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.