General Electric Co. (GE) Chairman Jeffrey Immelt said the company will invest $1 billion in Nigeria over the next five years by building a manufacturing plant to support power generation and oil production.
“We are committed to playing our part in the sustainable growth of the country and the positive impact this will have on Nigeria and the continent of Africa as a whole,” Immelt said in a statement handed to reporters today in Abuja during the signing of the agreement with Trade and Investment Minister Olusegun Aganga.
GE will invest $250 in capital expenditure “that will make Nigeria a regional hub” in manufacturing and services. The company will make products that would support power generation and oil and gas exploration and production.
Africa’s top oil producer and most populous country of more than 160 million people is seeking increased investments in power to meet demand that’s more than double the current output of about 4,000 megawatts. The government has ended state monopoly of power utilities and sold generation and distribution companies to private investors.
The manufacturing plant will be based in the southeastern city of Calabar in Cross River state, and additional investments will be made in the company’s service workshops in the southern oil hub of Port Harcourt and Onne port nearby.
More than $800 million of investments will go to sourcing of goods, services and staff over the next five years. The investment is expected to create 2,300 jobs, “300 of which will be direct GE hires and the remaining 2,000 indirect jobs created through GE suppliers,” the company said in the statement.
GE will produce power turbines for domestic use and export, Aganga told reporters after the signing ceremony.
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