- The company also intends to provide $100m in finance for firms that want to switch to clean energy over the next three years.
Nigeria’s biggest pension manager is looking into entering the clean energy sector. Stanbic IBTC, a subsidiary of the Standard Bank Group, intends to finance renewable energy development in the country and deploy solar energy for its offices. The company plans to run half of its 175 offices in the country on solar energy by 2022.
The company believes that this will significantly cut down its energy costs and dependence on fossil fuel generators. According to the bank, adopting solar solutions will reduce diesel costs by about 20 per cent. Last year, diesel costs constituted about 6.3 per cent of its operating expenses.
Stanbic IBTC also intends to lend $100 million to local companies over the next three years to help accelerate the adoption of clean energy solutions. The financial company is currently in talks with development financial institutions, including the International Finance Corporation and the U.S. International Development Finance Corporation, for on-lending facilities to Nigerian firms interested in adopting renewable energy solutions. Stanbic IBTC plans to finalize credit for two renewable transactions totalling $40 million this year.