The
Federal Government has sealed a $350m financing deal with a global
power and infrastructure giant, General Electric, to support the
construction of small-scale power projects across Nigeria.
The firm is making available the sum for
the construction of mini power plants, which will in turn help economic
activities in the country.
The Minister of Industry, Trade and
Investment, Mr. Olusegun Aganga, and his counterpart in the Ministry of
Power, Prof. Chinedu Nebo, signed on behalf of the Federal Government,
while the Global Chairman, GE, Mr. Jeff Immelt, and the Chief Executive
Officer, Stanbic IBTC Bank Nigeria, Mrs. Sola David-Borha, signed on
behalf of their organisations.
The fund will be managed by Stanbic IBTC.
Aganga had earlier spoke with State
House correspondents shortly after leading Immelt and other partners on a
courtesy visit to Vice-President Namadi Sambo at the Presidential Villa
on Friday.
He said each of the mini power plants would be producing between one and 20 megawatts of electricity.
The minister said, “You need captive
power in a place like Kano, for example, where you have a lot of people
in the textile sector, who today rely on liquefied petroleum fuel oil or
LPFO.
“The cost of production is quite high
because of lack of gas and power. They can have dedicated captive power
for that sector in industrial zones.
“That is what it (financing deal) is for
– financing mini power plants for our industrial zones. They (GE) are
taking money from the bank to support our power project.”
Aganga said the new initiative was in
furtherance of the ‘country-to-company’ partnership between the Nigeria
and the GE in the area of attracting investments into critical sectors
of the economy.
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