NIBSS spends N150 million monthly on power to keep Nigeria’s payments running

Nigeria Inter-Bank Settlement Systems (NIBSS) spends roughly N150 million every month on powering its operations, with diesel accounting for a significant portion of this expense. Managing Director Premier Oiwoh revealed this during the one-year anniversary celebration of Tango Brook Technologies in Lagos. Oiwoh explains that the expense is crucial to ensure NIBSS' systems and servers function smoothly, preventing disruptions to electronic transfers due to power outages.

The organization also employs multiple generators and fuel monitoring systems to maintain continuous operations. At the event, Innocent Osagiede, Head of Operations and Finance/CFO Directorate at NIBSS, mentioned a 22,000-litre diesel tank in front of the building and another day tank near the generators. He emphasized that the company must keep the day tank's fuel level above 5,000 litres, and internal security personnel are responsible for monitoring the level and activating the pump when necessary.

Osagiede shared an incident where a security officer disregarded the rule, causing a generator failure that took about three minutes to resolve. This incident highlighted the importance of fuel monitoring and control mechanisms beyond just managing costs. To address these challenges, NIBSS is employing advanced monitoring technology to better track generator fuel levels, which reduces manual checks and ensures timely fuel replenishment.

Furthermore, Osagiede pointed out the significance of monitoring the quality of diesel used, as substandard fuel could impact generator performance. The rising cost of powering business operations is prompting other organizations to explore more stable energy expenditure methods. Katherine Itua, Executive Director, Finance & Investments at Consolidated Hallmark Insurance Limited, shared that the company is increasingly relying on solar power to lessen its dependency on diesel generators.

Itua stated that the insurer's headquarters doesn't draw power from the national grid and mainly relies on generators and a solar inverter system. The company accelerated its second phase of solar inverter upgrades due to escalating fuel costs, aiming to reduce reliance on diesel and enhance predictability in its power expenses.

Itua noted that their projections for diesel prices in 2026 are around N2,000 per litre, compared to the current rate of about N1,900, allowing them to navigate the cost increase. In addition to solar power, Consolidated Hallmark Insurance Limited is harnessing disciplined budgeting and process automation to curb escalating operating costs, rather than shifting the burden onto customers.