General electric (GE), a U.S.-based industrial firm, plans to invest about $150 million in Nigeria by the end of 2017, the company’s chief executive told the FT summit in London.
Jay Ireland said the Nigerian investment was part of a $2 billion planned spend in Africa in coming years and will also be invested in the country’s oil and gas industry that has seen a slowdown in recent years as crude oil prices dropped in the global market and militants attacked installations back home.
“There are development projects where we are investing,” Reuters quoted Ireland telling delegates at the FT Africa Summit.
The $150 million investment by GE is however a pale shadow of what Nigeria’s President Muhammadu Buhari said the company will invest in the country.
President Muhammadu Buhari, had on Saturday in a speech marking Nigeria’s independence day, said GE was “investing $2.2 billion in a concession to revamp, provide rolling stock, and manage” some of the country’s railway lines, Leadership reported.
Last month, Nigeria’s Minister of Transportation, Rotimi Amaechi, told News Agency of Nigeria in an interview that negotiations were ongoing for the concession of narrow gauge lines across the country to GE.
“The entire western and eastern lines will be rehabilitated but we will concession the project to GE and they are bringing in 2 billion dollars to embark on the project,” Amaechi said, adding that the concession would be for a period of 20 to 25 years.
It’s not clear where Buhari and his transport minister got the $2 billion figure.
GE, which has operated in Afr
ica for over 100 years, committed at the first US-Africa Business Forum in 2014 to invest $2 billion in facility development, skills training, and sustainability initiatives across Africa by 2018.
“GE is proud to remain a steadfast partner in Africa’s sustainable growth and will continue to invest in people and infrastructure across Africa,” Ireland told the second US-Africa Business Forum last week.