USAID and Nigeria’s Power Ministry Sign MOU to Enhance Electricity Sector Reforms

In a significant move to advance 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). The agreement, finalized on Wednesday, underscores Nigeria’s commitment to electricity sector reforms, market transparency, liquidity, and expanding access to affordable power.

The MOU was signed by USAID/Nigeria Mission Director Melissa Jones and the Permanent Secretary of the Federal Ministry of Power, Mahmuda Mamman. This partnership aims to support the implementation of a N115.2 billion US government grant-funded technical assistance programme designed to bolster power sector development and reforms in Nigeria. This development was announced in a statement issued by the Ministry of Power in Abuja.

With over 85 million Nigerians lacking access to grid power and many suffering from unreliable electricity supply, the agreement comes at a crucial time. Nigerian families and businesses frequently rely on costly, emission-intensive petrol and diesel generators to meet their power needs, highlighting the pressing need for sustainable solutions.

Melissa Jones emphasized the US government’s dedication to enhancing 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.”

Richard Nelson, the US government’s Power Africa Coordinator, attended the signing ceremony during his first official visit to Nigeria. He remarked, “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 his gratitude for USAID’s ongoing support, highlighting the transformative potential of this collaboration. “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,” he stated.

The statement also highlighted USAID’s efforts through the Power Africa Initiative, a US government-led partnership that leverages resources from both public and private sectors to double access to electricity in sub-Saharan Africa. Through this initiative, over 33 million Nigerians have gained access to electricity, and approximately $4.5 billion has been mobilized for on-grid and off-grid power projects. Additionally, over 200 private companies in the off-grid sector have received assistance.

The 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, fostering economic growth and sustainable development.

This MOU marks a pivotal step in addressing Nigeria’s power sector challenges and aligns with broader efforts to improve the country’s industrial growth, economic competitiveness, and overall development.