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Power sector reform: USAID supports Nigeria with N115bn

Partnership aims to boost electricity access and clean energy transition

From Isaac Anumihe, Abuja

As part of efforts to support Nigeria’s power reform and clean energy transition programme, the United States Agency for International Development (USAID) has donated $250 million (₦115.2 billion) to Nigeria.

Announcing the donation in Abuja, USAID Mission Director Richard Nelson said the grant fulfils a commitment made by US President Joe Biden at the Africa Leaders Summit.

“As we look at the important relationship between the US Government and the government of Nigeria in fulfilling some of the commitments of the Biden administration at the Africa Leaders Summit, this is one additional milestone in furthering our long-term relationship. I am very pleased to be here, and I pledge Power Africa’s continuing commitment to support the government of Nigeria and the people of Nigeria in your journey toward better access to electricity.

“We have been in operation for about 11 years and have made significant gains across the continent. We have helped almost 15,000 megawatts of power projects reach financial close – 152 different projects – leveraging about $26 billion.

“We have helped almost 200 million people across the continent get access to electricity. Nigeria is a special place for us. It has been a critical priority since the beginning and will continue to be so going forward. This Memorandum of Understanding (MOU) that we will be signing today represents a key component of the Power Africa engagement with Nigeria as a whole for the next several years. We are excited to be supporting that.

“The work that we’ve done in Nigeria has resulted in almost 5 billion connections, which represents upwards of 20 million people, just over the last five years. We’ve also supported about 3,000 megawatts of electricity reaching financial close. But we look to support more of that over the next few years.”

Read also: Again, power grid collapses for fourth time in 2024

In his remarks, the Minister of Power, Chief Adebayo Adekola Adelabu, said the ₦115.2 billion partnership with USAID represents a pivotal step towards overcoming longstanding challenges in providing reliable and sustainable power to all Nigerians.

“It strengthens our collaboration and provides crucial resources to tackle the challenges in our power sector. We are committed to working together to ensure transparency, improve market efficiency, and accelerate the transition to clean energy solutions. This aligns perfectly with our national goals of achieving net-zero carbon emissions.

“By working with USAID and leveraging their expertise, we can empower the private sector, strengthen regulations, and unlock the full potential of our power sector. This will not only bring light to millions of homes but also unlock economic growth and sustainable development across Nigeria.

“I want to express my sincere gratitude to USAID for their unwavering commitment to supporting Nigeria’s electrification efforts. Together, we will deliver a brighter future powered by clean and reliable energy for all Nigerians,” he said.

Earlier, the Permanent Secretary of the ministry, Mammuda Mamman, said the ministry had generated 5,000 megawatts by 2024, a feat never achieved by previous administrations.

He projected that the ministry would achieve 6,000 megawatts before the end of the year.

“For the first time in the history of Nigeria, in three years, we were able to reach a milestone generation of about 5,000 megawatts by 2024. This is something significant. The target is for us to be able to achieve 6,000 megawatts before the end of this year.

“With this collaboration that we are doing with [USAID], we are sure that we can even surpass the target that we set for ourselves this year,” he said.

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