Sterling Bank Secures $30 Million Funding to Expand Solar Energy Access and Support Nigerian SMEs

Sterling Bank has entered into a $30 million financing agreement with Proparco, the private-sector financing arm of the French Development Agency Group, to expand renewable energy investments and improve access to credit for small and medium-sized enterprises in Nigeria.

The partnership represents an important development in the growing relationship between financial institutions and development finance organisations seeking to address Nigeria’s energy and business financing challenges.

The agreement was signed at Sterling Bank’s headquarters in Lagos by Managing Director and Chief Executive Officer Abubakar Suleiman and French Development Agency Chief Executive Officer Christophe Lecourtier.

How the $30 Million Facility Will Be Used

Under the agreement, 80% of the facility, equivalent to $24 million, will be directed towards renewable energy projects.

The remaining $6 million will support small and medium-sized businesses operating within Nigeria’s agricultural value chains.

The renewable energy component will focus particularly on decentralised electricity solutions, including off-grid solar systems designed to improve power availability for households and businesses.

The agricultural financing component is expected to support enterprises facing difficulties accessing the capital required to expand production and strengthen their operations.

A Boost for Nigeria’s Solar Energy Industry

Nigeria’s electricity challenges have created growing demand for alternative power solutions.

Many households and businesses continue to depend on generators to maintain daily operations, often facing significant fuel and maintenance costs.

Access to appropriate financing could make solar installations more affordable for businesses that cannot cover the full upfront cost of renewable energy equipment.

This could create opportunities for solar developers, equipment distributors, installation companies and maintenance providers.

Supporting Agricultural Businesses

Beyond renewable energy, the funding arrangement is designed to strengthen businesses involved in agricultural production and related services.

Improved financing may help eligible enterprises acquire equipment, expand capacity and increase productivity.

However, the terms and availability of financing for individual businesses will depend on Sterling Bank’s lending procedures and eligibility requirements.

The Bigger Picture

The partnership highlights the expanding role of development finance in supporting Nigeria’s economic transformation.

By combining renewable energy financing with support for agricultural enterprises, Sterling Bank and Proparco aim to address two important barriers to business growth: unreliable electricity and limited access to capital.

The long-term impact will depend on how effectively the funds are deployed and whether they translate into stronger businesses, improved energy access and sustainable employment opportunities.