By: Oluwamuyiwa Akinmejiwa, End User Business Leader, Secure Power Business Unit – Anglophone Africa, Schneider Electric

As the largest country in West Africa by population, Nigeria has significant influence in the region, and many banks that started in Nigeria have expanded into West Africa and Sub-Saharan Africa, shaping the regional financial landscape.

Due to significant reform, Nigeria’s banking sector has evolved from a small, concentrated industry to a dynamic and internationally influential financial powerhouse over the past few decades, driven by strategic policies, population expansion and technological innovation.

This sector continues to grow significantly, particularly in terms of asset size and profitability. According to reports, in Q1 2025, Nigeria’s top 10 banks – including Ecobank and Guaranty Trust Bank – reported a combined total asset base of approximately $142 billion, up from $137 billion in 2024. This growth aligns with Nigeria’s broader economic ambitions, including a targeted GDP of $1 trillion.

At the same time, digital transformation has notably reshaped the country’s banking industry, enhancing customer experience, improving operational efficiency and strengthening risk management.

With Nigeria’s growing population and increasing digital adoption, the banking sector is leveraging technology to drive financial accessibility and stability. Fintech innovations, AI tools and enhanced cybersecurity are key drivers shaping the future of banking, ensuring efficiency, security and customer satisfaction.

The need for stable and clean power

However, the banking sector relies heavily on stable and clean power to support digitalisation. Stable power ensures uninterrupted electricity supply, but the country faces a gap between its 13 625MW installed capacity and the 5 237MW actually supplied, leading to reliability issues. Clean power, on the other hand, means a power supply to loads devoid of voltage spikes, frequency fluctuations and electrical noise, which are critical for IT infrastructure and financial data integrity.

These challenges stem from ageing infrastructure and grid instability due to sudden changes in load, plant power outages, financial constraints and dependency on fossil fuels. Frequent power fluctuations can result in data corruption, system failures and operational disruptions, posing a risk to modern banking systems that rely on real-time digital processes.

Addressing these issues requires modernising infrastructure, investing in renewables and enforcing stricter power quality regulations. Without stable and clean electricity, Nigeria’s push toward digital finance risks being undermined by inconsistent power supply.

While financial institutions may not control the grid, transmission lines or distribution networks, they can safeguard their operations by deploying high-efficiency Uninterruptible Power Supply (UPS) solutions, which is a core strength of Schneider Electric.

More than just backup power

UPS systems do more than just provide backup power. They actively regulate voltage, filter out harmonic distortions and mitigate frequency fluctuations, ensuring clean energy reaches servers and sensitive equipment. This is crucial for data centres, where instability can compromise operational efficiency and risk data loss.

Recognising the critical nature of continuous power supply, Schneider Electric has designed live-swappable UPS systems, allowing faulty components, such as static switches and power modules, to be replaced without shutting down operations. This minimises downtime while maintaining efficiency. Additionally, these UPS units integrate arc flash protection, safeguarding personnel during maintenance and replacement activities.

As digital banking in Nigeria expands, power quality and stability are non-negotiable. Advanced UPS technology is therefore key to ensuring that financial institutions maintain clean, efficient and resilient power, safeguarding their IT infrastructure from voltage dips, frequency fluctuations and data corruption.