FG, USAID sign N115bn MoU to support power sector reforms

The ministry of power and the United States Agency for International Development (USAID) have signed a N115.2 billion ($75 million) memorandum of understanding (MoU) to support electricity sector reforms.

According to a statement on Wednesday, the MoU was signed to advance market transparency as well as expand access to sustainable, reliable, and affordable power for Nigerians.

Melissa Jones, USAID’s Nigeria mission director, and Mahmuda Mamman, permanent secretary of the ministry of power, signed the agreement on behalf of both parties.

“This agreement will facilitate the implementation of a ₦115.2 billion (approximately $75 million) U.S. government grant-funded technical assistance program for power sector development and reforms in Nigeria,” the statement reads.

“Currently, over 85 million Nigerians lack access to grid power, while many others face unreliable supply.” 

USAID said these challenges force many Nigerian families and businesses to rely on costly, emission-intensive petrol and diesel backup generators.

“USAID addresses these challenges through the Power Africa Initiative, a U.S. government-led partnership that leverages public and private sector resources to double electricity access in sub-Saharan Africa,” the agency said.

“Through this initiative, over 33 million Nigerians have been connected to power, approximately $4.5 billion has been mobilized for on-grid and off-grid power projects in Nigeria, and over 200 private companies in the off-grid sector have received assistance.

“This 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.”

According to USAID, the power ministry is dedicated to ensuring these interventions deliver tangible benefits to all Nigerians, promoting economic growth and sustainable development.

‘US GOVERNMENT DEDICATED TO ADVANCING ELECTRIFICATION’

Jones said the US government is committed to advancing electrification 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. 

Also speaking, Richard Nelson, Power Africa coordinator, 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,” Nelson said.

Adebayo Adelabu, minister of power, expressed gratitude for USAID’s support, emphasising 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,” he said.

Adelabu said collaboration can resolve the longstanding challenges, ensuring transparency, enhancing market liquidity, and accelerating the transition to clean energy solutions.