General Electric Co and the government of Nigeria have signed a memorandum of understanding intended to help Africa's second-largest economy to build up its power grid. Nigeria aims to develop 10 gigawatts of additional electricity-generating capacity over the next decade, after it privatises its power sector, which is seen as dilapidated and woefully inadequate.
The largest US conglomerate denied an earlier statement by a spokesman for Nigeria's power ministry who had said GE had agreed to invest $10 billion in new power plants. "The (memorandum of understanding) does not outline investment amounts or commitments. GE will potentially invest 10 percent to 15 percent in individual projects," the world's largest maker of electric turbines said in a statement.
GE said it would supply power generating equipment and services to new electricity projects. Nigeria estimates it will need $10 billion a year of investment over the next decade to meet its energy needs. The oil-rich country has been seeking to build gas-fired stations that could tap its huge natural gas reserves. Its power sector only manages to supply the country's 160 million people with the electricity equivalent to that required by a mid-sized European city.
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