The Federal Government has said that the Power Sector Recovery Programme (PSRP) was designed to boost electricity supply across the country.
Speaking at a workshop in Abuja on Wednesday, chairman of Nigerian Electricity Regulatory Commission (NERC), Sanusi Garba, said the government was committed to ensuring an efficient power industry that guarantees Nigerians adequate, reliable and affordable electricity.
According to Garba, the PSRP was initiated by the Federal Government with the support of the World Bank to achieve the goal of Nigerians having access to adequate, reliable and affordable electricity.
“Notwithstanding the power supply industry is now private sector-driven; its relevance to economic growth and industrial development will require strategic government interventions.
“At this developmental stage, the industry’s challenges require that hands be on the deck to achieve an efficient and effective electric power supply industry that we desire for our economic development,” Garba said.
He explained the objectives of the PSRP include the power sector’s financial viability, improve electricity supply reliability to meet the growing demand, strengthen the sector’s institutional framework, implement policies that promote and encourage investors’ confidence, and institutionalise a contract-based electricity industry.
Speaking further, Garba explained that under the National Mass Metering Programme (NMMP), which is one of the policy interventions of the government, about 1 million meters were installed at phase zero of the NMMP.
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“Phase one of the NMMP, which envisages the installation of 4 million meters, will start as soon as the procurement process is concluded.
“In addition, distribution companies have submitted performance improvement plans to NERC which commits them to certain minimum service delivery levels and progressive improvement in service quality and standards,” he said.
In his presentation, Belije Madu, who represented the PSRP Secretariat, said ensuring continued improvement in the Nigerian power sector performance will be central to unlocking increased economic growth, particularly in the non-oil sectors of manufacturing and services.
According to him, the PSRP is aimed to improve power supply, restore financial viability and enhance accountability of Nigeria’s power sector through service delivery and reducing losses on the basis of approval and enforcement of Discos’ Performance Improvement Plans.
“PSRP includes a set of measures to ensure that a minimum 4,500 MWh/hour of electricity is supplied to the distribution grid from 2022. This is the minimum level of supply necessary for grid stability and the reduction of system outages.
“The PSRP will ensure implementation of a fiscally transparent Financing Plan to cover sector shortfalls during the transition to cost recovery,” he said.
He explained that the programme will promote the implementation of arrangements to ensure Discos continue operating and rendering service to Nigerians.
According to him, there will be adjustment in the electricity pricing in a socially sustainable manner, with the pricing made to ensure affordability for poorer households and unmetered home consumers connected to the grid.
“In the event any Disco has issues, PSP will ensure the Disco continue operating. The plans will also ensure that qualified specialists are hired to temporarily oversee the Disco operations.
“Electricity pricing is adjusted consistent with the PSRP Financing Plan, including measures which protect the poor.
“Discos are mandated to keep their payment obligations. The PSRP supports Discos to meet their payment obligations to NBET and TCN,” he said.
