Cascador and Sterling launch $200M fund to backstop startup loans in Nigeria

Cascador and Sterling Bank have set up a $200 million SME Credit Backstop fund that guarantees part of a bank's losses if a borrower defaults, aiming to support up to $1 billion in loans. Initial loans reach $250,000 in local currency with plans to raise the cap to $1 million, using AI-powered underwriting and VC nominations.

• The $200M fund aims to back up to $1B in loans to Nigerian startups
• Initial loans up to $250,000 in local currency, with a target of $1 million
• Borrowers are nominated by VC firms and vetted via AI underwriting
• Only about one in five Nigerian businesses had a bank loan in 2025