USAID pledges N115bn for electricity reforms, clean energy transition

The U.S. Agency for International Development (USAID) and the Federal Ministry of Power of Nigeria have signed a memorandum of understanding (MOU) to support electricity sector reforms, market transparency, and expanded access to sustainable, reliable, and affordable power for Nigerians.

A press statement by US agency, Thursday in Abuja, disclosed that the USAID/Nigeria Mission Director, Melissa A. Jones, and Permanent Secretary of the Ministry of Power, Mahmuda Mamman, signed the MOU.

โ€œThis agreement will facilitate the implementation of a โ‚ฆ115.2 billion (approximately $75 million) U.S. government grant-funded technical assistance programme for power sector development and reforms in Nigeria.

โ€œCurrently, over 85 million Nigerians lack access to grid power, while many others face unreliable supply. These challenges force many Nigerian families and businesses to rely on expensive, emission-intensive gasoline and diesel backup generators,โ€ the statement noted.

It further stated that, Director Jones emphasized the U.S. governmentโ€™s commitment to advancing electrification in Nigeria, stating, โ€œTodayโ€™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.โ€

Similarly, Power Africa Coordinator, Richard Nelson, who attended the signing ceremony during his first official visit to Nigeria, noted, โ€œNigeria is at the core of Power Africaโ€™s strategy. I look forward to elevating our partnership to advance Nigeriaโ€™s progress towards our shared goal of ensuring access to reliable, sustainable, affordable power for all.โ€

On his part, Minister of Power, Adebayo Adelabu, expressed gratitude for USAIDโ€™s support, emphasising the partnershipโ€™s potential to transform Nigeriaโ€™s power sector.

He stated, โ€œThis collaboration with USAID is a significant milestone towards achieving sustainable and reliable electricity supply for all Nigerians. Together, we will address longstanding challenges, ensure transparency, enhance market liquidity, and accelerate our transition to clean energy solutions.โ€

Blueprint reports that USAID addresses these challenges through the Power Africa Initiative, a U.S. government-led partnership, that leverages public and private sector resources to double electricity access in sub-Saharan Africa.

โ€œThrough this initiative, over 33 million Nigerians have been connected to power, approximately $4.5 billion has been mobilized for on-grid and off-grid power projects in Nigeria, and over 200 private companies in the off-grid sector have received assistance.

โ€œThis new initiative aims to strengthen policy frameworks, enhance regulatory capacities, and encourage private sector participation, driving Nigeria towards its clean energy and net-zero carbon emissions targets.

โ€œThe Ministry is committed to ensuring these interventions deliver tangible benefits to all Nigerians, promoting economic growth and sustainable development,โ€ the statement further noted.