December 5, 2014 – The Federal Government on Friday signed an agreement with General Electric (GE) to invest $1billion in Nigeria.
Speaking at the ceremony, Chairman GE, Mr. Jeff Immelt said from the total sum, $250 million will be invested in the construction of a multi modal manufacturing and assembly facility in Calabar, Cross River State.
The project is expected to make Calabar a regional hub for manufacturing, service and innovation, Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, said at the ceremony in Abuja.
The MoU, she said covers an additional $800 million which GE has pledged to spend over a period of five years in local sourcing of goods and services, labour, staff welfare and training.
The minister said the Nigeria content philosophy is now a key part of all projects in the oil and gas sector, adding that the event validates government’s “long held view that local content and localisation of the oil and gas industry is indeed achievable within the right regulatory framework.
“Clearly investments of this nature will translate into job creation. There are technology transfers, skill transfers, transfers of capabilities that were never there before as well as SME growth. So the multiplier effect of this sort of project is quite numerous,” the minister said.
Speaking at the ceremony, President Goodluck Jonathan assured Nigerians and foreign investors that the Nigerian economy would remain stable despite the drop in global oil prices.
“We promise our people that even with the drop in oil prices, the economy will be stable.
“I urge you to maintain the confidence you have in this country before the oil price drop, and even expect better management from us. Sometimes, it is when you are challenged that you do better than when everything looks good.
“So, I assure you, other investors in this country and all Nigerians that the government will do everything necessary to stabilise the economy and that the drop in the price of crude oil will not create so much distortion in our economy” the President said.