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USAID and Nigeria Partner to Invest N115bn in Power Sector Reform

The United States Agency for International Development (USAID) and Nigeria’s Federal Ministry of Power have joined forces to address the country’s longstanding electricity challenges. A landmark Memorandum of Understanding (MoU) was signed on Wednesday, paving the way for a substantial N115.2 billion ($250 million) investment in Nigeria’s power sector.

Key Points:

  • A MoU signed between USAID and Nigeria’s Federal Ministry of Power.
  • N115.2 billion technical assistance programme to support power sector reforms
  • Aims to improve electricity access, market transparency, and sector liquidity.

The Challenge:

  • Over 85 million Nigerians lack access to grid power.
  • Widespread reliance on expensive, emission-intensive backup generators
  • Power sector issues hinder industrial growth and economic competitiveness.

USAID’s Commitment: USAID/Nigeria Mission Director Melissa Jones emphasised the importance of collaboration: “This partnership strengthens our commitment to advancing electrification in Nigeria, providing a framework for cooperation with key stakeholders across all levels of government and the energy sector.”

Power Africa Initiative:

  • A US government-led partnership to double electricity access in sub-Saharan Africa
  • Connected over 33 million Nigerians to power
  • Mobilised $4.5 billion for on-grid and off-grid projects in Nigeria
  • Assisted over 200 private companies in the off-grid sector

Nigerian Government’s Perspective: Minister of Power Adebayo Adelabu highlighted the partnership’s potential: “This collaboration with USAID marks a significant milestone in achieving sustainable and reliable electricity for all Nigerians. We’ll address longstanding challenges, ensure transparency, enhance market liquidity, and accelerate our transition to clean energy solutions.”

Objectives of the partnership:

  1. Strengthen policy frameworks.
  2. Enhance regulatory capacities
  3. Encourage private sector participation.
  4. Drive progress towards clean energy and net-zero carbon emissions targets.

Impact on Development: The initiative aims to positively influence:

  • Industrial growth
  • Economic competitiveness
  • Rural development
  • Health and education sector performance
  • Overall economic growth and development

Looking Ahead: Power Africa Coordinator Richard Nelson expressed optimism about the partnership: “Nigeria is central to Power Africa’s strategy. We look forward to advancing Nigeria’s progress towards our shared goal of ensuring access to reliable, sustainable, and affordable power for all.”

Conclusion: This strategic partnership between USAID and Nigeria represents a significant step towards revolutionising the country’s power sector. By addressing key challenges and leveraging substantial investments, the initiative promises to deliver tangible benefits to millions of Nigerians, promoting economic growth and sustainable development in the process.

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