USAID launches N115bn program to boost Nigeria’s energy sector

The United States Agency for International Development (USAID) has announced the launch of a N115 billion program aimed at supporting Nigeria’s energy reform and clean energy transition.

The announcement was made by USAID’s Mission Director in Nigeria, Ms. Melisa Jones, during the signing of a Memorandum of Understanding (MoU) with the Federal Ministry of Power in Abuja.

The MoU aims to secure Nigeria’s commitment to electricity sector reforms, enhance market transparency and liquidity, and expand access to sustainable, reliable, and affordable electricity.

Ms. Jones emphasized that the agreement would strengthen the partnership between USAID and the Ministry, while also supporting power sector development and reforms in Nigeria through a U.S. government grant-funded Technical Assistance program.

“USAID is thrilled to launch a new milestone in our partnership with the Ministry of Power,” said Ms. Jones. “Through this MoU, we intend to intensify and accelerate our collaboration. With more than 85 million Nigerians lacking access to grid power and many relying on expensive, emission-intensive backup generators, our goal is to strengthen this collaboration and provide a framework for our partnership with other key actors, including the state.”

The new program, named Empower Nigeria, is set to drive significant progress in Nigeria’s energy reform and clean energy transition.

Mr. Richard Nelson, Coordinator of Power Africa, highlighted the longstanding commitment of the initiative to improving electricity access across the continent. He noted that nearly 200 million people have gained access to electricity through Power Africa, emphasizing Nigeria’s crucial role in their agenda.

Nigeria’s Minister of Power, Adebayo Adelabu, emphasized the essential role of energy in national development and reiterated the country’s dedication to stabilizing the power sector. He commended USAID for its support and reaffirmed the Federal Government’s commitment to ensuring transparency, improving market efficiency, and accelerating the transition to clean energy solutions.

“We believe that without energy, there is nothing to achieve. It’s critical to develop other sectors, which is why the President’s Development Group has prioritized energy as its priority sector to drive the development of other sectors,” said Minister Adelabu.