Nigerian Government and USAID Sign ₦115bn Agreement to Improve Electricity Sector
Fiona Nanna, ForeMedia News
4 minutes read. Updated 10:00AM GMT Thurs, 11 July, 2024
The Federal Ministry of Power in Nigeria and the United States Agency for International Development (USAID) have signed a Memorandum of Understanding (MoU) valued at ₦115 billion. This agreement aims to reinforce Nigeria’s commitment to comprehensive electricity sector reforms, ensuring market transparency, liquidity, and expanding access to affordable power. This crucial development was announced in a statement issued by the power ministry in Abuja on Wednesday.
The MoU was signed by USAID/Nigeria Mission Director, Melissa Jones, and the Permanent Secretary of the Federal Ministry of Power, Mahmuda Mamman. The agreement underscores a US government grant-funded technical assistance program worth ₦115.2 billion, designed to support power sector development and reforms across Nigeria.
Significance of the MoU
Commenting on this landmark agreement, Melissa Jones highlighted the US government’s unwavering commitment to advancing electrification efforts in Nigeria. She emphasized, “Today’s goal is to strengthen collaboration between USAID and the Federal Government of Nigeria. This MoU provides a framework for partnerships with key stakeholders, including state and local governments, electricity generation and distribution sectors, and the off-grid sector. It is both laudable and timely.”
Nigeria’s Minister of Power, Adebayo Adelabu, expressed his gratitude for USAID’s continued support. He underscored the transformative potential of this collaboration, stating, “This partnership with USAID marks a significant milestone in our journey towards achieving a sustainable and reliable electricity supply for all Nigerians. Together, we will tackle longstanding challenges in the power sector, ensuring transparency, enhancing market liquidity, and accelerating our transition to clean energy solutions.”
Power Africa Initiative’s Impact
The statement further explained that USAID addresses these challenges through the Power Africa Initiative. This US government-led partnership mobilizes resources from both public and private sectors to double access to electricity in sub-Saharan Africa. Through this initiative, over 33 million Nigerians have gained access to electricity, approximately $4.5 billion has been mobilized for on-grid and off-grid power projects, 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 statement added. The ministry is committed to ensuring that these interventions deliver tangible benefits to all Nigerians, promoting economic growth and sustainable development.
Richard Nelson, the US government’s Power Africa Coordinator, emphasized Nigeria’s pivotal role in Power Africa’s strategy. He remarked, “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, and affordable power for all.”
For more information on the Power Africa Initiative and its impact, visit USAID Power Africa.
To understand the broader implications of this partnership and other related developments, explore articles on Nigeria’s Power Sector Reforms and Global Energy Partnerships.
