US agency set to invest multi-billion naira into Nigeria’s electricity

• A memorandum of arrangement was signed by the US Agency for International Development and the Federal Ministry of Power
• This was done to ensure Nigeria's dedication to market openness, liquidity, and the expansion of affordable power access
• Through the MOU, a technical assistance program funded by a N115.2 billion grant from the US government will be supported

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

To guarantee Nigeria's commitment to electrical sector reforms, market openness, liquidity, and expanding access to cheap power, the Federal Ministry of Power and the US Agency for International Development signed a memorandum of agreement on Wednesday, July 10.

The MOU intends to facilitate the execution of a technical assistance program funded by a N115.2 billion grant from the US government. Photo Credit: Sirisak Boakaew
Source: Getty Images

This was declared by both parties in a power ministry statement released in Abuja as reported by The Punch.

The MOU, which aims to support the implementation of a N115.2 billion US government grant-funded technical assistance program intended to support power sector development and reforms in Nigeria, was signed by Mahmuda Mamman, the Permanent Secretary of the Federal Ministry of Power, and Melissa Jones, the Director of USAID/Nigeria Mission.

PAY ATTENTION: Share your outstanding story with our editors! Please reach us through info@corp.legit.ng!

In addition to many experiencing unstable power supplies, over 85 million Nigerians lack access to grid power. Owing to these difficulties, a large number of Nigerian homes and companies rely on pricey, highly polluting diesel and gasoline backup generators.

Long-standing issues with the Nigerian electricity sector hinder the country's overall economic growth and development as well as rural and health sector performance, industrial expansion, and economic competitiveness.

Jones reaffirmed the US government's intention to push Nigeria toward electricity.

She said,

“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, the US government's Power Africa Coordinator, attended the signing ceremony on his first official trip 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.”

Adebayo Adelabu, the Minister of Power, acknowledged the transformative potential of the partnership while expressing gratitude for USAID's ongoing support.

“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,” he stated.

How USAID operates

According to the statement, USAID uses the Power Africa Initiative, a US government-led collaboration that doubles sub-Saharan Africa's access to electricity by combining the resources of the public and private sectors, to address these issues.

It added that over 33 million Nigerians have been connected through the electricity Africa Initiative, over $4.5 billion has been raised for on- and off-grid electricity projects in Nigeria, and more than 200 private off-grid businesses have benefited from support.

“This initiative will strengthen policy frameworks, enhance regulatory capacities, and encourage private sector participation, ultimately driving the nation 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.”

FG gives orders to reduce electricity supply

Legit.ng reported that the Nigerian Electricity Regulatory Commission (NERC) is set to enhance power supply to domestic consumers following its orders directing the System Operator (SO) to cap supplies to international customers by 6 per cent of domestic supplies.

The affected countries include Togo, Benin Republic and the Niger Republic.

The development comes amid a high level of indebtedness and non-remittance of electricity bills supplied to the countries over the years.

Source: Legit.ng