American industrial giant, General Electric (GE) has confirmed interest in Nigeria’s rail concession project.
The company indicated that it is willing to invest $2 billion in the Nigerian railway concession project worth about $2billion.
GE had in a statement on Monday disclosed that it has a “keen interest” in acquiring a Nigeria railway concession project worth around $2 billion.
The statement made available to Reuters said:
“Given the size and scope of the proposed project, it is likely that the debt and equity commitments required from lenders, consortium partners and other co-developers will be in the range of $2 billion or more.”
Nigeria’s President, Muhammadu Buhari had in his independence day address disclosed that GE would be investing $2.2 billion in the Nigerian economy.
The investment would be by way of a concession to revamp, provide rolling stock, and manage some of Nigeria’s railways.
Rail Concession Attracts Major Foreign Investment
The American conglomerate disclosed that the concession was already in the formal procurement process.
In recent times, Nigeria has seeking investment partners to overhaul its run-down railway system.
These systems were mainly built by the British colonial rulers before the Nigeria’s independence in 1960.
Nigeria has also signed two partnership deals worth around $5 billion with China Civil Engineering Construction Corp (CCECC).
CCECC, part of China’s state-owned railway construction firm, will modernize and build railways in the northern and southern Nigeria.
This was according to reports released from the Ministry of transport in Septmber.
General Electric said the rail concession project came to about $150 million.
According to a senior company executive at GE last week, the firm is currently spending the amount on capital expenditures in Nigeria.
Nigeria’s economy has witnessed a recession, the worst in over 20 years following a drop in oil revenues.
Lack of diversification of the nation’s revenue sources as well as a lack of critical infrastructure have been said to be the major reasons for the economic slump.