 banking consolidation, when it merged with four other banks. It operates nationally under a commercial banking licence issued by the Central Bank of Nigeria. 

Proparco, established in 1977, provides financing and advisory services to private-sector businesses in emerging and developing economies. As part of the AFD Group, it invests in sectors including infrastructure, renewable energy, financial services, health care and education, with operations spanning more than 115 countries across Africa, Asia, Latin America, Eurasia and the Middle East.