Nigeria case study

• where is nigeria located

  • West Africa
  • Gulf of Guinea part of atlantic ocean
• what is nigeria's importance in africa

  • most populous
  • most economically developed country in africa
• what classification is nigeria

  • used to be LIC but due to recent economic development it is now a NEE
• what is the global importance of Nigeria?

  • 31st largest GDP in the world
  • 13th largest producer of oil
  • 2nd largest film industry nollywood
• what is the regonal importance of nigeria

  • highest GNP of the continent
  • highest agricultural output and highest number of cattle output in the country
• how much larger is nigeria's population than the uk

  3x bigger

  population of 200 million
• what is Nigeria's political context?

  • In the 1800s the country and it's people where exploited for recources and slavery
  • in 1960s - 70s they faced a civil war due to political instability when different fractions where fighting for control
  • it is now more politically stable and undergoes fair anf free voting meaning HICs such as USA and China have been confident to invest
  • Nigeria's govorment is extremely corrupt and often accepts money bribes
• what is Nigeria's social context?

  • diverse, multi cultural
  • over 500 cultures
  • many cultures leads to more conflict - the terrorist group boko haram hinders economic development
• what are the main cultural groups in nigeria?

  • Igbo
  • Hausa
  • Yoruba
• what is the cultural context of nigeria?

  • diverse culture
  • film, music, literacy
• what is Nigeria's environmental context?

  • tropical climate in the south with tropical rainforests
  • drier climate in the north with savannah grasslands - cattle grazing is the main industry here
• what is the nigerian life expectancy

  • 54
• what are the literacy rates in nigeria

  • aproximatly 63%
  • very low, especially in girls
• how has nigeria's industry changed overtime?

  • used to be mainly agriculture
  • has now shifted towards manufacturing and services due to urbanisation and developing technology and machinery
  • manufacturing and services have also grown due to Nigeria's increased political stablility, meaning more countrys have invested
  • oil was discovered in the niger delta in the 1950s meaning the oil and gas industry could now thrive and transformed the economy
• where and when was oil discovered in nigeria?

  • 1950s
  • Niger delta
• what are the challenges with the oil industry in nigeria

  • there is inefficiency at factories and there is a large domestic demand
• how and why is nigeria's economy unbalanced?

  • primary sector (agriculture) has decreased due to low pay and high manual labour
  • secondary sector (manufacturing) and services has increased due to better working conditions and pay
• how much of nigeria's gdp does agriculture, manufacturign and services account for?

  • agriculture - 22%
  • services - 50%
  • industrial/manufacturing - 27%
• why is the manufacturing sector growing?

  • (making new products from raw materials)
  • previously, the industry was hindered by the country's dependance of exporting raw materials
  • they produce things such as textiles, leather items, processed foods
  • it is growing due to increased market, cheap labour and improving infrastructure
• how does manufacturing affect economic development?

  • manufacturing has stimulated economic growth
  • people have a more secure income and an improved wellbeing - leads to the PME as more people want to buy things such as cars and clothes due to an increased disposable income
  • forein investment increases as other countries are attracted by a rapidly increasing industrial secotr
• what are TNCs?

  transnational corporations
• what are some TNCs which invested in Nigeria's oil and gas industry

  • Shell from the UK and Netherlands
  • Chevron from the USA
• how did TNCs help the oil and gas industry to develop in Nigeria?

  • In 1950s oil reserve was discovered in the niger delta
  • in 1970s, TNCs constructed oil and gas drilling platforms in the niger delta and connected them to pipelines where the oil would be pumped out to tankers which is shipoed to the uk and usa
• what is the NNPC

  • Nigerian National Petroleum Corporation
  • in order to keep more profits from the oil within the country
  • forms joint ventures with TNCs
• what is the environmental impact of oil in Nigeria?

  • oil spills damages nearby farmland and wetlands - wildlife is killed, no more crops can grow - destroys local employment opportunitys
  • oil pollution in the ocean kills fish
  • burning gas produces greenhouse gases which contributes to climate change
  • oil spills are caused by militant group sabotage, mechanical failure and operational error
• what are the advantages of TNCs?

  • they provide international links and access to the global markets
  • bring financial investment to the host country's economy
  • provides jobs for local people
  • higher wages (sometimes)
  • new technology which wouldnt be useually available
• disadvantages of TNCs?

  • exploit the workers and take advantage of them leading to low pay and poor workign conditions
  • profits leave the country and only benefit the HIC
  • powerful TNCs can influence and pressure govorments
  • raw materials are exported from LICs without being refined which reduces profit
• how are Nigeria's political relationships changing?

  • Nigeria was part of the British Empire, meaning it had political trade connections with the UK and other empire countries
  • It then gained independence in 1960, but remained part of the commonwealth meaning it still has connections to countries in africa, asia and the usa
  • Participates activly in the united nations
• how are nigeria's trading relationships changing?

  • mainly imports products from the EU and USA
  • Nearly 50% of Nigeria's exports are to the EU - things such as crude oil, cotton and coacoa.
  • Part of the economic community of west africa
  • They export cotton to barbados
• what relationship did Nigeria have with Britain

  • trade occured between britain and west africa for over 300 years
  • Britain enslaved African people
  • When slavery was abolished, the trade turned into palm oil for britain
  • 1800s - nigeria was part of british empire - gained independance in 1960
• how are nigeria's trade relationships changing

  • Nigeria now conducts most of its trade with EU, USA, India
  • oil is its main export
• what influence does china have on nigeria's economy?

  • China is Nigerias leading import partner
  • China has invested heavily in Nigeria
  • China has contructed a large railway in Nigeria
• why does nigeria need aid?

  • it has a significant inequality of wealth within the country - 1/3 of nigerians live in poverty
  • has a very low life expectancy
  • high infant mortality rate
  • high death rate
  • terrorism groups dominate the north
• where does most of Nigeria's aid come from?

  UK and USA

  • Ngos
  • charities
• what are the issues of giving aid to nigeria?

  • the govorment is corrupt, meanign the aid isnt given to the right people
  • Nigeria's govorment is overly reliant on aid and depends on it rather than using it to help them develop sustainably
  • there have been claims that aid has been used to supply the navy
  • aid doners may have political influsence over who the aid goes to
  • aid doners may only be using the aid to promote themselves
• how does Nigeria benefit from aid?

  • Nets for Life project provides education on malaria and gives nets out to prevent the spread of the disease
  • the world bank funed loans go to businesses to help diversify the economy so they are not so reliant on oil
  • Uk gov has funded hiv programmes which help health education in rural areas
• how did nigeria get in debt?

  • in the 1980s and 1990s many lics such as nigeria faced a debt crisis as they caught caught in a cycle of debt repayment
• How did nigeria get out of debt?

  • In 2005, the wealthiest countries decided to give debt relief for aproximatly 40 highly poor countries, includign nigeria
  • this allowed nigeria to focus on more domestic economic development
• Does Nigeria still need aid?

  • Nigerias economy has transformed into NEE
  • aproximatly 60 million nigerians still live in poverty which is why countries such as the UK still give aid
  • UK also gives aid to help combat terrorism in the north east and stabilise the regeon
  • however some argue that as nigeria is now able to fund programmed such as its space programme meanign it no longer requires aid
• what are the environmental impacts of mining and oil extraction?

  • Oil spills destroy equatic ecosystems
  • burning fossil fuels such as oil causes air pollution
  • mining causes osil erosion
  • In 2008, there was a rupture in an oil pipeline in the Niger Delta, spilling over 100,000 barrels of oil a day - no attempt was made to clean it up, meaning oil collected in creeks, infiltrated farmland and entered the water table