• $13 million loan to expand solar access in Nigeria
• Sterling Bank to on-lend funds for decentralized energy projects
• Households, businesses and small developers targeted

A $13 million loan will help expand access to solar electricity for households and small businesses in Nigeria. The financing, provided by the Universal Green Energy Access Programme (UGEAP) to Sterling Bank, will support decentralized renewable energy projects across the country, according to a statement released on Thursday, March 26.

The funding will enable Nigerian lender Sterling Bank to expand its credit offering to a broader range of projects, including commercial and industrial installations, home solar systems, mini-grids and grid-connected projects. The facility uses a refinancing mechanism under which the bank on-lends funds to decentralized technology developers and end-users. It aims to address the financing gap facing small energy projects in the country.

"UGEAP is pleased to partner with Sterling Bank on this transaction, reflecting a shared commitment to delivering measurable development impact alongside strong financial discipline. As UGEAP’s first transaction under Cygnum Capital’s management, this marks an important milestone for the fund. The financing from UGEAP will strengthen the Bank’s capacity to scale its DRE lending activities, bridging a critical financing gap for smaller developers and projects that are often underserved by traditional funding sources," said Meghana Duggirala, co-lead of the fund.

The deal marks UGEAP’s first transaction with a financial institution and reflects the fund’s strategy, under Cygnum Capital’s management, to leverage local actors to accelerate the deployment of energy solutions. It also aligns with a broader trend in Nigeria, where commercial banks are increasing their involvement in off-grid solar financing.

In February 2025, Sterling Bank announced a partnership with Sun King to provide solar equipment to households and small businesses through installment payments over 48 months. On March 7, Access Bank launched a solar financing program targeting health facilities, with a goal of mobilizing up to 200 million naira.

Abdoullah Diop