GE USA signs $10 billion investment in power plants with Nigeria

Prof. Barth Nnaji Prof. Barth Nnaji

A MEMORANDUM of understanding (MoU) involving Federal Government and the General Electric (GE Energy) has been signed in London.

The deal covers a N175 billion (about $10 billion) investment in power plants with capacity to generate 10,000 megawatts.

Power Minister Prof. Barth Nnaji, who led a delegation to sign the agreement at the Nigerian High Commission in London, told reporters that the GE has interest in acquiring at least 15 per cent stake in power plan.

The development countered earlier reports that the British firm wanted to build a 10,000 megawatts capacity plant in Nigeria.

The investment could be sunk into existing plants or on new plants. But such investment will be after the conclusion of the privatisation of the power sector, The Nation learnt.

According to the minister, the GE’s move is the highest expression of investment support toward the govern-ment’s aspiration of achieving 40,000 megawatts generation by 2020.

He said: “To have a company willing to work with us on the delivery of 10,000MW is a show of confidence in Mr. President’s vision.

“Even if the equity is one per cent, it is still significant because it will take us somewhere. And with 15 per cent, Federal Government will provide the balance.”

He explained the government will not be involved in any of the projects, but will provide guarantees for the private sector participants.

He said: “The local content will be huge power because GE and any other foreign investor must have local partners.”

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