The U.S. Agency for International Development (USAID) and the Federal Ministry of Power have signed a N115.2 billion Memorandum of Understanding (MOU) to secure the Government of Nigeria’s commitment to electricity sector reforms, market transparency, liquidity, and expanding Nigerians’ access to sustainable, reliable, and affordable power.
The MOU signed by USAID/Nigeria Mission Director Melissa Jones and the Permanent Secretary Ministry of Power Mahmuda Mamman, will support the effective implementation of a 115.2 billion naira U.S. government grant-funded technical assistance program intended to support power sector development and reforms in Nigeria.
More than 85 million Nigerians have no access to grid power, and many have suffered from unreliable power supply. Given these challenges, many Nigerian families and businesses depend on expensive, emission-intensive gasoline and diesel backup generators.
The Nigeria power sector’s long-standing challenges impair industrial growth and economic competitiveness, rural development, health and education sector performance and the nation’s overall economic growth and development.
Director Jones reiterated the United States government’s commitment to advancing electrification in Nigeria.
She said: “Today’s goal –to strengthen collaboration between USAID and the Federal Government of Nigeria and to provide a framework for our partnerships with other key actors, including state and local governments, electricity generation and distribution sectors and the off-grid sector–is laudable and timely.”
The U.S. Government’s Power Africa Coordinator Richard Nelson observed the signing ceremony, during his first official visit to Nigeria.
Mr. Nelson noted: “Nigeria is at the core of Power Africa’s strategy. I look forward to elevating our partnership to advance Nigeria’s progress towards our shared goal of ensuring access to reliable, sustainable affordable power for all.”
The Minister of Power, Adebayo Adelabu, expressed gratitude for USAID’s continued support, emphasizing the collaboration’s transformative potential.
He stated: “This partnership with USAID is a significant milestone in the journey towards achieving a sustainable and reliable electricity supply for all Nigerians. Together, we will tackle the longstanding challenges in the power sector, ensuring transparency, enhancing market liquidity, and accelerating our transition to clean energy solutions.”
USAID works to mitigate these challenges through the Power Africa Initiative, a U.S. government-led partnership that harnesses the collective resources of public and private sectors to double access to electricity in sub-Saharan Africa.
Through the Power Africa Initiative, over 33 million Nigerians have been connected, about 4.5 billion dollars have been mobilized for on-grid and off-grid power projects in Nigeria, and over 200 private companies in the off-grid sector have received assistance.
This initiative will strengthen policy frameworks, enhance regulatory capacities, and encourage private sector participation, ultimately driving the nation towards its clean energy and net zero carbon emissions targets.
The Ministry is committed to ensuring these interventions deliver tangible benefits to all Nigerians, promoting economic growth and sustainable development.
