Nigerian Power Companies Attract $480 Million in US Investments

Three Nigerian power companies have signed investment grants worth $480 million with the US Trade and Development Agency (USTDA), an indication that the new Africa’s largest economy is becoming an attractive investment destination for foreign investors despite increasing security threat.

BusinessDay said the companies were Royal Power Integrated and General Services limited, Honeywell Group limited and Benin Electricity Distribution Company.  With these grants the USTDA has committed to fund a feasibility study for a 275 megawatt gas-fire power plant that will improve electricity supply to Lagos.

“Nigeria is currently a destination of choice for American investors,” the United States Secretary of Commerce, Penny Pritzker, said during a bilateral meeting with the Nigerian minister of Industry, Trade and Investment, Olusegun Aganga, in Lagos on Thursday.  Pritzker had led a delegation of about 25 US investors to seek opportunities in the Nigerian power sector.

“We’re aware that there is an Industrial Revolution going on, which is a very good development,” he said referring to the ambitious plan the west African country has to increase it electricity supply.  He also added, “We would like to know more about it so we can be part of it.”

Aganga concluded, “This is the first time the American Secretary of Commerce is visiting Nigeria in 22 years.  Over the years, Nigeria has had a good economic relationship with the US, but today, it is more of how we can have a stronger, strategic and long lasting trade and investment partnership with the United States.”

Source: AFK Insider