General Electric Co. (NYSE: GE) and Nigeria signed an agreement for the U.S. company to build power plants as Africa's most populous nation continues privatizing and expanding its power generation capacity, Reuters said Monday.

Nigeria, which has Africa's second-largest economy, aims to increase its electricity generating capacity by 10 gigawatts, and GE will potentially invest 10 percent to 15 percent in individual projects.

The memorandum of understanding between Nigeria and the Fairfield, Conn., company is part of an effort to increase the number of Nigeria's natural gas-fueled power stations, though the company has yet to confirm either the type or number of plants to be built.

Nigeria, which has the world's seventh-largest natural gas reserves, hasn't been able to build up capacity for its 162 million citizens. The nation produces one-tenth of the 40,000 megawatts need to provide the populace with power.

Nigeria's lack of capacity has left much of the useful natural gas trapped underground.

President Goodluck Jonathan unveiled plans 18 months ago to privatize the nation's electric industry, with state-owned generation and distribution assets sold off; however, strife in Nigeria's northern sections caused by a violent Islamist insurgency and political disputes put other plans on hold.

The nation's 7.68 percent growth in gross domestic product was mostly fueled by non-oil sectors, according to Reuters.

GE shares closed up 27 cents to $20.05.