The Federal Government of Nigeria has initiated a strategic redirection of a $730 million World Bank loan, originally earmarked for the Power Sector Recovery Programme (PSRP), to now focus exclusively on the recovery and stabilization of the nation’s power distribution sector. This policy shift follows the cancellation of original PSRP objectives after Nigeria failed to meet specific conditions required to access an additional $750 million tranche, leading authorities to pivot the existing funds toward urgent infrastructure needs. The revised programme prioritizes the expansion of metering for consumers to broaden the revenue base of Distribution Companies (DisCos) and the comprehensive reinforcement of distribution networks, including the upgrade of substations and the replacement of aging transformers. By focusing on these critical areas, the government aims to enhance electricity supply reliability and improve the financial sustainability of the entire power value chain. Officials have confirmed that Nigeria remains the beneficiary of the facility and that both the government and the World Bank have aligned on this new roadmap to ensure the funds effectively tackle current market challenges and provide tangible improvements in electricity delivery to households and businesses across the country.
