72 Views

Nigerian Banks Turn To Renewable Energy To Cut Cost

In a bid to cut the increasing cost of running their branches across the country, many Deposit Money Banks (DMBs) are now opting for renewable energy.

Lesdership gathered that the new strategy by the banks is to enable them spend less on diesel and maintenance of their power generating plants.

While some of the banks are already at the pilot stage of test-running solar panels in some of their branches, others have perfected the use of inverters in running their Automated Teller Machines (ATM) across the country.

It was also gathered that some of the banks now use Uninterrupted Power Supply (UPS) devices in some of their operations without reverting to power generating plants.

One of them, Sterling Bank, recently commenced the pilot scheme of its solar plan. Likewise, Fidelity Bank which spent over N372 million in 2015 on power generation said it has now adopted the use of UPS’ and inverters to power its ATMs and major operations.

This cost cutting measure has become even more popular among the banks as a recent directive from the federal government and tussle with labour unions put paid to their plans to cut personnel cost by shedding staff weight.

The managing director of Wema Bank, Segun Oloketuyi, said the bank had become very prudent in the management of its resources to deliver on its set goals.

He said one of the strategies the bank had adopted was to allow some of its departments that have no reason to stay beyond a certain time, close early, to reduce energy consumption.

LEADERSHIP reports that the price of diesel has lately, risen to as high as N210 per liter, spiking the cost of operations as irregular power supply has necessitated the use of power generating plants not only for the banking halls, but also for the ATMs.

Recall that in 2015 as well as early this year, at the peak of the fuel scarcity, many banks limited their hours of operation due to unavailability of diesel, while some banks could no longer operate their ATMs.

Consequently, some of the banks as a cost cutting measure, have resorted to the use of inverters to run their ATMs and for major operations.

ALSO READ  Bread Seller Turned Model, Olajumoke Orisaguna Set To Start Her Own Bakery

Last year, five banks spent N18.78 billion on fuel and maintenance costs, an expense that is eating into their declining income.

While some banks with smaller branch network spent close to N400 million on fuel and maintenance costs, bigger banks with expansive branch network were the worst hit as they had to spend more on diesel and servicing of their power generators.

One of the top tier banks spent no less than N10.36 billion on fuel and generator maintenance in 2015 while another spent about N5.78 billion on generating power to run its operations last year.

The growing cost of operation, alongside the rising non-performing loans in the  banking industry are evident in the six months’ result of banks for the first half of 2016 as they continued to post lower profits. Eight banks recorded a total profit of N111.13 billion, indicating a 14.3 per cent decline compared to N129.73 billion profit recorded in the first half of 2015. Although the 2015 results of the industry had shown a declining profit, there are indications that the situation would not get better as analysts predict a lower profit from the industry at the end of the 2016 financial year.

According to the Managing Director and Chief Executive of SunTrust Bank, Nigeria’s first full financial technology bank, Muhammed Jubrin, the cost of maintaining a large branch network has been a dead weight for the banking industry.

He stated that SunTrust Bank, which recently commenced operation, would only have the minimum number of branches required to operate as the cost of operation of most banks was growing under the weight of branch network which cost a lot of money to maintain.

According to experts, while most renewable energy options require higher capital investment initially, in the long run, the costs associated with generation and maintenance over the lifetime of the systems are marginal. As such, they are economically viable especially in developing nations.

 

 

Source: Leadership.ng

Get the best viral stories straight into your inbox!

Don't worry, we don't spam

Leave a Comment

Your email address will not be published.

Latest Posts

How Police Arrested BBOG Convener, Oby Ezekwesili, And 15 Others In Abuja
Politics
1 views
Politics
1 views

How Police Arrested BBOG Convener, Oby Ezekwesili, And 15 Others In Abuja

PH - January 24, 2018

Oby Ezekwesili, the convener of the Bring Back Our Girls (BBOG) advocacy group was arrested by officers of the Nigeria Police Force (NPF) on Tuesday, January 23, 2018. Ezekwesili and…

As Seen On Twitter: Man Wants Future Wife To Take Over Responsibilities If She Proposes
Buzz & Trends
8 views
Buzz & Trends
8 views

As Seen On Twitter: Man Wants Future Wife To Take Over Responsibilities If She Proposes

PH - January 24, 2018

This twitter user asked an interesting question. Who pays for union if a girl proposes to the man? Who pays for the bride price, trad wedding, court/church…

According To Psychologists, Here Is What Your Sitting Posture Says About You (Photos)
Food and Health
18 views
Food and Health
18 views

According To Psychologists, Here Is What Your Sitting Posture Says About You (Photos)

PH - January 24, 2018

According to psychologists, the sitting position of a person talks a lot about their intentions and personality. It reveals our hidden instincts and wishes. And even if…

“I Don’t Roll With Men Who Can’t Afford Recharge Cards” – TBoss (Video)
Entertainment
20 views
Entertainment
20 views

“I Don’t Roll With Men Who Can’t Afford Recharge Cards” – TBoss (Video)

PH - January 24, 2018

During the day 4 of the Big Brother Naija reunion, former contestant, Tokunbo Idowu popularly known as Tboss while discussing her popular private jet declaration during the…

Bola Tinubu Gives Clarification Why He Visited President Buhari
Politics
17 views
Politics
17 views

Bola Tinubu Gives Clarification Why He Visited President Buhari

PH - January 24, 2018

APC National leader, Bola Tinubu, says the closed door meeting he had with President Buhari on Tuesday, had nothing to do with the explosive open letter ex-president Olusegun Obasanjo released earlier the…

The Full Story Of How Drake Cut Burna Boy From His ‘More Life’ Project After Recording Together
Entertainment
27 views
Entertainment
27 views

The Full Story Of How Drake Cut Burna Boy From His ‘More Life’ Project After Recording Together

PH - January 24, 2018

Remember that time when Drake was pictured with Burna Boy and the Internet went wild with excitement in 2017? Well, the full story is out, and it isn’t…

Viral Pre-Wedding Photos Of A Very Tall Guy And His Fiancee
Romance and Love
23 views
Romance and Love
23 views

Viral Pre-Wedding Photos Of A Very Tall Guy And His Fiancee

PH - January 24, 2018

When it comes to getting a partner, every individual has their personal preference. This pre-wedding photos of a very tall guy and his beautiful fiancee is just…

Wayne Rooney Sells Off His BMW i8 Electric Supercar After Driving Ban (Photos)
Sports
28 views
Sports
28 views

Wayne Rooney Sells Off His BMW i8 Electric Supercar After Driving Ban (Photos)

PH - January 24, 2018

Everton striker and former England captain, Wayne Rooney, has sold off his BMW i8 electric supercar he bought for around £50,000  in 2015. This comes after the…

PDP Reportedly Shortlists Five Heavyweight Politicians For 2019 Presidential Elections (See Full List)
Politics
96 views
Politics
96 views

PDP Reportedly Shortlists Five Heavyweight Politicians For 2019 Presidential Elections (See Full List)

MT - January 23, 2018

The Peoples Democratic Party (PDP) is reportedly banking on seven people to challenge the All Progressives Congress (APC) in the presidential contest ahead of the 2019 general…

How Buhari Ordered For My Arrest And That Of My Colleagues In Abuja – Oby Ezekwesili
Politics
82 views
Politics
82 views

How Buhari Ordered For My Arrest And That Of My Colleagues In Abuja – Oby Ezekwesili

MT - January 23, 2018

Co-leader of the Bring Back Our Girls (BBOG) movement, Oby Ezekwesili, has revealed on her Twitter account this Tuesday afternoon that some police officers deployed by the…

What Manchester United Number 7 Jersey Means To Me – Alexis Sanchez
Sports
60 views
Sports
60 views

What Manchester United Number 7 Jersey Means To Me – Alexis Sanchez

MT - January 23, 2018

Manchester United striker, Alexis Sanchez, has revealed what the club number 7 jersey means to him. The Chilean international was handed the iconic number seven shirt on…

Oscars 2018: See The Full List Of Nominees For The 90th Annual Academy Awards
Entertainment
58 views
Entertainment
58 views

Oscars 2018: See The Full List Of Nominees For The 90th Annual Academy Awards

MT - January 23, 2018

  The nomination list for the 90th annual Academy Awards have been released. The Oscars will take place at Los Angeles’ Dolby Theater on March 4, 2018 and…

Here Is The Intriguing Life Of Talented Nigerian Rapper, Ycee
Entertainment
55 views
Entertainment
55 views

Here Is The Intriguing Life Of Talented Nigerian Rapper, Ycee

MT - January 23, 2018

Oludemilade Martin Alejo popularly known by his stage name YCEE, is a Nigerian rapper and songwriter currently signed to Tinny Entertainment. Early Life & Education YCEE was…

Davido Dresses Up Like An Old Man And This Is What He Looks Like
Entertainment
78 views
Entertainment
78 views

Davido Dresses Up Like An Old Man And This Is What He Looks Like

MT - January 23, 2018

Davido shot the video for his first song of the year ‘Flora My Flawa’ yesterday and he had some funny costumes. He’s seen here dressed as an…

These 5 Female Nigerian Celebrities Will Make You Embrace Low Cut
Entertainment
79 views
Entertainment
79 views

These 5 Female Nigerian Celebrities Will Make You Embrace Low Cut

MT - January 23, 2018

Deciding to wear a low cut takes a lot of bravery and commitment and many Nigerian celebrities have taken up this style. Many international celebrities like Teyanna…

A Background Into The Fabulous Life Of Petite Singer, Di’Ja
Entertainment
66 views
Entertainment
66 views

A Background Into The Fabulous Life Of Petite Singer, Di’Ja

MT - January 23, 2018

Hadiza Blell, better known by her stage name Di’Ja, is a Nigerian singer, visual artist and songwriter. She is currently signed to Mavin Records. Early Life &…

President Buhari Reveals How He Will End Herdsmen Killings
Politics
62 views
Politics
62 views

President Buhari Reveals How He Will End Herdsmen Killings

MT - January 23, 2018

President Muhammadu Buhari yesterday assured Nigerians that the rising attacks on communities by herdsmen will soon be brought under control by security forces deployed to the vulnerable…

List Of 16 States Ready To Establish Cattle Colonies For Herdsmen
Politics
73 views
Politics
73 views

List Of 16 States Ready To Establish Cattle Colonies For Herdsmen

MT - January 23, 2018

Sixteen states in the nation have agreed to establish cattle colonies for herdsmen. The establishment of cattle colonies was an idea proposed by the federal government to…

Loading...