Sterling Bank Approves N446m Loan for Power Supply to Markets, Others

By Adedapo Adesanya

Virtus Energy Solutions Limited, a decentralised energy consortium, has secured a five-year credit facility worth N446 million from Sterling Bank Plc. The financial support aligns with the Federal Government’s Energizing Economies Initiative which is supported by the Central Bank of Nigeria (CBN).

The company is implementing the Decentralized Energy Programme using high capacity stand-alone solar technology and Sterling Bank provided the fund to Virtus for the deployment of distributed energy solutions across selected economic clusters like the market places, shopping centres, and industrial facilities in Nigeria.

Reacting to the fund secured by Virtus, the Managing Director of Rensource, the company that sponsors Virtus, Ademola Adesina said, “This is indeed a significant achievement for Virtus that will further facilitate development financing in the renewable energy sector. It was only possible because government and the private sector collaborated to address financing challenges for off grid projects.”

Also, the Managing Director of Sterling Bank, Abubakar Suleiman, said the bank’s quest to lead the commercialization of renewable energy aided the investment in Virtus, “At Sterling we believe that the answer to power generation is a multiplicity of options and we want to be at the forefront of the commercialization of renewable energy.

“Our involvement in the Virtus transaction which provides N446 million in development financing demonstrates our commitment to improving the capacity of off grid private sector developers for power generation. We hope that this paves the way for more financing to the sector.”

According to the Director-General of the National Association of Commerce Industry Mines and Agriculture, Ayoola Olukanni, stable and constant electricity supply has been a major issue for companies in Nigeria, with Nigerian businesses estimated to have spent N5 trillion yearly on generators, maintenance, and fuel in order to keep business afloat but there will be new developments with the implementation of the initiative by the Federal Government and the apex banking institution in the country.

Rensource has successfully implemented the first phase of Sabon Gari Market, while construction is ongoing in 6 other markets – Iponri – Lagos, Edaiken – Edo, NEPA 1, NEPA 2, Isikan – Ondo, and Ita Osun – Ogun.

Additionally, planning is well underway to power – Kantin Kwari – Kano, Gbagi – Oyo and Eriwe Fish farm – Ogun.