FG, USAID sign ₦115 billion agreement to improve energy sector

The Federal Ministry of Energy and the United States Agency for International Development (USAID) have entered into a ₦115 billion agreement aimed at strengthening Nigeria’s commitment to power sector reforms, increasing market transparency, improving liquidity and expanding access to affordable energy.

Both parties announced this in a statement issued by the Energy Ministry in Abuja on Wednesday.

The cooperation agreement signed on Wednesday by USAID/Nigeria Mission Director Melissa Jones and Federal Energy Ministry Permanent Secretary Mahmuda Mamman is intended to support the implementation of a ₦115.2 billion U.S. government grant-funded technical assistance program aimed at supporting energy sector development and reforms in Nigeria.

Commenting on the development, Jones highlighted the US government’s commitment to advancing electrification in Nigeria.

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

Energy Minister Adebayo Adelabu expressed gratitude for USAID’s continued support, underscoring the transformative potential of this cooperation.

“This partnership with USAID is an important milestone in achieving sustainable and reliable electricity supply for all Nigerians. Together, we will address the long-standing challenges in the energy sector by ensuring transparency, increasing market liquidity and accelerating our transition to clean energy solutions,” he stated.

The statement said USAID is working to alleviate these challenges through the Power Africa Initiative, a U.S. government-led partnership that leverages the collective resources of the public and private sectors to double access to electricity in sub-Saharan Africa.

The company said the Power Africa initiative has connected over 33 million Nigerians, mobilised about $4.5 billion for power projects in Nigeria, both on- and off-grid, and provided assistance to over 200 private companies in the off-grid sector.

For his part, the US government’s Power Africa coordinator, Richard Nelson, said, “Nigeria is at the heart of the Power Africa strategy. I look forward to elevating our partnership to accelerate Nigeria’s progress toward our shared goal of ensuring access to reliable, sustainable, and affordable energy for all.”