Sterling Bank has secured a $30 million credit facility from Proparco, the private-sector financing arm of the French Development Agency Group, to support renewable energy projects and agricultural small and medium-sized enterprises (SMEs) in Nigeria.
Under the agreement, $24 million will be allocated to decentralised renewable energy financing, while the remaining $6 million will support businesses operating across agricultural value chains.
The financing arrangement, signed in Lagos, is expected to improve access to capital for businesses seeking to expand electricity supply, strengthen agricultural production and improve operational efficiency.
The renewable energy component accounts for 80% of the total facility and will focus on decentralised electricity solutions, including off-grid solar installations.
The investment could help businesses reduce their dependence on expensive alternative power sources, particularly in areas where access to reliable grid electricity remains limited.
For agricultural SMEs, the $6 million allocation will provide additional financing opportunities for businesses involved in farming, processing, storage and other activities across the agricultural value chain.
Access to affordable credit remains a major challenge for smaller agricultural businesses, many of which require substantial working capital to purchase equipment, expand production and manage seasonal operations.
The partnership also strengthens Sterling Bank’s capacity to finance projects in two sectors considered important to Nigeria’s economic diversification.
Renewable energy investment has become increasingly relevant as manufacturers, commercial enterprises and households seek more reliable electricity solutions amid persistent power supply challenges.
Similarly, agricultural financing remains essential to improving domestic food production, reducing post-harvest losses and strengthening supply chains.
Proparco’s involvement provides an additional source of international development finance for private-sector activities in Nigeria.
The institution supports businesses and financial intermediaries in developing economies, with an emphasis on sustainable economic growth, employment and environmental objectives.
For Sterling Bank, the facility could expand its lending activities in renewable energy and agriculture while providing businesses with access to funding dedicated to these sectors.
However, the agreement does not establish that the entire $30 million has already been disbursed to borrowers.
The eventual impact will depend on loan deployment, financing conditions, the number of businesses supported and the performance of the projects funded.
The transaction comes as Nigerian businesses continue to seek alternative financing arrangements to address high operating costs and infrastructure constraints.
Successful deployment of the facility could support electricity access, agricultural productivity and private-sector investment while creating additional lending opportunities for Sterling Bank.