GE, Federal Republic of Nigeria sign infrastructure development agreement
GE and the Federal Government of Nigeria have signed a landmark "company-to-country" agreement to foster collaboration between organizations driving critical infrastructure projects across the country...
• Landmark agreement sets the stage for sustained development of critical infrastructure in Nigeria
ABUJA, Nigeria, May 26, 2009 -- General Electric Company and the Federal Government of Nigeria have announced the signing of a landmark "company-to-country" agreement aimed at promoting collaboration between GE and Nigerian public and private sector organizations that are driving critical infrastructure projects across the country.
Nigeria's Attorney General and Minister of Justice Michael Kaase Aondoakaa and GE Vice Chairman John Rice, signed the agreement today at a ceremony held in Abuja, Nigeria. It encourages active collaboration between the two parties to use advanced technologies and solutions in a way that enhances economic development and competitiveness of the Nigerian economy. It is the first agreement of its kind for both the Federal Republic of Nigeria and GE.
The agreement strengthens Nigeria's existing commercial relationship with GE, expanding the possible opportunities to include railway infrastructure development and rehabilitation, oil and gas processing, distribution and transportation, electric power generation, water and wastewater treatment, healthcare, aviation and integrated safety and security systems.
The GE delegation also held talks with President Umaru Yar'Adua at the Presidential Villa in Abuja. The President said the partnership with GE was aligned with Nigeria's goals for growth -- "GE's leadership technology and management processes will help Nigeria meet the challenges before us and enhance our investments in critical infrastructure. This will result in macroeconomic stability and successful infrastructure development across the nation," said President Yar'Adua.
"GE has enjoyed an excellent relationship with Nigeria for many years, providing support to the nation's infrastructure strategy. This agreement would further strengthen our long standing relationship with Nigeria and is part of our contribution towards meeting the country's Vision 2020," said Rice. "This partnership will also give GE the opportunity to strengthen our own local capabilities, enhancing our ability to serve the Federal Republic of Nigeria as the nation drives its technology and education strategies."
"Nigeria is focused on fostering stable, healthy and safe communities for its citizens," said the Attorney General and Minister of Justice. "A partnership with GE will enable Nigeria to leverage their infrastructure competencies and drive both better economic and employment opportunities for Nigeria's future," said Mr. Aondoakaa.
In addition to leveraging GE's infrastructural competencies, the two parties are agreeing to explore creating technical and managerial employment opportunities for Nigerians as well as bring GE's renowned management and leadership training to Nigeria's business community who will drive the next wave of high-growth opportunities for the country. In addition, another focus will be joint initiatives designed to heighten Nigeria's reputation globally through a solid compliance and integrity program.
The agreement also envisions cooperation in the establishment of an investment framework that will position Nigeria as a regional export center for GE's infrastructure technologies.
GE has had a long-standing presence in Nigeria in transportation, energy, aviation, healthcare and oil & gas, among other sectors. Today, there are almost 200 GE employees in Nigeria based in offices in Lagos, a GE Oil & Gas Service Center in Port Harcourt and a facility in Onne Port.
GE Transportation recently announced it had signed a Letter of Intent (LOI) with the Nigerian Federal Ministry of Transportation, on behalf of the Nigerian Railway Corporation, to deliver 25 new locomotives in 2010 for freight and passenger transport.
In addition, GE Energy has a history of supplying technology for power generation projects, and of the more than 200 GE gas turbines currently installed in Africa, more than half are located in Nigeria.
In the aviation sector, GE Commercial Aviation Services (GECAS) and GE Aviation have a strong presence among leading Nigerian airlines. GE Commercial Aviation Services (GECAS) currently has seven aircraft on lease to Virgin Nigeria Airways and Bellview with a value of approximately $100 million and recently concluded the sale of four B737NG series aircraft to Arik Air. In addition, GE Aviation has sold about 95 engines (CF34, CFM56, GEnx, and GE90) in Nigeria since 2006 with a list value of $1 billion.
GE has been growing significantly in Nigeria and across Africa. In 2008, GE's revenues in Africa were US $3.5 billion, an increase of almost 40% over 2007. The company has been in Africa for more than 100 years and today is active in more than 35 countries with around 1,500 employees on the continent. GE has offices in Egypt, Kenya, Algeria, Angola, Nigeria, and South Africa, with facilities for GE's Oil & Gas and Energy businesses in Algeria, Angola and Nigeria, as well as a manufacturing plant for GE Security in South Africa.
GE is a diversified global infrastructure, finance and media company that is built to meet essential world needs. From energy, water, transportation and health to access to money and information, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide.