EFFECTS OF SUSTAINABLE ENERGY CONSUMPTION ON THE PERFORMANCE OF DEPOSIT MONEY BANKS IN AKURE, ONDO STATE, NIGERIA

Abstract

The irregularity of power supply in Nigeria has necessitated the use of alternative source of power supply for banking operations in the Nigerian Deposit Money Banks and this has hampered the financial and operational performances of the banks. Therefore, this study examined the effect of sustainable energy consumption on the performance (financial and operational) of Deposit Money Banks in Akure, Ondo state, Nigeria. A well-structured questionnaire was used as basis for investigation, a sample of 77 respondents who are staff (facility manager, Unit manager and operational manger) of Deposit Money Banks in Akure were investigated. Frequencies, tables, percentages, relative importance index, mean, standard deviation were used to analyse data while partial least square structured equation modelling (PLS-SEM) was used to test the hypotheses. This study identifies Generating Plant as the most used alternative source of energy with a mean value of 4.19 and also a large significant effect of sustainable energy consumption on financial performance, a small significant effect of sustainable energy consumption on operational performance. Thus, it is concluded that sustainable energy consumption is an important factor to be considered for financial performance in Deposit Money Banks. Based on these findings its recommended that Deposit Money Banks should embrace the use of renewable energy for banking operations such as the adoption of environmental technologies, energy efficiency education and investment in Green facilities for better financial and operational performance.