Olufemi Adeyemi 


United States Agency for International Development and the Federal Ministry of Power signed a memorandum of understanding on Wednesday to ensure Nigeria’s commitment to electricity sector reforms, market transparency, liquidity, and expanding access to affordable electricity.

The Memorandum o” Understanding (MOU) was signed by the USAID/Nigeria Mission Director, Melissa Jones, and the Permanent Secretary of the Federal Ministry of Power, Mahmuda Mamman. The purpose of the MOU is to support the implementation of a technical assistance program funded by a US government grant of N115.2 billion. The program aims to support the development and reforms of the power sector in Nigeria. This announcement was made in a joint statement issued by the power ministry in Abuja.

In Nigeria, over 85 million citizens lack access to reliable grid power, resulting in a significant dependence on costly and environmentally harmful petrol and diesel backup generators for households and businesses.

The Nigerian power sector’s persistent challenges hinder industrial expansion, economic competitiveness, rural development, healthcare and educational performance, and the country's overall economic growth and development.

Jones reaffirmed the United States government’s dedication to promoting the advancement of electrification initiatives within Nigeria.

She said, “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.”

During his inaugural official visit to Nigeria, Richard Nelson, the Power Africa Coordinator for the United States government, witnessed the signing ceremony.

“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,” he stated.

Minister of Power Adebayo Adelabu conveyed his appreciation for USAID’s ongoing support, underscoring the potential of their collaboration to drive transformative change.

“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.

USAID endeavors to alleviate these challenges through the Power Africa Initiative, a collaborative effort spearheaded by the US government. This initiative leverages the combined resources of public and private sectors with the ambitious goal of doubling electricity access in sub-Saharan Africa.

Through the Power Africa Initiative, substantial advancements have been achieved in Nigeria. Over 33 million individuals have acquired access to electricity, approximately $4.5 billion has been secured for on-grid and off-grid power projects, and assistance has been provided to more than 200 private companies operating in the off-grid sector.

“This initiative will fortify policy frameworks, augment regulatory capabilities, and incentivize private sector engagement, ultimately propelling the nation toward its clean energy and net zero carbon emission objectives.

“The ministry is committed to ensuring that these interventions provide tangible benefits to all Nigerians, fostering economic growth and sustainable development,” it stated.