The Power Sector Recovery Programme (PSRP) is a comprehensive programme of policy, legal, regulatory, operational and �nancial interventions designed to restore service efficiency and long-term power sector viability. Set to be implemented through 2021, the intervention measures are aimed at improving transparency, service delivery and re-establishing investor con�dence, and ultimately, sustainable growth in the Nigeria Electricity Supply Industry. A World Bank mission to Abuja led by Riccardo Puliti, World Bank Senior Director for Energy and Extractive Industries, took place from November 27th to December 6th, 2017 to assess progress in implementing the Power Sector Recovery Programme (PSRP).

The World Bank mission comprised of high-level consultations with the Federal Government of Nigeria, notably His Excellency, the Vice President, Honourable Minister of Power, Works and Housing, Honourable Minister of Finance, power sector operatives and key stakeholders in the power sector. The PSRP Implementation Monitoring Team (PSRP IMT), constituted of technical specialists charged with supervising and driving implementation, participated in all the meetings.

Key outcomes from the consultations inc lude:Ÿ Finalization of the PSRP �nancing plan to ensure

successful Programme delivery and included in the Medium Term Expenditure Framework and the Fiscal Strategy Paper.

Ÿ Consensus on the “Market Reset” process being led by Nigerian Electricity Regulatory Commission (NERC) to rede�ne the sector revenue requirement based on new performance parameters and detailed investment plans. The market reset will be implemented rigorously, transparently and in a highly consultative manner.

Ÿ Progress on the PSRP implementation was thoroughly evaluated by the World Bank delegation and its early a c t i o n s w e r e a s s e s s e d , w e l l m o n i t o r e d a n d comprehensive. The World Bank is committed to assisting t h e F e d e r a l G o v e r n m e n t w i t h P r o g r a m m e implementation by working closely with the PSRP Implementation Monitoring Team, which reports directly to His Excellency, the Vice President of Nigeria.

Ÿ The World Bank US$ 1 billion Performance Based Loan (PBL) earmarked to fund the Programme is now being prepared for �nal approvals based on the World Bank mission �ndings and the Federal Government’s progress on implementation. The Federal Government and the World Bank Group agreed on the necessary next steps to present the PBL to the World Bank's Board of Executive Directors for their consideration.

PSRP GETS STRONG ENDORSEMENT FROM WORLD BANK DELEGATION

H.E Prof. Yemi Osinbajo, SAN, Vice President of the Federal Republic of Nigeria; H.E Babatunde Raji Fashola, SAN, Minister of Power, Works and Housing; H.M Mrs Kemi Adeosun, Minister of Finance and Mrs Damilola Ogunbiyi, PSRP Coordinator with the World Bank mission from Washington DC after consultations on the Power Sector Recovery Programme.

NEWSLETTER VOL. 1, ISSUE 1, JAN 2018A quarterly newsletter of the PSRP Implementation Monitoring Team

Riccardo Puliti, World Bank Senior Director for Energy and Extractive Industries with H.E Prof. Yemi Osinbajo, SAN, Vice President of the Federal Republic of Nigeria.

“This Administration is completely committed to ensuring that we ful�ll our obligations in this partnership with the World Bank. We believe that the PSRP is the clearest pathway to reform the power sector and its success is contingent on a strict adherence to performance and Programme implementation monitoring which I will continue to give a priority from my office.“ - H.E. Yemi Osinbajo, Vice President of the Federal Republic of Nigeria

“The Federal Government is committed to addressing the challenges in the power sector as part of efforts towards achieving economic recovery.”- H.E. Babatunde Fashola SAN, Minister for Power, Works and Housing

“It (PSRP) is an intervention that we have been working on in collaboration with the Federal Ministry of Power, Works and Housing and the World Bank. We are very con�dent that this laudable and vital programme will make a fundamental difference in the economy in particular and the country as a whole.“ - H.M. Mrs. Kemi Adeosun, Minister of Finance

"The discussions we had demonstrated that there is strong momentum in the power sector and Government commitment to taking the critical next steps that will allow us to present this loan to our Board of Executive Directors.” -Riccardo Puliti, World Bank Senior Director for Energy and Extractive Industries

STAKEHOLDER CONSULTATIONS DRIVE COMMENCEMENT PHASE OF PSRP IMPLEMENTATION MONITORINGI. Media workshopAs part of the beginning phase of the Power Sector Recovery Programme implementation, the Power Sector Communications Team (PSCT) in collaboration with the Ministry of Power, Works and Housing, and the PSRP IMT organized a media engagement workshop. It was held on November 15th, 2017 to inform energy reporters of the PSRP core objectives and activities to facilitate accurate reportage and knowledge building. The workshop was attended by the Honourable Minister of Power, Works and Housing; Honourable Ministers of State I & II of Power, Works and Housing; Permanent Secretar y and power agency executives who participated in the question and answer session with the media.

II. Interactive sessions with investors, sector participants and private operators The International Finance Corporation (IFC) facilitated its second interactive session with investors and sector participants on November 27th, 2017. During the consultation, World Bank representatives discussed the key PSRP interventions with a focus on the �nancing plan, market reset, least cost generation plan and DisCo performance. Additional PSRP consultations took place at the December Monthly Operators Meeting at Geregu Power Plant with private sector operatives and agency executives. At both sessions, participants were assured that PSRP objectives were for the DisCos and GenCos to attain their full revenue requirements supported by improved sector governance and customer service improvements.

H.E Babatunde Raji Fashola, SAN; Minister of Power, Works and Housing speaking on “The Federal Government Commitment to the Power Sector Recovery Programme (PSRP)” during a media engagement workshop at Power House, Abuja on November 15, 2017.

Participants at the 22nd Power Sector Operators Meeting hosted by the Kogi State Government and Geregu Power PLC on December 11, 2017 where PSRP objectives were discussed with DisCo, GenCo and GasCo executives.

The �nancial sustainability of the power sector is at the core of the PSRP. The �nancing plan re�ects the Federal Government of Nigeria's intent to alleviate the de�cits in the sector. It sets out a plan that forms a base-case, now widely shared with its funding partners and has been re�ected in the Medium-Term Expenditure Framework, Fiscal Strategy paper and national budget. The Federal Government has committed to ensuring sector companies receive their ful l revenue requirement as per NERC's Multi-Year Tariff Order. To develop and manage the �nancing plan, the Government has established a multi-agency team,

which consists of representatives from NERC, NBET, the Ministry of Finance, the Budget Office and the Debt Management Office. This team has compiled a comprehensive �nancing plan to address both the historical and ongoing tariff shortfalls as the market transitions to appropriate and sustainable tariffs.

The �nancing plan will be updated regularly throughout the PSRP implementation, as macro economic and sectoral parameters underlying the plan change.

PSRP FINANCING PLAN ESTABLISHED AND FULLY FUNDED

72%Believe that lack of power affectsquality of education and ease ofdoing business

55%

29%

15%

Believe that power is not beingmanaged efficiently

Are aware of the ongoing reforms in the power sector

Know about the efforts of the PSRP

96%

76%

64%

62%

Approve of PSRP objectives

Believe that their support isneeded for the success of the PSRP

Agree that theft is a big issue and affects quality

Believe the government is committed to improving power

93%Will pay more if electricity improves

5 Government focused on other development

1 Inefficient management

4Inadequate�nancing

2 Corruption in the sector

3Lack ofprofessionals in the sectorTV Lighting Charging phones

TOP 3 EXPECTATIONS

FROM CONSUMERS

SERVICEUninterrupted electricity supply

Lower tariffs

End to corruption and electricity theftGOVERNANCE & TRANSPARENCY

PRICE

TOP 3 HOUSEHOLD USES OF ELECTRICITY TOP 5 PERCEPTIONS OF SECTOR CHALLENGES

PSRP UNDERTAKES NATIONWIDE SURVEY TO UNDERSTAND POWER NEEDSA nationwide electricity consumer survey was conducted in Lagos (South West), Port Harcourt (South South), Aba (South East), Abuja (North Central), Kano (North West), and Bauchi (North East). It entailed a sample size of over 1,200 respondents in at least 200 households per city and 18 maximum demand users through quantitative and qualitative methods. The survey results provide vital input to the technical content of the programme, strategic and tactical messaging for the upcoming nationwide public sensitization campaign.

PSRP WEBSITE GOES LIVE

The home page is an overview of daily power sector data. It provides quick links to power sector news, project updates and resources for investors and consumers.

A recently upgraded NESISTATS website, an initiative of the P o w e r S e c t o r R e f o r m Programme (PSRP), is aimed at providing information on the Nigerian Electricity Supply Industr y (NESI) in a user-friendly format via a dynamic online platform. For more infor mat ion on N E S I S TAT S , p l e a s e g o t o http://www.mypower.ng

Report a Problem

Here consumers can report electricity issues in their area. This is an easy-to-�ll form with drop down options. DisCo contact information appears as the form is �lled.

Consumers

This interactive map provides statistics on problems reported by users, sorted by DisCos and states. The zoom navigation allows for a detailed view of each state.

Investors

This page provides information for those looking to invest in the Nigerian power sector.

Off-grid electri�cation has been identi�ed in the PSRP as an area which wi l l foster the successful implemention of the programme.

A new collaboration between the Nigerian Rural Electri�cation Agency (REA), the World Bank and the Rocky Mountain Institiute (RMI) has found that Nigeria is the nation that could unlock the nascent minigrid market in Africa. The joint analysis found that developing off-grid alternatives to complement the grid creates a $9.2 billion/year (N3.2 trillion) market opportunity for minigrids and solar home systems that will save $4.4 billion/year (N1.5 billion) for Nigerian homes and businesses.

These �ndings were discussed at the �ve-day “Upscaling Minigrids for Low Cost and Timely Access to Electricity Services” summit successfully hosted by the Nigerian Rural Electri�cation Agency (REA) in conjunction with the World Bank Energy Sector Management Assistance Program (ESMAP), Climate Investment Funds (CIF), and UK Department for International Development (DFID) on the 4th to 8th December 2017. The high-level forum was designed to push action on scaling up minigrids to help countries reach universal energy access by 2030, and was the fourth in a series of successful events on minigrids organized by the global community in the past two

years. This is the �rst time this event held in West Africa. It is a clear indication of the FGN's commitment to support investment in off-grid electri�cation initiatives and to showcase the vast investment opportunties in Nigeria for the development of minigrids and roll out of solar home systems which have a combined potential market of $9.2 billion annually. “I see only opportunities in Nigeria and not challenges, and policies have been developed to help entrepreneurs fast track energy access for underserved populations. I commend the instrumental partnership of the World Bank in developing the power sector and the Rural Electri�cation Agency for developing data to help private developers to reach the communities they need.” - Babatunde Raji Fashola SAN, Honourable Minister of Power, Works and Housing

“Over half of the $350 million earmarked by the World Bank for Nigerian Electri�cation is dedicated to off-grid projects. The Rural Electri�cation Agency (REA) will be the implementing agency for the fund.” - Mr. Mac Cosgrove-Davies, Global Lead Energy, Access, World Bank

“Investors have viewed the market for mini-grids as being too risky, making gaining access to project �nancing rare, and market rate debt expensive. So, I was really thrilled to hear this week that the Rocky Mountain Institute may have cracked the problem with their partners, the Nigerian Rural Electri�cation Agency and the World Bank.” - Richard Branson, Founder, Virgin Group

OPPORTUNITIES IN THE NIGERIAN OFF-GRID ELECTRIFICATION MARKET

Follow us on @PSRPNigeria @PSRPNigeria @PSRPNigeria For more information on the PSRP please visit: www.mypower.ng

Mr Jon Exel, World Bank Rural Electri�cation Project Team Leader; H.E Babatunde Raji Fashola, SAN, Minister of Power, Works and Housing; Mrs Damilola Ogunbiyi. PSRP Coordinator and MD Rural Electri�cation Agency; Mr Mac Cosgrove-Davies, World Bank Country Director's representative (Nigeria); Louis Edozien, Permanent Secretary (Power) and Mr Dafe Akpeneye, Commissioner for Legal, Licensing and Compliance, National Electricity Regulatory Commission (NERC)