Access Bank PLC (Access Bank), Nigeria’s largest commercial bank, has secured a $75 million facility from the Japan International Cooperation Agency (JICA) to support climate change measures in Nigeria.
The facility which agreement was signed by the two parties on Monday with Citi as the sole coordinator and agent, is JICA’s first private sector investment finance in the banking sector in the Sub-Saharan African region.
The proceeds of the facility which underscores a commitment of Access Bank, JICA and Citi to support climate change measures in Nigeria, are expected to be used to finance a wide range of sub-projects such as renewable-energy projects, energy-saving projects and agriculture-related projects that contribute to climate change measures.
Roosevelt Ogbonna, Managing Director of Access Bank PLC, who commented on the significance of this partnership, stated that Access Bank recognise the urgent need for sustainable solutions to combat climate change and the landmark agreement with JICA reaffirms its commitment to leveraging financial resources for impactful initiatives that promote environmental resilience and contribute to Nigeria’s climate action agenda.
“By investing in renewable energy, energy-saving, and agriculture-related projects, we aim to create a positive ripple effect, not only mitigating the effects of climate change but also fostering economic growth and improving livelihoods within our communities. Indeed, this partnership represents a shared commitment to a greener, more sustainable future for Nigeria and beyond.”
Jin Wakabayashi, Deputy Director General, Private Sector Partnership and Finance Department at JICA said the project significantly marks a new milestone in the long history of JICA’s cooperation with Nigeria and has a very special meaning.
“In addition, we are delighted to have an opportunity to work with such a reputable and quality partner, Access Bank, which has a sophisticated business platform and an established track record of climate finance. Under the partnership with Access Bank, JICA’s Facility is expected to be used for projects which contribute to climate change measures in Nigeria, and we expect that this collaboration will be further deepened in the years to come.
Richard Hodder, Global Head of Export Agency Finance (EAF) at Citi commented on the impact of this international partnership said Citi is committed to bringing solutions which facilitate investment linked to the energy transition, to energy security and the key drivers of economic growth.
“Citi is proud to partner as the sole coordinator and agent in facilitating JICA’s first transaction in Sub-Saharan Africa under the Private Sector Investment and Finance scheme. Following on from the Citi-arranged DFC (U.S. International Development Finance Corporation) facility to Access Bank in 2022, this partnership is a meaningful roadmap towards TICAD 9 (Tokyo International Conference on Africa Development) to be held in Tokyo in 2025.”
Nigeria, a signatory to the Paris Agreement, has set ambitious targets to reduce greenhouse gas emissions, requiring substantial investments in climate change mitigation and adaptation measures.
Furthermore, the implementation of the deal aligns with Nigeria’s efforts to mobilise private sector funds for climate action, in line with Sustainable Development Goals 2 (Zero hunger), 7 (Affordable and clean energy), 13 (Climate action), and 17 (Partnerships for the goals). Moreover, it resonates with Japanese Prime Minister Kishida Fumio’s vision for a more climate-resilient and sustainable society, as announced at the Partnership for Global Infrastructure and Investment, a side event of the G7 Summit in Hiroshima in May 2023.
Through strategic collaborations and innovative financing mechanisms, Access Bank and JICA together with Citi are pioneering efforts to address climate change challenges, setting a precedent for sustainable development in the region.
Access Bank, a wholly owned subsidiary of Access Holdings Plc, is a leading full-service commercial bank operating through a network of more than 700 branches and service outlets spanning 3 continents, 20 countries and over 70 million customers. The Bank employs over 28,000 thousand people in its operations in Africa and Europe, with representative offices in China, Lebanon, India, and the UAE.
JICA is an Incorporated Administrative Agency under the Act of the Incorporated Administrative Agency – Japan International Cooperation Agency (Act No. 136, 2002) to contribute to the promotion of international cooperation as well as the sound development of Japanese and global economy by supporting the socioeconomic development, recovery or economic stability of developing regions. JICA is advancing its activities around the pillars of a field-oriented approach, human security, and enhanced effectiveness, efficiency, and speed.
Citi, the agent to the facility is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in nearly 160 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.
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