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FG, USAID Sign N115bn MoU to Transform Nigeria’s Power Sector

The Federal Government of Nigeria and the United States Agency for International Development (USAID) have signed a memorandum of understanding (MoU) worth N115.2 billion (approximately $75 million). 

PLATFORM TIMES reports that the  agreement aims to advance market transparency, and expand access to sustainable, reliable, and affordable power for millions of Nigerians.

The signing ceremony, which took place on Wednesday, featured key representatives from both sides: Melissa Jones, USAID’s Nigeria mission director, and Mahmuda Mamman, the permanent secretary of the ministry of power, who signed the MoU on behalf of their respective organisations.

The statement read “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.”

 

Recall that Nigeria faces significant challenges in its power sector, with over 85 million citizens lacking access to grid power and many others experiencing unreliable electricity supply. 

These issues force numerous Nigerian families and businesses to depend on expensive and polluting petrol and diesel backup generators.

USAID’s involvement in addressing these power challenges is part of the broader Power Africa Initiative, a U.S. government-led partnership aimed at doubling electricity access in sub-Saharan Africa.

According to USAID, this initiative has already made substantial impacts: over 33 million Nigerians have been connected to power, approximately $4.5 billion has been mobilised for both on-grid and off-grid power projects in Nigeria, and more than 200 private companies in the off-grid sector have received assistance.

PLATFORM TIMES gathered that the new MoU is designed to further strengthen policy frameworks, enhance regulatory capacities, and encourage private sector participation in Nigeria’s power sector. 

These efforts are in line with Nigeria’s goals of achieving clean energy and net-zero carbon emissions targets. 

The ministry of power is committed to ensuring these interventions deliver tangible benefits to all Nigerians, promoting economic growth and sustainable development.

Melissa Jones emphasized the U.S. government’s dedication 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.

Richard Nelson, Power Africa coordinator, highlighted Nigeria’s central role in the Power Africa 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 remarked.

Adebayo Adelabu, Nigeria’s minister of power, expressed gratitude for USAID’s support and underscored the potential of this partnership to transform the country’s power sector. 

“This collaboration with USAID is a significant milestone towards achieving sustainable and reliable electricity supply for all Nigerians,” he stated. 

Adelabu added that the collaboration could resolve longstanding challenges in the sector, ensuring transparency, enhancing market liquidity, and accelerating the transition to clean energy solutions.

 

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