Nigeria case study

• Nigeria is the 12th largest oil producer in the world
• Nigeria has changed from focusing on primary industry (farming)to secondary industry (manufacturing)
• Manufacturing accounts for 10% of Nigeria’s GDP
• TNC’s such as Shell have moved in to help the area change
• 65,000 workers are employed in Shell
• 250,000 others employed in industry related to shell.
• Mobile phones are Nigeria’s largest export
• 91% of contracts Shell does with other industry goes to Nigerian countries
• Nigeria has the 21st largest economy and is an NEE
• Life expectancy has risen from 45 to 57
• Years in school has increased from 6.7 to 9.0
• HDI has improved from 0.47 to 0.5
• 60% of people still live in poverty, on less than $1 a day
• In the North the land is dry and it is not as easy to develop
• Government corruption means the money from economic development does not reach all areas.
• 80% of all of Nigeria’s forests have been lost to deforestation
• There are 10,000 illegal industries in Nigeria
• In Lagos, industrial development has led to toxic chemicals being released into the drains or sewers and poisonous gases being released into the air
• Serious incidents link to Shell’s involvement in the Niger Delta and oil spills and fires
• In 2008/ 2009, 2 major oil spills destroyed 20km squared of natural swamp
• Deforestation led to the disappearance of cheetahs, giraffes and 500 types of plant
• Land is lost through soil erosion
• Chemicals used to grow plants poison rivers
• Shell is a petroleum company with headquarters in the Netherlands
• Shell has extracted oil from the Niger Delta since 1958
• Oil spills create water pollution and oil flares from factories cause air pollution
• Oil supplies are disrupted by local militant groups which cause civil war in the area
• Most of the profits go back to the Netherlands
• Higher paid jobs are held by foreign nationals