The French Development Agency (AFD) Group has signed two loan agreements totalling $60 million with the Bank of Industry (BOI) and Sterling Bank to expand financing for Nigerian businesses operating in the creative, agricultural and renewable energy sectors.
The agreements comprise a $30 million loan to BOI for businesses in Nigeria’s cultural and creative industries and another $30 million credit facility provided through Proparco, AFD’s private-sector financing subsidiary, to Sterling Bank. The latter will support renewable energy projects and small and medium-sized enterprises (SMEs) across agricultural value chains.
The agreements were signed during a visit to Nigeria by AFD Group Chief Executive Officer, Christophe Lecourtier, from October 26 to 28, 2026. His engagements in Lagos and Abuja included meetings with government officials, development finance institutions and private-sector operators to explore investment opportunities and strengthen economic cooperation between Nigeria and France.
The $30 million facility to BOI is expected to improve access to financing for companies operating in Nigeria’s cultural and creative industries, including film, music, fashion and other creative businesses.
According to AFD, the creative sector contributes nearly 2 per cent of Nigeria’s Gross Domestic Product (GDP) and supports more than four million jobs. The funding is expected to help businesses overcome financing constraints, expand production capacity and access new markets.
The second agreement, facilitated through Proparco, will provide Sterling Bank with $30 million to finance renewable energy projects and agricultural SMEs. The facility is structured to allocate 80 per cent, equivalent to $24 million, to renewable energy projects, while the remaining $6 million will support businesses operating across agricultural value chains.
The renewable energy component will particularly target decentralised electricity solutions, including off-grid solar systems, to improve access to reliable power for households and businesses. The agricultural financing is expected to strengthen local production and improve access to credit for businesses across the sector.
Sterling Bank Managing Director and Chief Executive Officer, Abubakar Suleiman, said the partnership would help address financing constraints in Nigeria’s energy and agricultural sectors. He noted that many households and businesses already spend significant amounts on generator-powered electricity but lack the capital to transition to cleaner alternatives.
The facility also aligns with the bank’s HEART strategy, which prioritises financing for healthcare, education, agriculture, renewable energy and transportation.
AFD Expands Investment in Nigeria
Beyond the loan agreements, Lecourtier held discussions with the Managing Director and Chief Executive Officer of the Nigeria Sovereign Investment Authority (NSIA), Aminu Umar-Sadiq, on potential investments to improve energy efficiency in the construction sector.
He also met with the Minister of Finance, Taiwo Oyedele, to discuss possible investments in healthcare, social protection, vocational training, sustainable energy infrastructure and urban mobility. Discussions with the Minister of Health, Muhammad Ali Pate, focused on support for universal health coverage, pharmaceutical value chains and health insurance.
AFD further highlighted its involvement in vocational training and digital education through the African Centre of Excellence on Technology Enhanced Learning (ACETEL), located at the National Open University of Nigeria and co-financed by AFD and the World Bank.
The agency disclosed that it currently has more than 50 projects underway in Nigeria, with cumulative financing of approximately €2.5 billion, making it a significant development partner in the country.
The $60 million agreements represent another effort to channel development finance through local financial institutions to businesses that require capital for expansion, infrastructure and job creation. Their impact will depend on effective disbursement and the ability of beneficiary businesses to deploy the funding productively. The report reflects the financing breakdown confirmed by AFD and Proparco: $30 million each for BOI and Sterling Bank, with Sterling’s facility split between renewable energy and agricultural SMEs.
