Oil

• Why would a TNC set up in an LIC?

  • Tax incentives
  • cheap labour
  • less strict environmental laws
  • access to a wider market
• Unilever in Nigeria:

  • Employs 1500 people in Nigeria
  • Improves peoples quality of life
  • Aimed at growing the Nigerian market
  • Voted 2nd best place to work in Nigeria in 2014
• Shell in Nigeria:

  • Energy company
  • Severe environmental impact in Nigeria
• Environmental impact of shell

  • Bodo oil spills in 2008 and 2009
  • Caused 11 million gallons of oil to spread over 20km^2
  • left 75% of rural population without clean water
  • crops and fish killed which affected the livelihood of the Ogoni tribe
• Oil and gas account for:

  • 95% export earnings
  • 14% GDP
• Solution to oil dependency in Nigeria:

  • increase agriculture
  • build a new airport at Dutse so goods can be exported
  • Nigerian companies processing food like rice to add value to products