Sterling Bank has joined a $4.1 billion and N435 billion financing scheme involving 13 financial institutions to improve access to
Sterling Bank has joined a $4.1 billion and N435 billion financing scheme involving 13 financial institutions to improve access to working capital for indigenous oil and gas contractors executing projects for Renaissance Africa Energy Company.
The partnership, formalised through a memorandum of understanding, brings the bank into the renewed Renaissance Vendor Financing Scheme (RVFS), which provides structured financing to eligible contractors against confirmed contracts awarded by the oil producer.
The scheme seeks to address funding constraints that prevent local service providers from mobilising equipment, procuring materials, retaining skilled workers and meeting project deadlines despite securing contracts.
Dele Faseemo, group executive, Corporate and Investment Banking at Sterling Bank, said the partnership would help qualified contractors execute projects, expand operations and increase their participation in Nigeria’s energy value chain.
“By providing structured funding to qualified contractors, we are supporting the businesses that keep the energy value chain moving, strengthening Nigerian content participation and contributing to the broader objective of increasing the country’s productive capacity,” Faseemo said in a note.
Similarly, Tony Attah, managing director and chief executive officer of Renaissance Africa Energy Company, said the 13 participating banks had committed more than $4 billion and N435 billion to support contractors and the company’s growth plans.
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He said the financing arrangement would offer contractors more competitive interest rates than they might obtain by approaching banks individually.
“The interest rate that the banks are offering to the contractors is very competitive, and it is certainly better than the vendors going out to the respective banks on their own,” Attah said.
Under the scheme, financing will be subject to credit assessments and approval by participating financial institutions. The arrangement is expected to ease working capital pressures on contractors and improve their ability to deliver projects across the oil and gas value chain.
The programme builds on a contractor financing initiative established in 2010 and has since evolved to support local service providers undertaking projects in the sector.
Its latest expansion comes as Renaissance targets production of one million barrels of oil equivalent per day by 2030. Achieving the target will require investment in production assets and the wider network of engineering firms, equipment suppliers, logistics providers and technical service companies supporting operations.
The energy firm operates assets previously held by the Shell Petroleum Development Company joint venture, making its production plans and contractor network significant to Nigeria’s efforts to increase oil and gas output.
The financing scheme is designed to link confirmed contract awards with funding, reducing the need for vendors to rely solely on independently negotiated bank facilities.
Sterling Bank said the partnership aligns with its strategy of providing sector-specific financing solutions to businesses operating in critical segments of the Nigerian economy.
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Feyishola Jaiyesimi is a writer and storyteller. She currently writes for the energy desk at BusinessDay with a focus on renewable energy and environmental issues. She began her journalism career as an agricultural reporter and now covers the energy sector, including oil, gas, electricity, environment, and renewables. She has been selected for professional training by the US Consulate, Lagos. She is a 2025 Dataphyte Biodiversity Reporting Fellow. Feyishola holds a bachelor’s degree in Zoology and Environmental Biology from Ekiti State University.