USAID, FG sign MOU to invest N115bn in Nigeria’s Power Sector
The United States Agency for International Development (USAID) and the Federal Ministry of Power signed a memorandum of understanding on Wednesday to secure Nigeria’s commitment to electricity sector reforms, market transparency, liquidity, and expanding access to affordable power.
The MOU as announced this in a statement issued in Abuja by the power ministry was signed by USAID/Nigeria Mission Director, Melissa Jones, and the Permanent Secretary, Federal Ministry of Power, Mahmuda Mamman, to support the implementation of an N115.2bn US government grant-funded technical assistance programme, as well as to support power sector development and reforms in Nigeria.
USAID/Nigeria Mission Director, Melissa Jones, restated the US government’s commitment to advancing electrification in Nigeria.
Jones said, “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.”
Meanwhile, the US government’s Power Africa Coordinator, Richard Nelson, observed the signing ceremony, during his first official visit to Nigeria, adding that “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, commended USAID for its continued support, highlighting the collaboration’s transformative potential.
Adelabu said “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.”
The statement highlighted that USAID works to mitigate these challenges through the Power Africa Initiative, a US government-led partnership that harnesses the collective resources of public and private sectors to double access to electricity in sub-Saharan Africa.
It stated further that it is through the Power Africa Initiative, over 33 million Nigerians have been connected, about $4.5bn have been mobilised 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 added.
So far, more than 85 million Nigerians have no access to grid power, and many have suffered from unreliable and epileptic power supply and some made do with expensive, emission-intensive petrol and diesel backup generators for their homes and businesses.
