By Stanley Onyeka, Lagos
Access Bank Plc has secured a $75 million facility from the Japan International Cooperation Agency (JICA) to support climate change measures in Nigeria.
Citi, a global leader in wealth management and a valued personal bank in United States, acted as the sole coordinator and agent.
In a statement on Tuesday, the bank said the facility underscores a commitment of Access Bank, JICA and Citi to support climate change measures in Nigeria.
The loan is expected to be used to finance a wide range of sub-projects, including renewable-energy, energy-saving and agriculture-related that contribute to climate change measures.
The Managing Director, Access Bank Plc, Roosevelt Ogbonna, was quoted as saying: “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.”
Similarly, Deputy Director-General, Private Sector Partnership and Finance Department, JICA, Jin Wakabayashi, who emphasised the importance of implementing the project, said it was the first loan facility by the agency’s private sector investment finance in Nigeria, and marked a new milestone in the long history of its cooperation with the country.
“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,” he said.
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.
Also, Richard Hodder, Global Head of Export Agency Finance (EAF) at Citi, expressed the lender’s commitment to providing solutions that facilitate investments linked to energy transition, energy security and key drivers of economy and growth.
He continued: “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).
“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.”
