USAID and Nigeria sign MoU for power sector reform

USAID and Nigeria sign MoU for power sector reform

The United States Agency for International Development (USAID) and the Federal Ministry of Power of Nigeria on July 10 2024,signed a memorandum of understanding (MOU) to advance electricity sector reforms, market transparency, and access to sustainable, reliable, and affordable power. USAID/Nigeria Mission Director Melissa A. Jones and Permanent Secretary of the Ministry of Power Mahmuda Mamman signed the MOU, launching a ₦115.2 billion ($75 million) U.S. government grant-funded technical assistance program for Nigeria’s power sector development.

Over 85 million Nigerians currently lack grid power access, with many others facing unreliable supply, forcing reliance on costly and emission-intensive gasoline and diesel generators. Director Jones emphasized the U.S. government’s commitment to advancing electrification in Nigeria, highlighting the importance of collaboration with the Federal Government and other key actors, including state and local governments, the electricity generation and distribution sectors, and the off-grid sector.

Power Africa Coordinator Richard Nelson, on 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.”

Minister of Power Adebayo Adelabu expressed gratitude for USAID’s support, emphasizing the partnership’s potential to transform Nigeria’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.

USAID’s Power Africa Initiative, a U.S. government-led partnership, aims to double electricity access in sub-Saharan Africa by leveraging public and private sector resources. In Nigeria, the initiative has connected over 33 million people to power, mobilized approximately $4.5 billion for power projects, and assisted over 200 private companies in the off-grid sector.

This new initiative seeks 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 these interventions deliver tangible benefits, promoting economic growth and sustainable development for all Nigerians.

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