Oritsegbubemi Omatseyin
Lagos — The U.S. Agency for International Development, USAID, and the Federal Ministry of Power have signed a Memorandum of Understanding, MoU, to support electricity sector reforms, market transparency and expanded access to sustainable, reliable and affordable power for Nigerians.
The MOU was signed by USAID/Nigeria Mission Director, Melissa Jones and the Permanent Secretary, Federal Ministry of Power, Mahmuda Mamman. This agreement will facilitate the implementation of a ₦115.2 billion (approximately $75 million) U.S. government grant-funded technical assistance programme for power sector development and reforms in Nigeria.
Currently, over 85 million Nigerians lack access to grid power, while many others face unreliable supply. These challenges force many Nigerian families and businesses to rely on expensive, emission-intensive gasoline and diesel backup generators.
The Nigerian power sector’s long-standing challenges impair industrial growth and economic competitiveness, rural development, health and education sector performance, as well as the nation’s overall economic growth and development.
Director Jones emphasised the U.S. 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 US government’s Power Africa Coordinator, Richard Nelson, who observed the signing ceremony during his first official visit to Nigeria 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, emphasising 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 addresses challenges in the power sector 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.
Through this initiative, over 33 million Nigerians have been connected to power, approximately $4.5 billion 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 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.
The Ministry is committed to ensuring that these interventions deliver tangible benefits to all Nigerians, promoting economic growth and sustainable development.
