Partnership pools $4.1bn and ₦435bn from 13 financial institutions to boost indigenous capacity. Sterling Bank Limited has partnered with Renaissance Africa Energy Company Limited to expand access to financing for indigenous oil and gas contractors, as the energy company seeks to strengthen local capacity and increase production.
The partnership, formalised through a memorandum of understanding (MoU), makes Sterling Bank part of the expanded Renaissance Vendor Financing Scheme (RVFS), a structured funding programme designed to address persistent financing constraints facing Nigerian service providers executing oil and gas contracts.
The scheme brings together 13 financial institutions with combined financing commitments of $4.1 billion and ₦435 billion to support eligible contractors handling projects for Renaissance, operator of the assets previously managed under the Shell Petroleum Development Company joint venture.
Speaking on the partnership, Dele Faseemo, Group Executive, Corporate and Investment Banking at Sterling Bank, said the arrangement would help connect financial resources with productive businesses in one of Nigeria’s most strategic industries.
“At Sterling Bank, we believe financing should enable capable businesses to deliver, grow and compete. Our participation in the Renaissance Vendor Financing Scheme reflects that conviction. 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.
For indigenous contractors, winning a major contract often marks only the beginning of the challenge. Mobilising equipment, purchasing materials, retaining skilled workers and meeting project deadlines require sufficient working capital.
Limited access to affordable financing can prevent otherwise qualified businesses from executing contracts effectively, expanding their operations and participating more fully in the energy value chain.
Under the RVFS, participating financial institutions will provide structured financing to eligible contractors against confirmed contracts awarded by Renaissance, subject to credit assessments and approval requirements.
The arrangement is expected to ease working-capital pressures, improve project delivery and strengthen the financial capacity of local service providers.
Tony Attah, Managing Director and Chief Executive Officer of Renaissance Africa Energy Company Limited, said the scheme would support the company’s growth plans by providing contractors with access to substantial funding.
“What we’ve been able to achieve as Renaissance is to go into that partnership with these incredible 13 banks who have come up to support this vendor scheme at over $4 billion and over ₦435 billion funds available for the vendors to be able to support us in our growth agenda,” Attah said.
He added that the scheme offered contractors more competitive borrowing terms than they might secure by approaching banks independently.
“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.
The Renaissance Vendor Financing Scheme builds on a contractor financing programme established in 2010, which has evolved to support local service providers undertaking projects across the oil and gas value chain.
Its latest expansion comes as Renaissance pursues an ambitious growth strategy, including a target of producing one million barrels of oil equivalent per day by 2030.
Achieving that target will require sustained investment in upstream production assets and the wider network of engineering firms, equipment suppliers, logistics providers, technical specialists and other indigenous businesses that support operations.
Sterling Bank said its participation reflected its commitment to financing Nigerian enterprises through tailored financial solutions, strategic partnerships and sector-specific expertise.
The collaboration is expected to strengthen local participation in the energy industry, expand contractors’ capacity to execute major projects and support Nigeria’s broader goals of improving energy security and long-term industrial competitiveness.