GE, the digital industrial company has announced that it will be investing about USD2 billion in Nigerian railway concession project.
The concession will involve the revamping, provision of rolling stock and the management of Nigeria’s railways across the country, For many years, Nigeria’s railway sector has nearly gone comatose with little or no impact on the the economy.
In statement issued to Reuters, GE 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,”
It said the concession was in the formal procurement process.
Nigeria has been looking for partners to overhaul its ageing railway system, which was mainly built by British colonial rulers before the country’s independence in 1960.
The West African nation has also signed two deals worth around $5 billion with China Civil Engineering Construction Corp (CCECC), part of China’s state-owned railway construction firm, to modernise and build railways in the north and south of the country, the Nigerian transport ministry said last month.
Growth in Nigeria – an OPEC member whose economy has slipped into recession for the first time in more than 20 years after being hammered by low oil prices – has been stunted for decades by a lack of investment in roads and railways.
GE said the railway concession project came on top of around $150 million the firm was currently spending on capital expenditures in Nigeria as cited by a senior company executive last week.