FG seals $1b deal with GE on manufacturing, assembly plant

Nigeria, on Thursday, recorded a milestone in her investment drive as the Federal Government and General Electric Company of the United States sealed a $1 billion investment deal on the establishment of a new manufacturing and assembly facility in Calabar, Cross River State.
The Minister of Trade and Investment, Olusegun Aganga, signed the Memorandum of Understanding on behalf of the Federal Government while the Global Chairman and Chief Executive Officer of GE, Jeff Immelt, led other top executives to sign on behalf of the company.
The new investment also takes care of additional investment in the service workshops in Port Harcourt and Onne, both in Rivers State, and is at the point of execution, according to Immelt.
The deal, which comprises $250 million capital expenditure and over $800 million incremental spending on local sourcing of goods and services, is expected to create 2,300 jobs and make Nigeria the regional hub for GE’s manufacturing service and innovation in Africa.
It will also support the company’s power generation, oil and gas production and exploration activities.
Speaking during the event, Aganga said that GE’s proposed investment in Nigeria was based on the country’s positive macroeconomic indicators.
He said: “This is the beginning of many more investments that will come from GE and we are committed to providing a conducing investment climate for both GE and other foreign investors.
“I want to congratulate GE for making the right decision by investing in Nigeria because our country has one of strongest macroeconomic environments with average Gross Domestic Product growth of seven per cent in the last 10 years.
“GE’s size of investment, which is $250 million, for the outset, and $1 billion over the next five years, is significant in every respect.
“It is far more important because the investment is in critical areas of our economy, which is power infrastructure.
“This investment will support our Industrial Revolution Plan, which is based on the areas where we have competitive and comparative advantage.
“There is no nation that has moved from being a poor nation to a rich one by exporting raw materials without a strong industrial base and efficient services sector.
“Nigeria has the raw materials and the market to become, not just number one in Africa, but among the top 10 globally.
“That is what our Industrial Revolution Plan seeks to achieve.
“It seeks to link those industries with industrial skills development and innovation.
“The days for exporting raw materials and jobs are gone.
“This is a new Nigeria and a new Africa.
“I am delighted that GE is leading that effort on behalf of the globally investors.
“Again, this investment is going into the Free Trade Zone, which is under my ministry.
“So, by investing in the Free Trade Zone, GE is supporting the Federal Government’s Policy for creating the FTZs, which is to industrialise the country, create jobs and generate wealth.
“Therefore, we are committed to making it far more efficient and supportive for foreign investors.”
Immelt said the investment was a demonstration of the company’s confidence in the Nigerian economy.
He said: “The time is now and the place is Nigeria.
“The government of Nigeria has made significant progress in its economy within the last few years.
“GE, as a global infrastructure company, will be investing $1 billion in Nigeria within the next five years, which will create about 2,300 jobs.
“We see a lot of opportunities in Nigeria.
“Where we are now is the point of execution.
“We are committed to playing our part in the sustainable growth of Nigeria and the positive impact this will have on Nigeria and the continent of Africa as a whole.”