Overview

The Power Sector Recovery Programme (PSRP) is a comprehensive initiative by the Federal Government of Nigeria aimed at restoring the financial viability and operational efficiency of the Nigerian Electricity Supply Industry (NESI). The program outlines a series of policy actions, operational improvements, and financial interventions to address the long-standing challenges in the sector, including accumulated deficits, poor distribution company (DisCo) performance, inadequate metering, unpaid debts by Ministries, Departments, and Agencies (MDAs), and lack of cost-reflective tariffs. Key components include eliminating the accumulated deficit from 2015-2016, committing to fund future deficits from 2017-2021, enforcing DisCo performance through business continuity plans, establishing data-driven decision-making processes, guaranteeing minimum daily energy output of 4,000 MWh, implementing a robust loss reduction plan including metering, ensuring MDA debt repayment and future payment mechanisms, restoring sector governance by appointing boards for key entities (NBET, TCN, NELMCO, NDPHC, REA, BPE), increasing electricity access via off-grid renewable solutions, developing a foreign exchange policy for the sector, making electricity market contracts effective, and implementing a five-year tariff trajectory to achieve cost-reflective tariffs. The program is supported by the World Bank Group and involves multiple stakeholders including the Nigerian Electricity Regulatory Commission (NERC), the Central Bank of Nigeria (CBN), and international financial institutions. The PSRP aims to reset the sector by addressing structural inefficiencies, improving governance, and ensuring sustainable financing mechanisms.

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