The Nigeria Inter-Bank Settlement Systems (NIBSS) incurs a significant monthly expenditure of at least N150 million on electricity, with a substantial portion, approximately N100 million, allocated to diesel. This disclosure was made by NIBSS Managing Director, Premier Oiwoh, at the one-year anniversary celebration of Tango Brook Technologies in Lagos.
According to Oiwoh, the substantial spending on power is deemed necessary to ensure the uninterrupted operation of its systems and servers, which facilitate electronic transfers. He emphasized that uptime is the top priority, taking precedence over cost considerations. Oiwoh was represented at the event by Innocent Osagiede, NIBSS Head of Operations and Finance/CFO Directorate.
To maintain a stable power supply, NIBSS has implemented a robust infrastructure, including a 22,000-litre diesel tank located in front of its building and a smaller day tank near its generators. The day tank is required to maintain a minimum level of 5,000 litres, and internal security personnel are responsible for monitoring the level and initiating pump operations when necessary.
Osagiede shared an incident where a security officer's oversight led to a temporary generator shutdown, highlighting the complexities of managing diesel costs and ensuring operational continuity. NIBSS relies on four generators, comprising two 800 KVA and two 500 KVA units, to support its critical payment infrastructure. The organization also utilizes fuel monitoring systems to track generator fuel levels and optimize refills.
The quality of diesel supplied to NIBSS facilities is also a critical consideration, as poor fuel quality can impact generator performance. As a provider of critical payment infrastructure for banks and financial institutions, NIBSS operates the Nigeria Central Switch, facilitating interconnectivity and interoperability for retail electronic payments. Its platforms support bulk electronic payments for public and private organizations.
A prolonged power interruption could have severe consequences, including server shutdowns and disruptions to transfers and other payment activities. In response to rising fuel costs, Consolidated Hallmark Insurance Limited has accelerated its shift to solar power, with the company's Executive Director, Finance and Investments, Katherine Itua, citing the goal of reducing reliance on diesel and making power costs more predictable.
Itua disclosed that the company's head office is not connected to the national grid and primarily relies on generators and a solar inverter system. By speeding up the second phase of its solar inverter upgrade, the firm aims to mitigate the impact of rising fuel costs, which are projected to reach N2,000 per litre in 2026, compared to the current price of around N1,900 per litre.
Key points
- NIBSS spends at least N150 million monthly on electricity, with diesel accounting for approximately N100 million.
- The organization's critical payment infrastructure, including the Nigeria Central Switch, handles interconnectivity and interoperability for retail electronic payments.
- Consolidated Hallmark Insurance Limited is shifting to solar power to reduce its reliance on diesel and make power costs more predictable.
