USAID Pledges N115.2Bn To Support Nigeria’s Electricity Reforms

4 Min Read

The United States Agency for International Development (USAID) and the Federal Government have sealed a Memorandum of Understanding (MoU) to secure the government of Nigeria’s commitment to electricity sector reforms, market transparency, liquidity, and expansion of Nigerians’ access to sustainable, reliable, and affordable electricity

The MoU, which was signed by USAID/Nigeria Mission Director, Melissa Jones, and the Permanent Secretary Ministry of Power, Mahmuda Mamman, would support the effective implementation of a N115.2 billion U.S. government grant-funded technical assistance programme initiated to support power sector development and reforms in Nigeria.

Available data on Nigeria’s power situation shows that more than 85 million Nigerians have no access to grid power, and many have suffered from unreliable power supply, thereby compelling many Nigerian families and businesses to depend on expensive, emission-intensive gasoline and diesel backup generators.

Speaking during the MoU signing ceremony, the USAID/Nigeria Mission Director restated the U.S government’s commitment to advancing electrification in Nigeria.

She said: “Today’s goal – 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–is laudable and timely.”

In his remarks, the U.S. Government’s Power Africa Coordinator, Richard Nelson, who witnessed the signing ceremony during his first official visit to Nigeria, said: “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.”

Also, the Minister of Power, Adebayo Adelabu, thanked the USAID’s continued support for Nigeria in view of the transformative potential.

He enthused: “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.”

The USAID has been working to mitigate these challenges through the Power Africa Initiative (PAI), a U.S. government-led partnership that harnesses the collective resources of public and private sectors to double access to electricity in sub-Saharan Africa.

Through the initiative, over 33 million Nigerians had been connected to power and about $4.5 billion had been mobilized for on-grid and off-grid power projects in Nigeria even as over 200 private companies in the off-grid sector had received assistance.

By its design, the PAI will strengthen policy frameworks, enhance regulatory capacities, and encourage private sector participation, ultimately driving the nation towards its clean energy and net zero carbon emissions targets.

Photo Caption

L-R: Director, Planning, Research and Statistics, Mrs Bosede Olaniyi; Permanent Secretary, Federal Ministry of Power, Alhaji Mahmuda Mamman; Minister of Power, Chief Adebayo Adelabu; Mission Director, United States Agency for International Development (USAID), Melissa Jones and Coordinator, Power Africa, Richard Nelson at the signing of a Memorandum of Understanding (MoU) between the Federal Ministry of Power and USAID in Abuja

Share This Article