Nigerian energy firm Geometric Power signed a deal with US-based General Electric to develop a 1,080MW power plant in the country.
The first phase of the project will have a power generation capacity of 500MW, which will be built by 2019, at a cost of $800m.
Geometric Power CEO Bart Nnaji was quoted by Reuters as saying that UK-based Standard Chartered Bank will be acting as financial advisers for first phase development of the energy facility.
Nnaji said: "We have a 1,080MW project … (in partnership) with General Electric.
"The power goes to the national grid."
The African nation decided to open up the power sector to private companies two years ago. This plan backfired however, with power production in Nigeria dropping to almost 50% of the total capacity.
Construction for the new facility is likely to start from 2016, for which, Nigeria is in talks with investors from China, Europe and the US.
The facility will be developed in Abia State, south-east Nigeria, following its financial close by year-end.
Geometric Power owns 141MW captive power for industrial use in Abia State as well.
Installed power capacity in Nigeria fluctuates around 6,000MW to slightly more than 7,000MW.
The country, which has a population of around 170 million, suffers from severe power shortages, which had been hindering its development.
Russia’s Rosatom is also expected to assist the country with new nuclear power developments, for which discussions are going on.