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The U.S. Agency for International Development (USAID) and Nigeria’s Federal Ministry of Power have signed a memorandum of understanding (MOU) to support crucial reforms in the country’s electricity sector. The MOU was signed by USAID/Nigeria Mission Director Melissa A. Jones and the Permanent Secretary of the Ministry of Power, Mahmuda Mamman, marking a significant step toward improving market transparency and expanding access to sustainable, reliable, and affordable power for Nigerians.
The agreement will facilitate the implementation of a ?115.2 billion (approximately $75 million) U.S. government-funded technical assistance program designed to enhance power sector development and reforms in Nigeria. This initiative is particularly timely, as over 85 million Nigerians currently lack access to grid power, and many more experience unreliable electricity supply, forcing families and businesses to rely on costly, emission-intensive backup generators.
During the signing ceremony, Director Jones emphasized the U.S. government’s dedication to advancing electrification efforts 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.
Power Africa Coordinator Richard Nelson, who was also present at the ceremony, highlighted the strategic importance of Nigeria in the Power Africa Initiative. “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,” Nelson noted.
Nigeria’s Minister of Power, Adebayo Adelabu, expressed gratitude for USAID’s support, underscoring the partnership’s potential to transform the country’s power sector. “This collaboration with USAID is a significant milestone towards achieving sustainable and reliable electricity supply for all Nigerians. Together, we will address longstanding challenges, ensure transparency, enhance market liquidity, and accelerate our transition to clean energy solutions,” he stated.
Through the Power Africa Initiative, USAID has already helped connect over 33 million Nigerians to power, mobilized approximately $4.5 billion for power projects, and provided support to over 200 private companies in the off-grid sector. The 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 of Power is committed to ensuring these interventions deliver tangible benefits to all Nigerians, promoting economic growth and sustainable development. |