FG and USAID sign N115 billion MoU to support energy sector reforms

The Ministry of Energy and the United States Agency for International Development (USAID) have signed a memorandum of understanding (MoU) worth N115.2 billion ($75 million) to support power sector reforms.

The signing of the agreement was aimed at increasing market transparency as well as expanding access to sustainable, reliable and affordable energy for Nigerian citizens, said a statement issued on Wednesday.

Melissa Jones, Mission Director of USAID in Nigeria, and Mahmuda Mamman, Permanent Secretary of the Ministry of Energy, signed the agreement on behalf of both parties.

“This agreement will facilitate the implementation of a technical assistance program funded by a ₦115.2 billion (approximately $75 million) US government grant for energy sector development and reforms in Nigeria,” the statement said.

“Currently, over 85 million Nigerians have no access to the electricity grid, and many more struggle with unreliable supply.”

USAID reported that these challenges force many Nigerian families and businesses to rely on costly, high-emission backup generators powered by gasoline and diesel.

“USAID is addressing these challenges through the Power Africa Initiative, a U.S. government-led partnership that leverages public and private sector resources to double access to electricity in sub-Saharan Africa,” the agency said.

“Through this initiative, over 33 million Nigerians have gained access to electricity, about $4.5 billion has been mobilised for power projects in Nigeria, both on- and off-grid, and over 200 private companies in the off-grid sector have been assisted.

“This new initiative aims to strengthen the policy framework, increase regulatory capacity and encourage private sector participation, which will lead Nigeria to achieve its clean energy and net zero carbon emissions goals.”

According to USAID, the Ministry of Energy is committed to ensuring that these interventions deliver tangible benefits to all Nigerian citizens by promoting economic growth and sustainable development.

“US GOVERNMENT COMMITS TO ELECTRIFICATION DEVELOPMENT”

Jones said the U.S. government is committed to supporting Nigeria’s electrification.

“Today’s goal is to strengthen collaboration between USAID and the Federal Government of Nigeria and to create a framework for partnerships with other key actors, including state and local governments, the electricity generation and distribution sectors, and the off-grid sector,” she said.

Richard Nelson, Power Africa Coordinator, also stated that Nigeria is the cornerstone of the Power Africa strategy.

“I look forward to strengthening our collaboration to accelerate Nigeria’s progress towards our shared goal of ensuring access to reliable, sustainable and affordable energy for all,” Nelson said.

Energy Minister Adebayo Adelabu expressed gratitude for USAID’s support, highlighting the partnership’s potential to transform Nigeria’s energy sector.

“This partnership with USAID is an important milestone in our drive to ensure sustainable and reliable electricity supply for all Nigerians,” he said.

Adelabu said the collaboration could solve long-standing issues, ensure transparency, increase market liquidity and accelerate the transition to clean energy solutions.