Frequently Asked Questions
What is the PSRP?
The Power Sector Recovery Programme (PSRP) is a series of policy actions, regulatory, operational, governance and financial interventions being implemented by the Federal Government of Nigeria to restore the financial viability of Nigeria’s power sector and thereby achieve the aims of the power sector reforms. The PSRP also aims to sustainably increase electricity supply to customers by improving transparency and service delivery resolve consumer complaints, reduce losses and energy theft, and reset the Nigerian Electricity Supply Industry for future growth. It seeks to de-risk the power sector for additional private investment through a comprehensive package of financial, operational, governance, and policy initiatives.
What are the PSRP interventions for the power sector?
The PSRP covers four major interventions and these interventions are being closely monitored by the Power Sector Recovery Operations Secretariat.
I. Operational/Technical interventions
- Ensure a minimum of 4,500 MW of generation capacity is available daily.
- Support improved DISCO performance to encourage private sector investment.
II. Governance interventions
- Improve sector transparency.
- Improve on contract effectiveness.
- Communicate PSRP reforms to all stakeholders.
- Monitor the implementation of PSRP.
III. Policy interventions
- Implement fiscal and monetary policies in support of operational/technical targets.
- Increase electricity access.
IV. Financial interventions to eliminate sector deficits
- Establish sustainable electricity tariffs.
- Commit to full-fund projected sector deficits due to future tariff shortfall until sector becomes self-sustaining, financially.
- Secure financing sources and enforce payment discipline throughout the supply chain.
- Clear historical MDA debts.
How far has government gone with the implementation of the PSRP?
The following key activities have either been completed or in progress:
- Communication Strategy Opinion Research conducted (December 2020): A nationwide public opinion survey was conducted to facilitate an evidence-based communications campaign.
- The PSRP Finance/Technical Committee was constituted (March 2021 with the following members: Director-General, Budget, Federal Ministry of Finance and National Planning; Commissioner- Legal, Licensing &. Compliance, Nigeria Electricity Regulatory Commission (NERC); Deputy Governor, Economic Policy, Central Bank of Nigeria, Senior Management-level representatives of Nigerian Bulk Electricity Trading Plc, Bureau for Public Enterprises, Ministry of Power and Special Adviser Power, Presidency.
- PSRO Secretariat established (May 2021): A team of technical experts constituted to monitor and evaluate the Federal Government implementation of the PSRP.
- PSRP Engagement with Sector Leadership (September 2021): NERC (in conjunction with the PSRP Secretariat and the World Bank) held a virtual meeting with the leadership of power distribution companies (DisCos), generation companies (GenCos), and power sector government agencies on the PSRP. The meeting addressed the PSRP communications strategy, the tactical and strategic messaging for educating the public.
- DisCo Performance Improvement Plans approved and became Effective (Effective 1st July 2021): The Disco Performance Improvement Plans that allow DisCos to plan toward service improvements with measurable indicators to track the quality of service improvements and monitored by NERC, was approved and became operational.
- PSRP Financing Plan approved (November 2021): A credible financing plan for the PSRP Programme that identifies how tariff shortfalls will be paid off and promote sustainable growth of the Nigerian Electricity Supply Industry, to free public funds for education, health, and social protection programs, was approved.
- PSRP Civil Society Engagement Workshop (February 2022); A one-day workshop was held with Civil Society Organizations as part of the Nigerian Public education process on the PSRP programme.
What are the necessary measures put in place to ensure effective implementation of the policy?
A Monitoring framework has been set up, which includes the PSRO Secretariat to monitor the implementation of PSRP.
Who are the stakeholders involved in PSRP?
The Stakeholders of the PSRP include; Presidency, Generating Companies (GenCos), Distribution Companies (DisCos), and the Transmission Company of Nigeria (TCN), as well as various government agencies such as the Niger Delta Power Holding Company (NDPHC), the Nigerian Bulk Electricity Trader (NBET), the Nigerian Electricity Regulatory Commission (NERC), Nigerian Electricity Liability Management Company (NELMCO) and Central Bank of Nigeria (CBN), Federal Ministry of Power and Ministry of Finance, Budget and National Planning.
What are the roles of the stakeholders in PSRP?
The roles of the key stakeholders in the PSRP are derived from their organizational mandate as stated below:
i) The Federal Ministry of Power
- Formulation of broad policies for the development of the power sector and coordinating activities within the sector.
ii) National Electricity Regulatory Commission (NERC)
- Regulates the Nigerian Power Sector
iii) Generation Companies (GenCos)
- The GenCos are in charge of the actual generation of electricity via hydro and gas sources
- GenCos operates and manages the hydro or gas generating plants.
iv) Transmission Company of Nigeria (TCN)
- Oversees the development and maintenance of the transmission infrastructure.
- Responsible for the national inter-connected transmission system of substations and power lines and providing open access transmission services.
- Maintain the physical infrastructure that makes up the transmission grid and expand it to new areas
v) Distribution Companies (DisCos)
- DisCos serve as the connection between electricity consumers and the electricity grid. Due to their position in the supply value chain, the DisCos are also responsible for billing the consumers and revenue collection.
vi) Ministry of Finance, Budget and National Planning
- Payment mechanism for MDA debt payment.
- Advice on possible funding options for PSRP and operational mechanism.
vii) Central Bank of Nigeria (CBN)
- Nigerian Electricity Market Stabilization Facility(NEMSF) disbursement
viii) Niger Delta Power Holding Company (NDPHC)
- Complete all NDPHC power projects
- Complete all NDPHC transmission projects
- Finalize all commercial agreements
ix) Nigerian Bulk Electricity Trader (NBET)
- Act as the bulk electricity trader for the electricity industry
- Carry out Phased activation of power purchase agreements (PPAs)
- Develop a competitive procurement plan
- Upstream payment assurance plan
x) Nigerian Electricity Liability Management Company (NELMCO)
- Prepare strategy on liability settlement
- Assume all historical sector liabilities
Who are the PSRP implementation partners?
The World Bank Group
Power Africa
The French Development Agency (Agence Française de Développement)
Foreign, Commonwealth & Development Office (FCDO)
The African Development Bank Group (AFDB)
The Japan International Cooperation Agency (JICA)
Where do I access updated information on the PSRP?
The PSRP website www.psrp.gov.ng/news has updated information on PSRP information and activities.
How can I get a meter?
Visit this link to find your DisCo website for information on metering in your area.
I reported to my DisCo customer care and they weren’t responsive, what do I do?
Click on http://www.nerc.gov.ng to escalate the issue on the Nigerian Electricity Regulation Commission (NERC).
Who do I report an unsafe installation to?
Click on www.nemsa.gov.ng to report unsafe installations in your home or office
How can I consume less power?
To reduce your electricity consumption, switch off lights when not in use and limit the use of heavy appliances such as heaters, air conditioners and pumping machines which lead to higher consumption. The use of Energy Saving Bulbs is a simple way to start. Consuming less power will reduce your cost of electricity.
