USAID and Nigeria’s Federal Ministry of Power Sign MOU to Advance Electricity Sector Reforms

In a significant move aimed at bolstering Nigeria’s electricity sector, the United States Agency for International Development (USAID) and the Federal Ministry of Power have signed a memorandum of understanding (MOU). This agreement, signed on Wednesday, outlines Nigeria’s commitment to electricity sector reforms, market transparency, liquidity improvement, and expanding access to affordable power.

The MOU, valued at N115.2 billion, represents a US government grant-funded technical assistance program aimed at supporting comprehensive power sector development and reforms in Nigeria. Melissa Jones, the Mission Director of USAID/Nigeria, and Mahmuda Mamman, the Permanent Secretary of the Federal Ministry of Power, formalized the agreement in Abuja, as announced by the power ministry.

With more than 85 million Nigerians lacking access to grid power and many enduring unreliable supply, the country heavily relies on costly petrol and diesel backup generators. These challenges have long hindered industrial growth, economic competitiveness, and overall development across sectors like health and education.

Jones underscored the US government’s dedication to advancing electrification efforts in Nigeria, emphasizing the importance of collaboration with various stakeholders, including state and local governments, electricity generation and distribution sectors, and off-grid entities.

Richard Nelson, the US government’s Power Africa Coordinator, highlighted Nigeria’s strategic importance within the Power Africa initiative, expressing optimism about enhancing the partnership to achieve universal access to reliable and sustainable electricity.

Minister of Power, Adebayo Adelabu, expressed gratitude for USAID’s ongoing support, recognizing the transformative potential of this collaboration. He emphasized the partnership’s role in addressing longstanding challenges in the power sector, promoting transparency, improving market liquidity, and accelerating the adoption of clean energy solutions.

Through the Power Africa Initiative, a US government-led partnership, significant milestones have been achieved in Nigeria, including connecting over 33 million people to electricity, mobilizing approximately $4.5 billion for on-grid and off-grid projects, and assisting more than 200 private companies in the off-grid sector.

The initiative aims to strengthen policy frameworks, enhance regulatory capacities, and encourage private sector participation, ultimately driving Nigeria towards its clean energy and net-zero carbon emissions goals. The Ministry of Power affirmed its commitment to ensuring these interventions deliver tangible benefits to all Nigerians, fostering economic growth and sustainable development.

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