A Review of the Nigerian Energy Industry

Kenya awards seven oil blocks to Nigerian businessmen

Crude-oil-thievesOscarline Onwuemenyi

10 May 2014, Sweetcrude, Abuja –
East African country, Kenya has disclosed that it has awarded seven of the newly discovered 46 oil blocks in the country, to Nigerian businessmen.

This announcement comes on the heels of Nigeria’s President Goodluck Jonathan visit to Kenya last year, where interested Nigerian investors were presented with the opportunities to invest in the country’s new oil blocks.

Kenya’s President, Uhuru Kenyatta, was also in Nigeria last week to discuss bilateral issues of the World Economic Forum, WEF, held in Abuja.

The Chairman of the Nigeria-Kenya Chamber of Commerce, Kiprono Kittony who disclosed this information at a meeting with prominent business men from both countries in Abuja noted that the joint Chamber of Commerce of both countries, which was inaugurated during a state visit of President Jonathan to Kenya in September 2013, had yielded desirable fruits as Nigerian investors have shown more interest in business opportunities in Kenya.

Kittony stated that significant business growths were recorded in the financial sector with three Nigerian banks now operating in Kenya.

He also noted that trade relations between both emerging markets has increased, with the number of Kenya Airways (Kenya’s national carrier) flights from Kenya to Lagos increased to 10 per week.

Plans are now underway by the national carrier to start a direct flight to Abuja from June 6, Kittony revealed.

In Nigeria, billionaire industrialist Alhaji Aliko Dangote, the Co-Chairman of the Joint Chamber of Commerce who was represented by his brother Sanni Dangote, noted that eight companies from Kenya had established offices in Nigeria, with Kenyan tea becoming more popular in the country’s food and beverage market.

In a related development, the Nigeria Export Promotion Council (NEPC) and its Kenya counterpart, pledged to explore the vast market opportunities in Africa to strengthen their country’s economies.

Kenya, East Africa’s largest economy, is arguaby Africa’s No.1 information technology hub, and with recent discovery of oil, the country’s economy is set for continuous growth. It also boasts a vibrant tourism sector. However, terrorist activities have dampened economic outlook in recent times.

On the other hand Nigeria, Africa’s largest economy and most populous country, is the chief exporter of crude on the continent. It boasts a vibrant economy, which has continued its diversification process, and increased foreign direct investment capable of ensuring sustained economic growth. However, Nigeria is also plagued by havoc (the latest being the case of the abduction of over 200 school girls by terrorist network Boko Haram in Chibok, a village in Borno state) caused by Islamic insurgents in its Northern region, and the perennial failure of its political class has stagnated economic development and increased poverty levels in the country.

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