GE signs pact with Nigeria for $10 bn in new power plants

General Electric (GE) has signed a memorandum of understanding with Nigeria for investment of $10 billion in new power plants, in which it would take a 10 per cent to 15 per cent equity stake, according to a  power ministry spokesman.

The spokesman yesterday said GE would join government and power partners after privatisation of Nigeria's power sector, which is said to be run down and woefully inadequate.

Though the details of the deal are yet to be to be worked out it would include "the potential for GE and the government to take minority equity positions in viable projects, where GE would supply power generation technology and services, GE said in a statement.

"The government of Nigeria has publicly set a goal of $10 billion in new power infrastructure projects," the statement added.

"However, the MOU does not outline investment amounts or commitments. GE will potentially invest 10 percent to 15 percent in individual projects."

Nigeria has been looking to set up gas-fired stations that could run off its huge natural gas reserves.