Strengthening climate finance for smallholders and agribusiness in Nigeria

Climate challenge & urgent need for adaptation

Nigeria’s agricultural sector is at the frontline of climate change, with erratic rainfall, floods, and prolonged droughts threatening food security and rural livelihoods. Smallholder farmers and agribusinesses—particularly those led by women and youth—struggle to access affordable finance for climate-smart solutions that enhance resilience.

Without targeted investment in adaptation, these challenges will intensify, exacerbating food insecurity, income loss, and environmental degradation.

Sterling Bank, a leading Nigerian financial institution, is responding to this urgent need by expanding its climate adaptation finance portfolio. With deep expertise in agriculture and renewable energy, Sterling Bank is positioned to de-risk investments in sustainable agriculture and scale solutions that strengthen climate resilience for farmers and businesses across Nigeria.

With support from the DFCD Origination Facility, Sterling Bank will develop and implement tailored financial products to bridge the climate finance gap, making adaptation solutions more accessible, investable, and scalable.

SNV plans to support Sterling Bank in:

• Establishing a Climate Finance Desk, to develop and expand financial products for climate adaptation. Thereby strategically positioning the bank as a climate leader in Nigeria.

• Identifying and de-risking climate-related projects, with targeted technical assistance for SMEs.

As one of Nigeria’s leading banks in agricultural lending, Sterling Bank is committed to scaling sustainable agriculture, and DFCD’s support aims to help accelerate this transition by de-risking investments in climate-smart agribusiness.

Expected impact

• Thousands of smallholder farmers and MSMEs gain access to climate-adaptive finance.

• Tens of thousands of hectares of farmland sustainably managed with improved resilience to climate change.

• Improved enabling environment for smallholder farmers and MSMEs to access climate-adaptive finance.

About the DFCD

The Dutch Fund for Climate and Development (DFCD) is a climate resilience fund, dedicated to supporting climate adaptation and mitigation projects which benefit vulnerable communities and landscapes. It is funded by the Dutch government and managed by a pioneering consortium of Climate Fund Managers (CFM), Worldwide Fund for Nature Netherlands (WWF-NL) and SNV, led by the Dutch Entrepreneurial Development Bank, FMO. For more information, please visit the DFCD website.

About SNV

SNV is a global development partner deeply rooted in the African and Asian countries where we operate. With 60 years of experience and a team of approximately 1,600 people, we strengthen capacities and catalyse partnerships that transform agri-food, energy and water systems. Working on the core themes of gender equality and social inclusion, climate adaptation and mitigation, and strong institutions and effective governance, we tailor our approaches to different contexts to achieve large-scale impact and create sustainable and more equitable lives for all.

Sterling Bank

Sterling Bank is a leading Nigerian financial institution with over 60 years of experience in delivering innovative banking solutions. With a strategic focus on the H.E.A.R.T sectors—Health, Education, Agriculture, Renewable Energy, and Transport—Sterling Bank drives inclusive economic growth through sustainable finance. Committed to advancing climate resilience, the bank is expanding its climate adaptation finance portfolio to support smallholder farmers, MSMEs, and agribusinesses in building a more sustainable future.

For more information and if you want to share any confidential information you may have regarding the intended project or company, please contact: dfcd@snv.org