FG, USAID Sign N115.2 billion MoU on Electricity Reform, Clean Energy

Minister of Power Chief Adebayo Adelabu and USAID/Nigeria Mission Director, Melissa Jones alongside US Government's Power Africa Coordinator, Richard Nelson at the signing of the MoU

"The #115.2bn partnership with USAID represents a pivotal step towards overcoming the long-standing challenges in providing reliable and sustainable power to all Nigerian." Chief Adebayo Adelabu.

"It strengthens our collaboration and provides critical resources to tackle the challenges in our Power Sector".

In order to improve on the gains in the Energy sector, the Federal government of Nigeria has signed a Memorandum of Understanding (MOU) with the United States Agency for International Development (USAID). 

The MoU is focused on the effective implementation of  N115.2Billion for Electricity Reforms and Clean Energy Transition in the country.

This is part of the commitment of the Federal Goverment towards electricity sector reforms, market transparency, liquidity, expanding Nigeria's access to sustainable, reliable and affordable Power supply.

This was the disclosure of the Minister of Power, Chief Adebayo Adelabu on Thursday in Abuja during the signing of the MoU.

According to the Minister, "the #115.2bn partnership with USAID represents a pivotal step towards overcoming the long-standing challenges in providing reliable and sustainable power to all Nigerian."

"It strengthens our collaboration and provides critical resources to tackle the challenges in our Power Sector".

Adebayo said the event aligned perfectly with the National goals 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". He stated.

While expressing his sincere gratitude to USAID for their unwavering commitment to supporting Nigeria's Electrification efforts, the Minister emphasized that by working with USAID and leveraging on their expertise, "we can empower the private sector, strengthen regulation and unlock the full potential of the Power sector."

Earlier in her remarks, the USAID/Nigeria Mission Director, Melissa Jones said that the MOU will support the effective implementation of the N115.2billion  U.S government grant funded technical assistance program, intended to support 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 our partnership with other key actors, including state and local governments, electricity generation and distribution sectors and the off-grid sector is laudable and timely."

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

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

"The Nigeria Power sectors long standing challenges, impair industrial growth and economic competitiveness, rural development, health and education sector performance and the nations overall economic growth and development".

Earlier in his opening remarks, the Permanent Secretary, Federal Ministry of Power, Mr. Mahmuda Mamman pointed out that USAID has been a reliable partner to the Ministry of Power 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 this year.

Meanwhile, the US Government's Power Africa Coordinator, Richard Nelson who was on hand to observe the signing ceremony, in a brief remarks, 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 affordable power for all." He said.

This was contained in a statement issued and signed by Chinwe Udouwem, Chief information and Public Relations Officer on behalf of the Director, Information and made available to journalists.