FG, USAID sign N115bn MoU to support power sector reforms

Jones reiterated the US government’s commitment to advancing electrification in Nigeria.


The Federal Ministry of Power and the United States Agency for International Development (USAID) have entered into a landmark ₦115 billion Memorandum of Understanding (MoU) aimed at transforming Nigeria’s power sector.

The agreement seeks to ensure Nigeria’s commitment to implementing critical electricity sector reforms, enhancing market transparency, addressing liquidity issues, and increasing access to affordable power for citizens.

The partnership is expected to have a significant impact on Nigeria’s power sector, boosting economic growth and development.

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

The MoU signed by USAID’s Nigeria Mission Director, Melissa Jones, and the Permanent Secretary of the Federal Ministry of Power, Mahmuda Mamman, was to support the implementation of a ₦115.2bn US government grant-funded technical assistance programme intended to support power sector development and reforms in Nigeria.

While commenting on the development, Jones reiterated the US Government’s commitment to advancing electrification in Nigeria.

“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, including state and local governments, electricity generation and distribution sectors, and the off-grid sector. It is laudable and timely,” she said.

The Minister of Power, Adebayo Adelabu, expressed gratitude for USAID’s continued support, emphasising the collaboration’s transformative potential.

“This partnership with USAID is a significant milestone in the journey towards achieving a sustainable and reliable electricity supply for all Nigerians. Together, we will tackle the longstanding challenges in the power sector, ensuring transparency, enhancing market liquidity, and accelerating our transition to clean energy solutions,” he stated.

The statement said USAID aims to address these challenges by implementing the Power Africa Initiative, a partnership led by the US government which brings together the combined resources of the public and private sectors to double electricity access in sub-Saharan Africa.

It mentioned that through the Power Africa Initiative, over 33 million Nigerians have been connected, about $4.5bn have been mobilised for on-grid and off-grid power projects in Nigeria, and over 200 private companies in the off-grid sector have received assistance.

The statement read, “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 ministry is committed to ensuring these interventions deliver tangible benefits to all Nigerians, promoting economic growth and sustainable development.”

On his part, the US government’s Power Africa Coordinator, Richard Nelson, said “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 affordable power for all.”

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