Vice Chairman/CEO, General Electric, Mr. John Rice
With the opening of General Electric’s service shop in Calabar,
Cross River State, this could localise the company’s operations in
Nigeria and deepen its long-term commitment to the country, Ejiofor
Alike writes
The on-going transformation in Nigeria’s power sector got a boost recently when the General Electric (GE) of the United States established a service shop in Calabar as part of its commitment to localise its operations in Nigeria.
The on-going transformation in Nigeria’s power sector got a boost recently when the General Electric (GE) of the United States established a service shop in Calabar as part of its commitment to localise its operations in Nigeria.
Being among the company’s top 10 in Africa, Nigeria is no doubt
strategic to GE in its efforts to strengthen its position as a global
leader in the power sector. However, despite Nigeria’s strategic
position in the company’s global business, most of the decisions
affecting its Nigerian operations are taken in the company’s offices in
South Africa and Atlanta, Georgia in the United States.
Despite the large number of turbines supplied by the company to
Nigerian’s power sector, especially the National Integrated Power
Project (NIPP), the company has no maintenance factory for turbines in
Nigeria. On several occasions, these turbines were shipped outside the
country for repairs, with its attendant cost and capital flight.
This has also no doubt led to delay in business decisions that affect
Nigeria, with its implications on project delivery. Under the
privatisation programme of the Federal Government, the company was also
not known to have played a major role that was commensurate with its
position as a global leader in the power sector.
Specifically, GE was not known to have shown interest in the assets of the Power Holding Company of Nigeria (PHCN) that were privatised under the power reform programme. This was blamed on the absence of a regional office in Nigeria that is equipped to take strategic business decisions for the company.
Specifically, GE was not known to have shown interest in the assets of the Power Holding Company of Nigeria (PHCN) that were privatised under the power reform programme. This was blamed on the absence of a regional office in Nigeria that is equipped to take strategic business decisions for the company.
The opening of the service shop is the first step towards increasing
its presence in Nigeria, as it will create employment opportunities and
improve skills transfer and development especially artisan and
engineering skills.
As the global giant continues to increase its investments in Nigeria,
the service shop will open doors to the launch of similar projects
across Nigeria.
Speaking on the company’s commitment in Africa, the President and Chief
Executive Officer (CEO), GE West, East & Central Africa and Africa
commercial leader, Dr. Lazarus Angbazo, acknowledged that the company
was just beginning in the continent.
“Anyone who has been to Africa knows that there is great potential in
the region. We are witnessing the beginning of a huge transformation in
several African countries and GE is already a positive catalyst for
sustained development in many of these markets. We will continue the
effort by investing the right resources in the region, to enable us to
deliver for our customers and for the company,” he said.
Commenting on GE’s increasing focus on Africa, the Vice President and Chief Diversity Officer, Deborah Elam said the company had opened the door to the continent of Africa with the creation of the Global Growth and Operations (GGO).
GGO was created in 2010 to boost GE’s growth in the regions outside of the United States.
Commenting on GE’s increasing focus on Africa, the Vice President and Chief Diversity Officer, Deborah Elam said the company had opened the door to the continent of Africa with the creation of the Global Growth and Operations (GGO).
GGO was created in 2010 to boost GE’s growth in the regions outside of the United States.
“Putting a well-respected and highly seasoned GE corporate officer on
the ground and surrounding him with a top-notch team of leaders all at
the senior executive level is a significant statement. When GE appoints
big players to key positions that sends a signal to our stakeholders and
to the rest of the world that we are serious.
In addition, the pride that the African American Forum (AAF) in the
United States feels in terms of what is happening in Africa is
infectious. Given that this conversation started several years ago, AAF
members feel so good that progress is being made not only in terms of
GE’s philanthropic engagement but also in terms of real commercial
opportunity on the continent,” Elam said.
The West Africa Sales Manager for GE Energy, Elisée Sezan, also echoed similar sentiments.
“We have to make sure that we hire the best talent in Africa and that
we are willing to compensate them in the way that makes sense and works
for the region. Then, we have to figure out the best way to accelerate
their development so that we can take advantage of the opportunities we
have there. We may not have 10 people ready to be officers in Africa
today but GE do have the resources and the capabilities to grow
leaders,” she said.
Indeed, Thulisile Phirihad in “Renewing GE: The African Project” noted
that many of GE’s African employees were also excited about the new
developments in the continent, adding that “in general, employees
commented that the appointment of Angbazo to GE Africa’s commercial
growth leader made them feel not only that the voices of GE’s African
employees would continue to be heard, but that if they worked hard,
they, too, could be successful at GE”.
GE has a record of over 100 years of working in Africa as a provider of
localised global infrastructure technologies, services and solutions.
Nigerian Operations
Nigeria has broad needs that are critical for the country’s sustainable growth such as an improved infrastructure and access to world class technological solutions in key sectors- energy, healthcare and rail transportation.
Nigerian Operations
Nigeria has broad needs that are critical for the country’s sustainable growth such as an improved infrastructure and access to world class technological solutions in key sectors- energy, healthcare and rail transportation.
These needs can be partially and in some instances fully met by GE.
The company’s operations in Nigeria span more than 40 years, with over 100 customers in both the public and private sectors. The company’s portfolio of technology solutions is well aligned with Nigeria’s infrastructure needs, and is contributing to economic development and an improved quality of life for Nigerians.
The company’s operations in Nigeria span more than 40 years, with over 100 customers in both the public and private sectors. The company’s portfolio of technology solutions is well aligned with Nigeria’s infrastructure needs, and is contributing to economic development and an improved quality of life for Nigerians.
Today, the company’s electrocardiogram and ultrasound healthcare
equipment helps Nigerian doctors with early detection, health
maintenance and preventative measures.
The company’s rail locomotives use advanced monitoring technology to
move passengers and freight across Nigeria, reducing road and port
traffic.
GE’s superior oil and gas compressors and energy power turbines are helping to boost Nigeria’s oil and power-generating capacities.
GE’s superior oil and gas compressors and energy power turbines are helping to boost Nigeria’s oil and power-generating capacities.
The company’s diverse technologies are well positioned to help Nigeria become a top 20 economy by 2020.
In 2009, the company signed a landmark country-to-company agreement
with the Federal Government aimed at forging a strategic partnership
that will see the two parties working together on high growth
opportunities and investments in support of vision 2020.
As part of the country to company agreement, GE and the Federal
Government signed three Memorandum of Understanding (MoU) agreements for
the energy, healthcare and rail transportation sectors respectively.
These outline in more specific detail how GE will partner with the
Federal Government and other key stakeholders to deliver government’s
priorities in these sectors in line with Vision 2020.
GE’s Commitment
The company has expressed its commitment to supporting the sustainable development of Nigeria with advanced infrastructure technologies, services and solutions.
GE’s Commitment
The company has expressed its commitment to supporting the sustainable development of Nigeria with advanced infrastructure technologies, services and solutions.
Speaking with THISDAY in a recent interview, the Vice Chairman of GE,
who is the global Chief Executive Officer of the company, Mr. John Rice
noted that Nigeria was among the top 10 countries where his company was
experiencing growth in the emerging economies, with investments in
energy, oil and gas, and a number of other businesses.
He said with the smooth transition from the late President Musa
Yar’Adua’s administration to the Jonathan’ administration, coupled with
the abundant natural resources and a large population, Nigeria has all
the ingredients for a company like the GE to make long term commitment.
“It is no longer about commercial transaction. It is more about
establishing direct relations; making the right long-term commitments,
pooling resources; creating jobs and localising capability, so that we
are an important part of the economy in the provision of infrastructure
technology and services. For us, Nigeria has always been important and
also continues to be a major focus,” Rice said.
On concern by its Nigerian customers that it takes a very long time for
the company to deliver turbines, resulting in price escalation, Rice
said the escalation in the company’s contracts was tied to the price of
raw materials.
He also said the number of old orders could delay the delivery of new orders.
“Technically, we take at least 12 months to actually build the gas turbine for our clients. But there may be other customer orders that we already have and that could push the delivery time a little bit further. Then, we always have escalation in contracts tied to a basket of raw materials. If the price of raw materials goes up, then the price can go up. If it goes down, then the price can go down. So, we don’t just pass through only the increases; we also pass through any decreases. So, it is possible for there to be a price decrease too,” he added.
“Technically, we take at least 12 months to actually build the gas turbine for our clients. But there may be other customer orders that we already have and that could push the delivery time a little bit further. Then, we always have escalation in contracts tied to a basket of raw materials. If the price of raw materials goes up, then the price can go up. If it goes down, then the price can go down. So, we don’t just pass through only the increases; we also pass through any decreases. So, it is possible for there to be a price decrease too,” he added.
There is no doubt that the company is continuously increasing its
footprint while investing in local talent and giving back to the
communities it operates in.
It established a welding shed for customer consignments and sent welders for training on specialty connectors and pipes, delivering on Nigerian Content Act that requires welding to be performed exclusively in-country.
It established a welding shed for customer consignments and sent welders for training on specialty connectors and pipes, delivering on Nigerian Content Act that requires welding to be performed exclusively in-country.
Together with the Power Holding Company of Nigeria (PHCN), GE supplied
four gas turbines to Olorunsogo Power Station (formerly Papalanto) in
Ogun State.
The company also supplied 25 diesel locomotives to the Nigerian Railway Corporation and played a pivotal role in training and transferring skills to their employees.
The company also supplied 25 diesel locomotives to the Nigerian Railway Corporation and played a pivotal role in training and transferring skills to their employees.
In recognising the importance of a skilled healthcare workforce, GE has
provided expertise and equipment that combats dreaded diseases to Lagos
State University Teaching Hospital.
As a trusted and strategic partner to the Federal Government, GE’s
commitment to grow in Nigeria with Nigeria is demonstrated by its
holistic approach to investing in the country.
ThisDay
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