The United States Agency for International Development (USAID) and the Federal Ministry of Power signed a memorandum of understanding (MoU) on Wednesday, committing Nigeria to electricity sector reforms, market transparency, liquidity, and expanding access to affordable power.
The MoU was signed by USAID/Nigeria Mission Director Melissa Jones and Permanent Secretary of the Federal Ministry of Power Mahmuda Mamman. It supports the implementation of a ₦115.2 billion US government grant-funded technical assistance program aimed at advancing power sector development and reforms in Nigeria. This was announced in a statement issued by the power ministry in Abuja.
With over 85 million Nigerians lacking access to grid power and many experiencing unreliable electricity supply, Nigerian families and businesses often rely on costly, emission-intensive petrol and diesel generators. These long-standing power sector challenges hinder industrial growth, economic competitiveness, rural development, and the performance of the health and education sectors, ultimately affecting Nigeria’s overall economic growth and development.
Jones reaffirmed the US government’s commitment to advancing electrification in Nigeria, stating, “Today’s goal is 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. It is laudable and timely.”
The signing ceremony was also attended by the US government’s Power Africa Coordinator, Richard Nelson, during his first official visit to Nigeria. Nelson remarked, “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, and affordable power for all.”
Minister of Power Adebayo Adelabu expressed gratitude for USAID’s continued support, emphasizing the partnership’s transformative potential. “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,” he stated.
The statement from the power ministry highlighted USAID’s efforts to mitigate power sector challenges through the Power Africa Initiative, a US government-led partnership that leverages public and private sector resources to double access to electricity in sub-Saharan Africa. Through this initiative, over 33 million Nigerians have gained access to electricity, about $4.5 billion has 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,” the statement concluded.
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Reporting by Naija247news in Lagos, Nigeria.
