Access Bank Secures $75m Climate Finance Boost With JICA

Access Bank PLC, Nigeria’s leading commercial bank, has entered into a groundbreaking loan agreement with the Japan International Cooperation Agency (JICA), marking a significant step towards advancing climate change initiatives in the country.

This historic deal, valued at US$ 75 million, represents JICA’s inaugural private sector investment finance in the Sub-Saharan African banking sector, with Citi serving as the exclusive coordinator and agent.

The signing ceremony, held on Monday, February 5, 2024, underscores the joint commitment of Access Bank, JICA, and Citi to bolster climate change measures in Nigeria. The funds from this landmark agreement are earmarked for various sub-projects, including renewable energy, energy-saving, and agriculture-related initiatives contributing to climate change resilience.

Roosevelt Ogbonna, Managing Director/CEO of Access Bank PLC, emphasized the partnership’s significance, stating, “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, mitigating the effects of climate change, 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, highlighted the historic nature of the project, saying, “This project significantly marks a new milestone in the long history of JICA’s cooperation with Nigeria. We are delighted to work with a reputable and quality partner like Access Bank. Under this partnership, JICA’s Facility is expected to be used for projects contributing to climate change measures in Nigeria, and we expect that this collaboration will be further deepened for the years to come.”

Richard Hodder, Global Head of Export Agency Finance (EAF) at Citi, emphasized the impact of the international partnership, stating, “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. This partnership is a meaningful roadmap towards TICAD 9 (Tokyo International Conference on Africa Development) in 2025.”

Nigeria, a signatory to the Paris Agreement, is actively working towards ambitious targets to reduce greenhouse gas emissions. The implementation of this deal aligns with Nigeria’s efforts to mobilize private sector funds for climate action, resonating with Sustainable Development Goals 2, 7, 13, and 17. It also aligns with Japanese Prime Minister Kishida Fumio’s vision for a more climate-resilient and sustainable society.

Through this strategic collaboration and innovative financing, Access Bank and JICA, together with Citi, are pioneering efforts to address climate change challenges, setting a precedent for sustainable development in the region.