The Ministry of Power and the United States Agency for International Development (USAID) have signed a memorandum of understanding (MoU) worth N115.2 billion ($75 million) to support reforms in Nigeria’s electricity sector.
According to a statement released on Wednesday, the MoU aims to enhance market transparency and expand access to sustainable, reliable, and affordable power for Nigerians.
The agreement was signed by Melissa Jones, USAID’s Nigeria mission director, and Mahmuda Mamman, permanent secretary of the Ministry of Power.
“This agreement will enable the implementation of a ₦115.2 billion (approximately $75 million) U.S. government grant-funded technical assistance program for power sector development and reforms in Nigeria,” the statement said. It highlighted that over 85 million Nigerians currently lack access to grid power, and many others face unreliable supply.
USAID pointed out that these challenges force many Nigerian families and businesses to rely on expensive and emission-intensive petrol and diesel backup generators.
“USAID addresses these challenges through the Power Africa Initiative, a U.S. government-led partnership that leverages public and private sector resources to double electricity access in sub-Saharan Africa,” the agency stated.
The initiative has connected over 33 million Nigerians to power, mobilized approximately $4.5 billion for on-grid and off-grid power projects in Nigeria, and assisted over 200 private companies in the off-grid sector.
This new initiative aims to strengthen policy frameworks, enhance regulatory capacities, and encourage private sector participation, driving Nigeria towards its clean energy and net-zero carbon emissions targets, according to USAID.
The Ministry of Power is committed to ensuring these interventions deliver tangible benefits to all Nigerians, promoting economic growth and sustainable development.
‘US GOVERNMENT DEDICATED TO ADVANCING ELECTRIFICATION’
Jones affirmed the US government’s commitment to advancing electrification in Nigeria.
“Today’s goal is to strengthen collaboration between USAID and the Federal Government of Nigeria and provide a framework for partnerships with other key actors, including state and local governments, electricity generation and distribution sectors, and the off-grid sector,” she said.
Richard Nelson, Power Africa coordinator, emphasized Nigeria’s central role in 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,” Nelson said.
Adebayo Adelabu, Minister of Power, expressed gratitude for USAID’s support, highlighting the partnership’s potential to transform Nigeria’s power sector.
“This collaboration with USAID is a significant milestone towards achieving sustainable and reliable electricity supply for all Nigerians,” he said.
Adelabu also noted that collaboration can resolve longstanding challenges, ensure transparency, enhance market liquidity, and accelerate the transition to clean energy solutions.
