Cascador, Sterling Bank Announce $200M SME Credit Backstop Fund

Esther Oluku

Business growth accelerator for Sub-Saharan Africa, Cascador, in partnership with Sterling Bank has announced a $200 million SME Credit Backstop Fund targeted towards expanding access to growth capital for debt-ready Nigerian Small and Medium scale Enterprises (SMEs).

The Fund will provide a defined credit-risk backstop to participating finance partners, with the model supporting up to $1 billion in outstanding credit capacity.

Chief Executive Officer, Cascador, Trish Thomas, said: “Nigeria is rich in entrepreneurial talent and innovation and yet their potential is constrained by lack of access to capital that matches where they are and what they are trying to achieve.

“The SME Credit Backstop Fund aims to transform potential into a reality by bringing the experience and capital of the ecosystem to create a practical route to debt for Nigerian businesses with proven traction. By sharing risk with lenders, and translating community trust into a bankable signal to lend, the fund can help more businesses access what they need to scale and create jobs.”

In his remarks, Group Executive, Sterling Bank, Obinna Ukachukwu, explained that alongside the additional protection of the credit backstop, the initiative brings together businesses recommended by participating venture funds and studios who know these enterprises and have supported their development.

“This combines a stronger borrower pipeline with structured assessment and ongoing monitoring, giving us greater confidence to provide larger, longer-term loans. As a lending partner, we see the potential for this arrangement to bolster SME lending, helping proven businesses access the capital they need to scale,” Ukachukwu said.