“This collaboration may assist in Nigeria to surpass target of 6000MW by end of 2024”- Mamman PS Ministry of Power

Oredola Adeola

The Federal Government of Nigeria and USAID have signed an N115.2 billion Memorandum of Understanding (MoU) to support Nigeria’s electricity reform and clean energy transition to strengthen collaboration to ensure reliable, sustainable, and affordable power for all Nigerians.

The agreement was signed by Chief Adebayo Adelabu, Minister of Power, and Melissa Jones, USAID/Nigeria Mission Director, on Thursday in Abuja, as part of the country’s agenda for electricity reforms and clean energy transition.

According to Advisors Reports, the event signifies the Federal Government’s commitment to electricity sector reforms, market transparency, liquidity, and expanding access to sustainable, reliable, and affordable power in Nigeria.

Adelabu stated that the N115.2 billion partnership with USAID is a pivotal step towards overcoming the long-standing challenges of providing reliable and sustainable power to all Nigerians. “It strengthens our collaboration and provides critical resources to tackle the challenges in the power sector,” he said.

Adelabu emphasized that the event aligns perfectly with the national goal of achieving net-zero carbon emissions. “We are committed to working together to ensure transparency, improve market efficiency, and accelerate the transition to clean energy solutions.”

While commending USAID for its unwavering commitment to supporting Nigeria’s electrification efforts, the Minister emphasized that collaboration with USAID will empower the private sector, strengthen regulation, and unlock the full potential of the power sector.

Melissa Jones, USAID/Nigeria Mission Director, remarked that the MoU would support the effective implementation of the N115.2 billion U.S. government grant-funded technical assistance program, aimed at supporting power sector development and reforms in Nigeria.

“The goal is to strengthen collaboration between USAID and the Federal Government of Nigeria and to provide a framework for our partnership with other key actors, including state and local governments, electricity generation and distribution sectors, and the off-grid sector,” she said. Jones emphasized that the collaboration is both laudable and timely.

However, Melissa Jones regretted that over 85 million Nigerians have no access to grid power, while many suffer from unreliable power supply.

She noted that many Nigerian families and businesses depend on expensive, emission-intensive gasoline and diesel backup generators due to these challenges.

“The Nigeria power sector’s long-standing challenges impair industrial growth and economic competitiveness, rural development, health and education sector performance, and the nation’s overall economic growth and development,” she added.

Mahmuda Mamman, Permanent Secretary of the Ministry of Power, stated that USAID has been a reliable partner to the Ministry and has taken the sector to another milestone.

He revealed that the power sector has recorded a significant generation of 5000MW in 2024, and this collaboration may assist in surpassing the expected target of 6000MW by the end of the year.

Richard Nelson, the U.S. Government’s Power Africa Coordinator, who observed the signing ceremony, noted that Nigeria is at the core of Power Africa Coordination.

“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,” he said