Power Sector Recovery Programme: 2017 – 2021.

The Power Sector Recovery Programme (PSRP) is a comprehensive set of policy actions, regulatory measures, operational improvements, governance reforms, and financial interventions designed by the Federal Government of Nigeria (FGN). Over the next five years, this program aims to restore the financial health of Nigeria's power sector, enhance transparency and service delivery, address consumer complaints, reduce losses and energy theft, and RESET the Nigerian Electricity Supply Industry (NESI) for future growth. The objectives of the PSRP are to (i) restore financial viability in the power sector; (ii) improve the reliability of power supply to meet increasing demand; (iii) strengthen the sector's institutional framework and enhance transparency; (iv) implement clear policies that boost investor confidence in the sector; (v) establish a contract-based electricity market.
The PSRP outlines key interventions across four main areas to revitalize Nigeria's power sector (1) Financial Interventions aiming to establish sustainable electricity tariffs to cover service costs by 2021, fully fund sector deficits through a comprehensive Financing Plan that addresses both historical and future shortfalls, secure financing from domestic, international, and World Bank sources, clear historical debts owed by government agencies and automate future payments; (2) Operational/Technical Interventions aiming to ensure a minimum baseline power supply of 4,500 MWh/hour for grid stability, enhance performance through loss reduction, metering programs, and improved efficiency, address gas supply constraints for power generation, including pipeline vandalism and payment security issues; (3) Governance Interventions aiming to strengthen sector governance by appointing qualified board members and improving transparency through regular publication of operational and financial data, promote a contract-based market that encourages competition and performance, implement a communication strategy to inform stakeholders about the PSRP. A dedicated monitoring team will oversee the implementation of the PSRP, reporting directly to the Vice President; (4) Policy Interventions aiming to encourage private sector investments through fiscal and monetary policies, expand electricity access via off-grid and renewable energy solutions, including mini-grids and solar home systems, institutionalize a Least Cost Development Plan (LCDP) to guide future investments in power generation. These measures aim to restore financial viability, improve operational efficiency, enhance governance, and create a sustainable policy framework for Nigeria's power sector.