The Federal Government of Nigeria has signed an approximately $900m memorandum of understanding (MoU) with Brazil-based Benco Energy to set up a 700MW power project in Bayelsa, a southern state in Nigeria.
The project will be constructed over a period of around three years.
The power plant will have two turbines running on gas, and two more in vapour.
Benco Energy Limited president Brazil Rodrigo Badew, was quoted by Vanguard as saying: "The location is Bayelsa because it is a terrain which is close to gas supply, a transmission line and a river.
"So we have all the right infrastructure that we need there and this location is perfect for our investment."
Minister of Power Nigeria Chinedu Nebo said: "We want to assure Benco that the terms of the MoU that we have signed today, we will do our best to implement them."
Previously, Electrobras from Brazil and the Nigerian Government had signed an agreement, which was aimed at helping the country to generate 10,000MW of power.
According to the minister, around 4,500MW power is being generated and distributed in the country.
"The transmission facilities are being beefed up to strengthen and make more reliable and stable the national grid to be able to wheel out more power," Nebo added.