USAID Drives Nigeria’s Energy Transition with N115bn Investment
The U.S. Agency for International Development (USAID) and Nigeria’s Federal Ministry of Power have entered a landmark partnership to revolutionize the country’s energy sector. The collaboration, formalized through a Memorandum of Understanding (MoU), aims to foster electricity sector reforms, enhance market transparency, and broaden access to sustainable, reliable, and affordable power for Nigerians.
The MoU, signed by USAID/Nigeria Mission Director Melissa Jones and Permanent Secretary of the Federal Ministry of Power Mahmuda Mamman, paves the way for a ₦115.2 billion (approximately $75 million) U.S. government grant-funded technical assistance program. This initiative is designed to address longstanding issues and drive transformative power sector development and reforms in Nigeria.
With over 85 million Nigerians lacking access to grid power and many others facing unreliable supply, the nation relies heavily on costly and environmentally harmful gasoline and diesel backup generators. These energy challenges hinder industrial growth, economic competitiveness, rural development, and the performance of health and education sectors.
Director Jones underscored the U.S. government’s dedication 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.”
Richard Nelson, Power Africa Coordinator for the U.S. government, also highlighted the significance of this partnership 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.”
Minister of Power Adebayo Adelabu expressed gratitude for USAID’s continuous support, emphasizing 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.”
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USAID’s Power Africa Initiative, a U.S. government-led partnership, has been instrumental in addressing power sector challenges across sub-Saharan Africa. Through this initiative, over 33 million Nigerians have gained access to electricity, approximately $4.5 billion has been mobilized for power projects, 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, propelling 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.
