Access Bank, Japanese Agency Sign Agreement To Advance Climate Change Measures In Nigeria

Access Bank PLC has signed a historic loan agreement with the Japan International Cooperation Agency (JICA), towards environmental sustainability in the country.

Valued at US$ 75 million, the agreement is JICA’s first private-sector investment finance in the banking sector in the Sub-Saharan African region, with Citi acting as the sole coordinator and agent.

The ceremony held on Monday, according to Access Bank underscores its commitment to partnering JICA and Citi to support climate change measures in Nigeria.

In his remarks, the Managing Director/CEO of Access Bank PLC, Mr. Roosevelt Ogbonna, said the loan proceeds are expected 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. 

Ogbonna said, “At Access Bank, we recognise the urgent need for sustainable solutions to combat climate change. This landmark agreement with JICA reaffirms our 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, the Deputy Director General, Private Sector Partnership and Finance Department at JICA said the project is vital to implementing its vision for a safer environment in Nigeria.

Wakabayashi added that “As this project is positioned as the first bank loan facility by JICA’s private sector investment finance in the country, this significantly marks a new milestone in the long history of JICA’s cooperation with Nigeria and has a very special meaning indeed.

“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 that contribute to climate change measures in Nigeria, and we expect that this collaboration will be further deepened in the years to come.“

The Global Head of Export Agency Finance (EAF) at Citi, Mr. Richard Hodder, also commented on the impact of this international partnership saying, “At Citi, we are committed to bringing solutions to our clients 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.