Sterling Bank has joined a $4.1 billion and N435 billion financing initiative involving 13 financial institutions designed to improve access to working capital for indigenous oil and gas contractors. The partnership, formalised through a memorandum of understanding, brings Sterling into the renewed Renaissance Vendor Financing Scheme, which provides structured funding to eligible contractors against confirmed contracts awarded by oil producer Renaissance Africa Energy Company. The scheme addresses a longstanding challenge: local service providers who have secured contracts often lack the funds needed to mobilise equipment, procure materials, retain skilled workers and meet project deadlines.
Dele Faseemo, group executive for Corporate and Investment Banking at Sterling Bank, said the arrangement would support qualified contractors to execute projects, expand operations and increase their role in Nigeria's energy sector. "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. Tony Attah, managing director and chief executive officer of Renaissance Africa Energy Company, confirmed that the 13 participating banks had committed more than $4 billion and N435 billion to support contractors and the company's growth plans.
A key advantage of the scheme is the pricing available to contractors. Attah said the interest rate offered through the financing arrangement is more competitive than what vendors could typically negotiate individually with banks. "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," he said. All financing under the scheme remains subject to credit assessments and approval by the participating financial institutions.
The programme builds on a contractor financing initiative established in 2010 and has since evolved to support local service providers across the oil and gas sector. Its latest expansion comes as Renaissance targets production of one million barrels of oil equivalent per day by 2030. Achieving this target will require significant investment in production assets and the wider network of engineering firms, equipment suppliers, logistics providers and technical service companies. Renaissance operates assets previously held by Shell Petroleum Development Company's joint venture, making its production plans and contractor network significant to Nigeria's efforts to increase oil and gas output.
Sterling Bank said the partnership aligns with its strategy of providing sector-specific financing solutions to businesses in critical segments of the Nigerian economy. For contractors, the scheme reduces reliance on independently negotiated bank facilities by directly linking confirmed contract awards with funding. The arrangement is expected to ease working capital pressures and improve contractors' ability to deliver projects across the oil and gas value chain.