The Nigerian government has signed an agreement with Chinese state companies to build a $1.3bn, 700 MW hydroelectric power plant.

The investment is being made as the country looks to end chronic electricity shortages that are stunting Nigeria’s growth.

A loan from China’s Eximbank will pay for 75 per cent of the planned Zungeru hydro-electric power plant, while the Nigerian government has put up the rest of the cash.

Hydroelectric engineer
Nigeria produces only a few hours of electricity a day, forcing those who can afford it to rely on expensive diesel generators that drain billions of dollars from Africa’s second largest economy and discourage foreign investment.

The plant is scheduled to be finished in four years, although Nigerian projects usually run over time and over budget and many are never completed.

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