- Wema Bank spent up to N182 million on electricity costs in the first quarter of 2023.
- Wema Bank spent N136,177,000 on electricity costs between January and March 2022.
- The bank is also reliant on renewable energy for some of its operations, thereby reducing electricity costs for the business.
Wema Bank spent up to N182 million on electricity costs in the first quarter of 2023. The bank stated this in its Q1 2023 interim report. According to the report, the bank spent N182,783,000 on electricity between January and March 2023. Meanwhile, the bank spent N136,177,000 on electricity costs between January and March 2022.
Wema Bank is dealing with rising electricity costs like other Nigerian businesses. Small and large businesses are plagued with rising energy costs because of rising inflation (21.82% in January 2023, 21.91% in February 2023, and 2.04% as of March 2023). Rising inflation rates have affected the prices of commodities like premium motor spirit (petrol), and diesel that are used as fuels to power generators in small and large businesses.
However, the bank has offset some of its electricity costs by switching to renewable energy for some of its operations. This has reduced its electricity costs compared to other large businesses.
Coping with rising energy costs in Nigeria
Wema Bank is an advocate for renewable energy. In the last 7 years, the bank has taken some measures to become more energy efficient. Some of these include:
- In 2017, Wema Bank launched a solar-powered truck called Wema Bank on wheels.
- In 2019, Wema Bank said 18 of their branches migrated to solar power, leading to a reduction of 160,744kg of carbon emissions for the year.
- The bank’s ATMs use hybrid power supplies (solar, grid, and inverter).
- Wema Bank facilities are powered by LED energy-saving bulbs.
- The bank also has a generator-shutdown policy that ensures that most of their branches shut down their generators by 6 p.m. daily.
Some Nigerian businesses are also exploring alternative sources of electricity. These options include renewable energy, as in the case of the maritime company, NigerDock; natural gas variants, as in the case of Dangote Cement; and developing independent power plants, as in the cases of Imota Rice Mill, Dangote Refinery, and Lekki Deep Sea Port.
What you should know: Wema Bank also believes that Nigerian businesses need to explore other sources of electricity to cope with rising energy costs. Through its small and medium enterprise (SME) advisory services newsletter, Wema Bank highlighted renewable energy as an option for businesses to cope with rising electricity costs.
The Bank stated that rising energy costs and inadequate power supply from the country’s electricity grid have made it necessary for business owners in Nigeria to explore cheaper off-grid sources of energy.