General Electric (GE) has signed on to help oil- and gas-rich but energy-poor Nigeria to develop 10 gigawatts of additional electrical-generating capacity.
Under the five-year memorandum of understanding signed over the weekend, the U.S. industrial conglomerate said it would help build and operate new plants, and potentially take a 10% to 15% interest in individual projects.
Nigeria, with a population of 160 million people, has Africa’s second-largest economy, but a woefully inadequate electrical grid. The country, which is privatizing its energy sector, says it will need $10 billion a year of investment over the next decade to meet its energy goals.
The country currently is able to produce about 4,000 megawatts of energy, well shy of the 40,000 megawatts the government hopes to achieve by 2020.
Nigerian media reported that government officials said GE has pledged $10 billion in investments, though on Monday GE said there was no specific dollar amount in the deal.
Earlier this month, GE said it was refocusing its business on resource-rich developing areas, as Asian growth slows, and mature markets in the U.S. and Europe struggle.