In a significant move to reform Nigeria’s electricity sector, the Federal Ministry of Power and the United States Agency for International Development (USAID) have signed a ₦115 billion Memorandum of Understanding (MoU).
This agreement aims to enhance market transparency, increase liquidity, and expand access to affordable power across the country.
Announced in a joint statement from Abuja on Wednesday, the MoU was signed by USAID/Nigeria Mission Director Melissa Jones and the Permanent Secretary of the Federal Ministry of Power, Mahmuda Mamman.
The agreement supports the implementation of a ₦115.2 billion US government grant-funded technical assistance program designed to aid the development and reform of Nigeria’s power sector.
Melissa Jones emphasized the US government’s commitment to advancing electrification in Nigeria. He stated:
READ ALSO:
NATO Deploys F-16 Jets to Ukraine, Commits to $43 Billion in Military Aid
“Today’s goal is to strengthen collaboration between USAID and the Federal Government of Nigeria. This framework will enable partnerships with key stakeholders, including state and local governments, electricity generation and distribution sectors, and the off-grid sector. It is both laudable and timely.”
Minister of Power, Adebayo Adelabu, expressed his gratitude for USAID’s continued support, highlighting the transformative potential of this collaboration.
“This partnership with USAID marks a significant milestone in our journey towards achieving a sustainable and reliable electricity supply for all Nigerians. Together, we will tackle longstanding challenges in the power sector, ensure transparency, enhance market liquidity, and accelerate our transition to clean energy solutions,” Adelabu stated.
USAID’s efforts to mitigate challenges in Nigeria’s power sector are part of the broader Power Africa Initiative, a US government-led partnership. This initiative leverages the resources of both public and private sectors to double access to electricity across sub-Saharan Africa.
Through Power Africa, over 33 million Nigerians have gained access to electricity, approximately $4.5 billion has been mobilized for on-grid and off-grid power projects, and over 200 private companies in the off-grid sector have received assistance.
“This initiative aims to strengthen policy frameworks, enhance regulatory capacities, and encourage private sector participation,” the statement continued.
“Ultimately, it will drive Nigeria towards its clean energy and net-zero carbon emissions targets. The ministry is committed to ensuring these interventions deliver tangible benefits to all Nigerians, promoting economic growth and sustainable development.”
Richard Nelson, the US government’s Power Africa Coordinator, also underscored the importance of this partnership.
READ ALSO:
Elon Musk Reveals Promising Results of Neuralink Brain Chip in First Patient
“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, and affordable power for all.”
The MoU signifies a robust and strategic effort to address Nigeria’s power challenges comprehensively. It represents a critical step in fostering a sustainable energy future, not only benefiting the current population but also laying the groundwork for future generations.
This collaboration between the Federal Ministry of Power and USAID is poised to catalyze significant improvements in Nigeria’s electricity sector, driving economic growth and fostering sustainable development.