The Federal Ministry of Power and the United States Agency for International Development (USAID) have signed a Memorandum of Understanding (MoU) worth ₦115 billion aimed at bolstering Nigeria’s commitment to electricity sector reforms, enhancing market transparency, improving liquidity, and expanding access to affordable power.
This collaboration was announced in a statement issued by the power ministry in Abuja on Wednesday.
The MoU, signed by USAID/Nigeria Mission Director Melissa Jones and the Permanent Secretary of the Federal Ministry of Power Mahmuda Mamman, marks the implementation of a US government grant-funded technical assistance program. This program is designed to support the development and reforms in Nigeria’s power sector.
Melissa Jones emphasized the US government’s dedication to advancing electrification efforts in Nigeria, highlighting the importance of strengthening collaboration between USAID and the Federal Government, as well as engaging with other key stakeholders including state and local governments, electricity generation and distribution sectors, and the off-grid sector.
Minister of Power Adebayo Adelabu expressed gratitude for USAID’s continuous support, underscoring the transformative potential of this partnership. He emphasized that the collaboration aims to address longstanding challenges in the power sector, ensuring transparency, enhancing market liquidity, and accelerating the adoption of clean energy solutions.
The statement further outlined that USAID’s efforts are part of the Power Africa Initiative, a US government-led partnership aimed at doubling access to electricity in sub-Saharan Africa. In Nigeria, this initiative has already connected over 33 million people, mobilized approximately $4.5 billion for on-grid and off-grid power projects, and supported more than 200 private companies in the off-grid sector.
The initiative is set to strengthen policy frameworks, enhance regulatory capacities, and encourage private sector participation, all aimed at driving Nigeria towards achieving its clean energy and net zero carbon emissions targets. The Federal Ministry of Power affirmed its commitment to ensuring that these interventions deliver tangible benefits to all Nigerians, promoting economic growth and sustainable development.
Richard Nelson, the US government’s Power Africa Coordinator, highlighted Nigeria’s pivotal role in Power Africa’s strategy and expressed optimism about advancing the partnership to further Nigeria’s progress in ensuring reliable, sustainable, and affordable power for all.