Nigerian banks tap solar to cut rising energy bill
Nigeria’s biggest banks are increasingly turning to solar power to counter an energy crisis that’s squeezing profits and undermining operations.
The country’s top lenders from United Bank for Africa (UBA) and Access Bank to Sterling, Stanbic IBTC, Fidelity, GTBank, and Zenith Bank spent a combined N270.09 billion on power-related costs in 2024, almost double the N142.99 billion recorded a year earlier, according to data compiled from their annual financial reports.
As energy expenses soared 89 percent year-on-year, the financial industry, one of Nigeria’s biggest corporate energy consumers, is now aggressively investing in renewable power systems to cut diesel use, stabilise operations, and align with global climate goals.
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UBA with 25-branch rollout
United Bank for Africa has emerged one of the most aggressive adopters of clean energy, thanks to a long-term Power-as-a-Service (PaaS) deal involving Renewvia Solar Nigeria Limited, Incremental Energy Solutions (IES), and Empower New Energy, a Nordic renewable energy financier.
The first phase of the partnership covers 25 branches in five states, delivering 1.5 megawatts-peak (MWp) of solar capacity and 3.6 megawatt-hours (MWh) of battery storage. The installations now generate more than 166,000 kilowatt-hours of clean electricity monthly, cutting over 228,000 kilograms of CO₂ emissions each month.
UBA’s energy costs, spanning fuel, repairs, and maintenance, surged from N59.25 billion in 2023 to N101.28 billion in 2024, highlighting the urgency of its solar shift.
“This partnership with UBA marks a major milestone in our mission to deliver reliable, clean energy to commercial clients,” said Adebowale Dosunmu, managing director, Renewvia Solar Nigeria.
Under the 10-year lease-financing model funded by Empower New Energy, Renewvia structured and installed hybrid solar systems designed to provide an uninterrupted power supply, protect sensitive IT infrastructure, and improve customer experience.
UBA’s rollout will expand to 50 branches in 18 states, totalling 3 MWp of solar power and 7 MWh of battery storage.
Data sourced from its financial report show the bank has also powered 66 ATMs through alternative energy systems, part of a broader strategy to reduce its reliance on diesel.
Sterling Bank’s solar skyscraper
Sterling Bank has taken sustainability to a new level, unveiling the first corporate headquarters in Africa fully powered by solar energy.
Its 17-storey Sterling Towers in Lagos features 3,250 crystalline silicon photovoltaic glass panels covering 6,500 square metres, producing 995 kilowatts-peak (kWp) of power, the largest photovoltaic building integration on the continent.
Over 25 years, the panels are projected to generate 10,500 MWh of clean electricity, completely powering the bank’s head office and eliminating diesel generator dependence.
The lender has also expanded solar coverage to 68 branches and 196 ATMs, representing almost half of its entire ATM network.
Analysts say Sterling’s pivot is expected to save the bank over N1 billion annually in diesel and maintenance costs, a significant hedge against volatile fuel prices that have plagued the industry.
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Access Bank puts climate at the core
For Access Bank, Africa’s largest lender by assets, renewable energy adoption forms part of a broader climate governance strategy.
The bank’s energy costs rose from N756 million in 2023 to N1.21 billion in 2024, prompting it to accelerate solar deployment and green initiatives.
Access Bank has now installed over 974 solar-powered ATMs, automated operations to cut paper use by 72 percent, and halved waste sent to landfills at its headquarters.
It has also integrated climate risk into financial decision-making, adopting international standards such as the Task Force on Climate-related Financial Disclosures (TCFD), Partnership for Carbon Accounting Financials (PCAF), and the IFRS S1 and S2 sustainability reporting frameworks.
Through its Sustainable Finance Accelerator, the lender has financed dozens of renewable energy businesses, combining funding with technical assistance and training.
Stanbic IBTC adds 56 solar-hybrid branches
Stanbic IBTC Holdings has transitioned 56 of its locations, including 42 bank branches, 12 pension offices, and two head offices to solar-hybrid power systems, according to the financial institution’s 2024 report.
The move came as the bank’s premises and maintenance expenses surged from N6.01 billion in 2023 to N10.01 billion in 2024, a 66 percent rise, driven by fuel and utility inflation.
Stanbic says the installations combine solar, battery, and limited diesel backup to ensure reliability while drastically reducing emissions.
The lender also recycled 196.6 tonnes of paper and planted 60,000 trees in partnership with One Tree Planted, reinforcing its ESG commitments.
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Fidelity, First Bank, and Wema join race
Fidelity Bank, which saw its electricity costs jump from N23.26 billion to N34.62 billion, has rolled out solar installations at several branches and switched its Lagos head office to a dedicated grid connection, significantly reducing diesel use.
The bank also funded community solar projects in Akwa Ibom and Lagos, part of its pledge to achieve net-zero emissions by 2050.
First Bank, Nigeria’s oldest lender, faced a 76 percent surge in its power-related expenses from N9.81 billion to N17.29 billion, and has begun evaluating solar options for select regional hubs.
Wema Bank, too, is feeling the strain, with diesel expenses doubling from N872 million to N1.74 billion. The bank is now exploring hybrid power systems to reduce operational volatility.
GTBank starts small but plans to scale
Guaranty Trust Bank (GTBank) reported occupancy costs, covering diesel, fuel, and electricity, totalling N17.29 billion in 2024, up from N9.81 billion the year before.
While its renewable transition remains modest, GTBank currently operates seven branches on solar and has 48 ATMs powered by alternative energy sources. More installations are planned for high-cost metropolitan areas in 2025–2026.
Zenith Bank’s N100 billion energy bill
Zenith Bank, one of Nigeria’s largest banks by market capitalisation, posted one of the steepest jumps in energy expenses.
Its fuel and maintenance costs skyrocketed from N41.17 billion in 2023 to N100.9 billion in 2024, a 145 percent increase, making it one of the biggest single contributors to the sector’s N270 billion total.
Industry experts say such cost inflation is forcing even the most profitable banks to adopt renewables faster than expected.
“Solar energy isn’t just a sustainability tool; it’s becoming a financial necessity,” said Temitope Olatunde, an energy transition analyst.
Rising costs, falling reliability
Nigeria’s grid electricity supply remains unreliable, averaging below 5,000 MW daily for a population of over 200 million.
With power cuts often lasting hours and diesel prices at record highs, many financial institutions rely almost entirely on self-generation. For banks operating nationwide branch networks and 24-hour ATMs, that dependence has turned into a costly liability.
“If the sector transitions even half of its branch network to hybrid solar systems, it could save over N100 billion annually while cutting emissions dramatically,” estimated Tomiwa Aluko, an energy transition analyst at Lagos-based SME Funds Capital.
Aluko noted that solar investments also enhance balance sheet stability. “Energy self-sufficiency reduces operational volatility and protects profitability from macroeconomic shocks like fuel price spikes or FX fluctuations.”
At N988 per litre, BusinessDay’s estimates show that a medium-sized branch using 30 litres daily spends about N1 million per month on diesel alone. For a large bank with hundreds of branches, that translates into N2.5 billion–N3 billion annually, excluding maintenance and equipment costs.
“Our monthly diesel bill rivals our staff costs in some states. Solar isn’t just an ESG move, it’s financial survival,” an executive at one tier-one lender at its Isolo branch told BusinessDay.
By contrast, solar-hybrid systems offer predictable costs, lower maintenance, and significant long-term savings.
