USAID Announces N115 Billion Investment to Boost Nigeria’s Power Sector

The United States Agency for International Development and the Federal Ministry of Power signed a memorandum of understanding on Wednesday to affirm Nigeria’s dedication to electricity sector reforms, ensuring market transparency, liquidity, and expanding access to affordable power.

The MOU was signed by USAID/Nigeria Mission Director Melissa Jones and the Permanent Secretary of the Federal Ministry of Power, Mahmuda Mamman. This agreement aims to implement a US government grant-funded technical assistance program worth N115.2 billion, intended to support the development and reform of Nigeria’s power sector. Both parties made this announcement in a statement released by the power ministry in Abuja.

Over 85 million Nigerians lack access to grid electricity, and many suffer from an unreliable power supply. Consequently, numerous Nigerian families and businesses rely on costly, emission-heavy petrol and diesel backup generators.

The persistent challenges in Nigeria’s power sector hinder industrial growth, economic competitiveness, rural development, and the performance of the health and education sectors, ultimately affecting the nation’s overall economic growth and development.

Jones emphasized the US government’s commitment to improving electrification in Nigeria.

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

The US government’s Power Africa Coordinator, Richard Nelson, was present at the signing ceremony during his first official visit to Nigeria.

“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,” he 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 stated that USAID works to mitigate these challenges through the Power Africa Initiative, a US government-led partnership that harnesses the collective resources of public and private sectors to double access to electricity in sub-Saharan Africa.

It said 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.

“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,” it stated.