USAID Signs MOU With Nigeria To Invest ₦115.2bn In Electricity Reforms, Clean Energy Initiatives

The US Agency for International Development (USAID) and Nigeria’s Federal Ministry of Power have signed a memorandum of understanding (MOU) to promote electricity sector reforms, market transparency, and increased access to sustainable, reliable, and affordable power for Nigerians.

The MOU was signed by Melissa A. Jones, Director of the USAID/Nigeria Mission, and Mahmuda Mamman, Permanent Secretary of the Ministry of Power. The agreement will help Nigeria implement a US government-funded technical assistance programme worth ₦115.2 billion (approximately $75 million) for power sector development and reforms.
Over 85 million Nigerians currently lack access to grid power, and many others face unreliable supply. Because of these difficulties, many Nigerian families and businesses must rely on expensive, polluting petrol and diesel backup generators.
Director Jones emphasised the US 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 actors, including state and local governments, the electricity generation and distribution sectors, and the off-grid sector.”
Attending the signing ceremony during his first official visit to Nigeria, Power Africa Coordinator Richard Nelson stated, “Nigeria is at the heart of Power Africa’s strategy.” I look forward to expanding our collaboration to help Nigeria achieve our common goal of ensuring access to reliable, sustainable, and affordable power for all.
Adebayo Adelabu, Minister of Power, expressed appreciation for USAID’s assistance, emphasising the partnership’s potential to transform Nigeria’s power sector. He stated, “This collaboration with USAID is a significant step towards providing sustainable and reliable electricity to all Nigerians. Together, we will address long-standing issues, improve market liquidity, and hasten our transition to clean energy solutions.”
USAID addresses these issues through the Power Africa Initiative, a US government-led partnership that combines public and private sector resources to double electricity access in Sub-Saharan Africa. Over 33 million Nigerians have been connected to power as a result of this initiative, and approximately $4.5 billion has been mobilised for on-grid and off-grid power projects in Nigeria, as well as assistance to over 200 private off-grid companies.
This new initiative aims to strengthen policy frameworks, improve regulatory capacity, and encourage private sector participation in order to help Nigeria achieve its clean energy and net-zero carbon emissions targets. The Ministry is committed to ensuring that these interventions provide tangible benefits to all Nigerians while also promoting economic growth and sustainable development.