Nigerian banks spent a total of ₦270.09 billion on power-related expenses in 2024, almost double the ₦142.99 Billion recorded in 2023, according to the Buiness Day newspaper. With the increase placed on the three bands (A, B, C) by the National Electricity Regulatory Commission, a soar in energy expenses was inevitable. The costs of maintaining power supply in branches across the country has been shown to have increased by over 89%.

The arbitrary rise in the cost of maintaining constant power supply in several branches and in ATMs across the country has caused the annual expenditure of the banks to soar. Expenditure on power now rivals other domestic costs, which has taken a toll on the banks.

Another leading factor in the rise of this expenditure is the constant collapse of the national grid. The grid collapsed a total of 12 times in 2024, which forced many banks to partly depend on diesel supply, whose price also went up by more than 100% in the same year.

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To cut back expenses, some of the leading banks in the industry have chosen to partner with renewable energy firms in the country and explore possible means of getting off the grid supply. Partnerships with firms such as Renewvia Solar Nigeria Limited, Incremental Energy Solutions (IES), and Empower New Energy, has proved effective in fostering transition from the nation’s national grid to less financially consuming initiatives such as solar energy, and dedicated power supply.

The United Bank for Africa, for example, has proved to be one of the leading adopters of clean, renewable energy, by rolling out solar energy to 25 branches in five states. The initiative currently delivers 1.5 mega-watts-peak (MWp), 3.6 megawatt-hours (MWh), and more than 166,000 kilowatt-hours of electricity hours.

Other Nigerian banks like Sterling Bank PLC also took the sustainability of renewable supply to a whole different level. The bank’s corporate headquarters, the 17-storey Sterling Towers, located at Marina, Lagos State, now runs fully on Solar power, making it the first photovoltaic tower in Africa.

The tower’s 6500 Square Metres of silicon photovoltaic glass panels produce 995 kilowatts-peak of power. The transition to the renewable source is expected to save the financial giants over one billion naira annually in diesel and maintenance costs, a good alternative to the exorbitant fuel prices that constantly affect the industry.

First Bank, Access Bank, Fidelity Bank, and Wema Bank have also implemented solar installation in their branches across the country. The initiative follows significant increases in power supply costs experienced by their branches across the country in the previous year.

More Nigerian banks are expected to transition to solar-hybrid power supply systems by the end of 2025. The systems have being shown to offer more predictable costs, and low maintenance to the banks. Besides, they are long-term savings solution for the financial institutions, helping them reduce power costs significantly.

Meiza Nigeria