By Rafiu Ajakaye

LAGOS

 U.S. industrial giant General Electric (GE) planned to establish a $30 million plant in the southern Nigerian city of Calabar, the Nigerian presidency said Thursday.

"President (Goodluck) Jonathan welcomed GE’s plans to set up a facility in Calabar to manufacture components for the oil and gas sectors," presidential spokesman Reuben Abati said in a statement after a meeting between the Nigerian leader and visiting GE Vice-Chairman John Rice.

He added that Rice had told the president that GE had earmarked around $30 million to the development of the Calabar plant, noting that his company had already started training some Nigerians who will work at the plant abroad.

"[Rice] expressed his company’s appreciation for the support and encouragement being extended by the Federal Government to foreign investors and assured the president that fluctuations in global oil prices will not affect the commitment of GE to the country," Abati said.

The president, meanwhile, the presidential spokesman said, assured Nigerians that the economy would "remain stable", despite ebbing oil prices.

He said that the president said the federal government would do everything possible to maintain domestic economic stability, urging GE to maintain its confidence in the country.

"We promise our people that even with the drop in oil prices, the economy will be stable," Abati quoted the Nigerian president as saying.

"I urge you to maintain the confidence you have in this country before the oil price drop, and even expect better management from us," he added.

"So, I assure you, other investors in this country and all Nigerians that the government will do everything necessary to stabilize the economy and that the drop in the price of crude oil will not create so much distortion in our economy," Jonathan was quoted as saying.

The new plant will be the first to be established in Nigeria, which boasts Africa's biggest economy, by the American manufacturing giant.

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