USAID signs MOU with Ministry of Power, pledges ₦115.2bn for electricity reforms, clean energy transition

U.S. Agency for International Development (USAID) and the Federal Ministry of Power of Nigeria signed a memorandum of understanding (MOU) to support electricity sector reforms, market transparency, and expanded access to sustainable, reliable, and affordable power for Nigerians. USAID/Nigeria Mission Director Melissa A. Jones and Permanent Secretary of the Ministry of Power Mahmuda Mamman signed the MOU. This agreement will facilitate the implementation of a ₦115.2 billion (approximately $75 million) U.S. government grant-funded technical assistance program for power sector development and reforms in Nigeria. Currently, 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.

Director Jones emphasised the U.S. government’s commitment to advancing electrification in Nigeria, stating, “Today’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.” Power Africa Coordinator Richard Nelson, attending the signing ceremony during his first official visit to Nigeria, noted “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.”

Minister of Power Adebayo Adelabu expressed gratitude for USAID’s support, emphasising the partnership’s potential to transform Nigeria’s power sector. He stated, “This 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.” 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. Through this initiative, over 33 million Nigerians have been connected to power, approximately $4.5 billion has 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.

This 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. The Ministry is committed to ensuring these interventions deliver tangible benefits to all Nigerians, promoting economic growth and sustainable development.