The US Agency for International Development and Nigeria’s Federal Ministry of Power signed a memorandum of understanding to ensure the country’s commitment to power sector reforms, market transparency, liquidity, and expanding access to affordable power.
The Director of USAID/Nigeria Mission, Melissa Jones and the Permanent Secretary of the Federal Ministry of Power, Mahmuda Mamman signed the Memorandum of Understanding to support the implementation of a N115.2 billion US government grant-funded technical assistance programme aimed at promoting the power sector development and reform in Nigeria.
Both parties announced in a communiqué issued by the power ministry in Abuja, on Wednesday, according to The Punch.
More than 85 million Nigerians lack access to grid power, and many have experienced intermittent power delivery. Given these limitations, many Nigerian families and businesses rely on costly, polluting gasoline and diesel backup generators.
The long-standing issues in Nigeria’s electricity sector impede industrial growth and economic competitiveness, rural development, health and education sector performance, and the country’s overall economic growth and development.
Jones reaffirmed the US government’s commitment to advancing electrification in 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.”
The US government’s Power Africa Coordinator, Richard Nelson, witnessed the signing ceremony, during his first official visit to Nigeria.
“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 said.
The Minister of Power, Adebayo Adelabu, Minister of Power, thanked USAID for its continuing assistance and emphasized the collaboration’s transformative potential.
Adelabu stated “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.”
According to the statement, USAID is working to address these difficulties through the Power Africa Initiative, a US government-led collaboration that leverages the combined resources of the public and private sectors to double access to electricity in Sub-Saharan Africa.
It said through the Power Africa Initiative, over 33 million Nigerians have been connected, about $4.5bn have been mobilised for on-grid and off-grid power projects in Nigeria, and over 200 private companies in the off-grid sector have received assistance.
“This initiative 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.
“The ministry is committed to ensuring these interventions deliver tangible benefits to all Nigerians, promoting economic growth and sustainable development,” it stated.
