USAID Signs Memorandum of Understanding with Energy Department, Pledges ₦115.2 Billion ($75 Million) for Electricity Reforms, Clean Energy Transition

On July 10, the United States Agency for International Development (USAID) and Nigeria’s Federal Ministry of Energy signed a Memorandum of Understanding (MOU) to support electricity sector reforms, market transparency, and broader access to sustainable, reliable, and affordable energy for Nigerians.

The memorandum of understanding was signed by USAID/Nigeria Mission Director Melissa A. Jones and Department of Energy Permanent Secretary Mahmuda Mamman.

This agreement will facilitate the implementation of a US government-funded technical assistance program of ₦115.2 billion (approximately $75 million) for energy sector development and reform in Nigeria.

Currently, more than 85 million Nigerians do not have access to grid electricity, while many others struggle to find power.

These challenges force many Nigerian households and businesses to rely on expensive petrol and diesel backup generators, which generate high emissions.

Director Jones emphasized the U.S. government’s commitment to advancing electrification in Nigeria, saying, “Today’s goal is to strengthen collaboration between USAID and the Federal Government of Nigeria and provide a framework for partnerships with other key stakeholders, including state and local governments, the electric power generation and distribution sectors, and the off-grid sector.”

Power Africa Coordinator Richard Nelson, who attended the signing ceremony during his first official visit to Nigeria, noted: “Nigeria is at the heart of Power Africa’s strategy. I look forward to elevating our partnership to advance Nigeria towards our shared goal of ensuring access to reliable, sustainable and affordable energy for all.”

Energy Minister Adebayo Adelabu expressed gratitude for USAID’s support, noting the partnership’s potential to transform Nigeria’s energy sector.

He said: “This collaboration with USAID is a significant milestone towards achieving sustainable and reliable electricity supply for all Nigerians. Together, we will address long-standing challenges, ensure transparency, increase 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 access to electricity in sub-Saharan Africa.

Through this initiative, over 33 million Nigerians have been connected to the electricity grid, approximately $4.5 billion has been mobilized for on-grid and off-grid energy projects in Nigeria, and over 200 private companies in the off-grid sector have received assistance.

This new initiative aims to strengthen policy frameworks, improve regulatory capacity and encourage private sector participation, leading Nigeria towards its clean energy and net-zero carbon emissions goals.

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

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