U.S. Govt. signs agreement with FG, pledges ₦115.2bn for electricity

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L-R: Permanent Secretary, Ministry of Power, Mahmuda Mamman,  USAID/Nigeria Mission Director, Melissa Jones, signing the MoU, while the Director, PRS, Ministry of Power, Bosede Olaniyi,  Minister of Power, Adebayo Adelabu, and the Power Africa Coordinator, Richard Nelson, witness the signing ceremony.

By Mark Longyen

The U.S. Agency for International Development (USAID) has signed a memorandum of understanding (MoU) with Nigeria to support Nigeria’s electricity sector reforms, market transparency, access to sustainable, reliable, and affordable electricity.

USAID/Nigeria Mission Director, Melissa Jones, and the Permanent Secretary, Ministry of Power, Mahmuda Mamman, signed the MOU, the U.S. Embassy stated on Thursday in Abuja.

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According to the U.S. Mission, the agreement will facilitate the implementation of a ₦115.2 billion ($75 million) U.S. government grant-funded technical assistance program for power sector development and reforms in Nigeria.

“Today’s goal is to strengthen collaboration between USAID and the Federal Government of Nigeria.

“And to provide a framework for partnerships with other key actors, including state and local governments, electricity generation and distribution sectors, and the off-grid sector.

“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 stated.

Speaking, the Minister of Power, Adebayo Adelabu, expressed gratitude for USAID’s support, and underscored the partnership’s potential to transform Nigeria’s power sector.

“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,” he said.

Also speaking, Richard Nelson, Power Africa Coordinator, said: “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.”

The MoU between the two countries basically aims at addressing electricity reforms and clean energy transition of power.

USAID is to address 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 mobilized 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,” the Mission added.(NAN)

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