Nigeria’s electricity sector is set for a major overhaul thanks to a significant memorandum of understanding (MOU) signed on Wednesday between the United States Agency for International Development (USAID) and the Federal Ministry of Power. This MOU paves the way for critical electricity sector reforms in Nigeria, backed by a N115.2 billion grant from the US government to fund technical assistance programs.
The substantial N115.2 billion grant aims to improve transparency and liquidity within the electricity market, ultimately expanding access to affordable and reliable power for Nigerians. This is a crucial step forward considering that over 85 million Nigerians currently lack access to grid power. This lack of access hinders economic growth and development across various sectors, impacting industries, rural communities, healthcare, education, and overall national progress.
USAID Mission Director, Melissa Jones, reiterated the US government’s unwavering commitment to advancing electrification in Nigeria. She emphasized the importance of collaboration, stating, “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…” This collaborative effort will encompass state and local governments, electricity generation and distribution sectors, and the off-grid sector.
Witnessing the signing ceremony during his first official visit to Nigeria, US government’s Power Africa Coordinator, Richard Nelson, acknowledged Nigeria’s central role in the Power Africa Initiative’s strategy. He expressed his enthusiasm for strengthening the partnership to achieve the shared goal of ensuring access to reliable, sustainable, and affordable electricity for all Nigerians.
The Nigerian Minister of Power, Adebayo Adelabu, expressed his gratitude for USAID’s continued support, underlining the collaboration’s potential to transform the nation’s power sector. He stated, “This partnership with USAID is a significant milestone in the journey towards achieving a sustainable and reliable electricity supply for all Nigerians…” Minister Adelabu elaborated on the collaborative efforts that will tackle longstanding challenges, ensure transparency, enhance market liquidity, and accelerate the transition to clean energy solutions.
The press release highlighted the instrumental role of USAID’s Power Africa Initiative. This US government-led partnership works to combine public and private sector resources to double access to electricity across sub-Saharan Africa. Through Power Africa’s efforts, over 33 million Nigerians have already gained access to electricity. Additionally, the initiative has mobilized $4.5 billion for on-grid and off-grid power projects in Nigeria, while also supporting over 200 private companies in the off-grid sector.
The statement continued, outlining the initiative’s goals of strengthening policy frameworks, enhancing regulatory capacities, and encouraging private sector participation. Ultimately, these efforts aim to propel Nigeria towards achieving its clean energy and net-zero carbon emission targets. The Ministry of Power remains committed to ensuring these interventions deliver tangible benefits to all Nigerians, fostering economic growth and sustainable development.
