World Bank has offered a second phase of PSRP, a comprehensive programme of policy, legal, regulatory, operational and financial interventions aimed at restoring service efficiency and long-term viability of the power sector, which would be implemented through 2021.
The programme would also improve transparency, service delivery and re-establish investor confidence in the sector, and equally accelerate electricity access in the country especially through off-grid public private partnerships.
World Bank had held meetings to assess the level of progress Nigeria had recorded in implementing the first phase of the PSRP, and made the following statement: “The federal government of Nigeria clarified progress made to date and next steps on key components of the PSRP. The federal government has prepared a financing plan to ensure financial sustainability of the power sector and included it in the Medium-Term Expenditure Framework and Fiscal Strategy Paper submitted to the National Assembly in October 2017.”
The statement further noted that, “The financing plan will be monitored regularly and incorporate contingencies should the sector shortfall deviate from the base case assumptions until retail tariffs are adjusted in line with improved service delivery to attain cost recovery by 2021.”
The PSRP, is designed to control challenges having to do with costs and carefully manage contingent liabilities to ensure cost-reflective and affordable electricity tariffs.
The statement also revealed it was agreed that existing generation infrastructure assets will need to be optimised before the sector assumes new financial obligations.
Parties to the programme expressed their desire to see it enjoy the support of all arms of government including the National Assembly.
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