NIGERIA

• Location

  Africa, 4N 14E, west coast, borders Benin and Cameroon
• Nigeria

  NEE, has a vast development gap within the country
• Nigeria's importance globally

  • 70% of people are employed in agriculture
  • Largest population in Africa – 218 million
  • Only African country with large deposits of fuel
• Nigerian political links

  • African union – economic planning and peace keeping
  • ECOWAS – trading group for west Africa
  • CEN-SAD – similar to ECOWAS, supports sporting links
  • OPEC – aims to stabilise and regular oil prices
  • United Nations – contributes to peacekeeping
• Nigerian economy - Then

  Mainly agriculture – cocoa, timber, palm oil, ground nuts, cotton
• Nigerian economy - Now

  Oil (14% of country's GDP), 10th highest level of oil reserves
• Shell

  TNC, founded in Netherlands, oil company, get oil from Nigerian river delta, invest large amount into the area
• Shell - Benefits

  • Contribute to tax and export revenue
  • Provide direst employment for 65000 and 250000 indirectly
  • 91% of contracts went to Nigerian companies
  • Support growth of Nigeria's energy sector
• Shell - Costs

  • Oil spills cause water pollution and soil degradation
  • Oil flares release toxic fumes
  • Militant groups disrupt oil supply
  • Oil theft
• Influences of Nigeria's economy

  • English speakers – employed by TNC, more likely to get better jobs, aids globalisation, increases communications, easier to operate business
  • Growth in manufacturing – regular paid work builds local economy, more employment = more taxes, encourages foreign investment
  • Stable government – encourages foreign investment
  • Increased telecommunications – starts non oil based economy, encourages foreign investment
• Transnational Corporation (TNC)


  A large company that operates in several countries, HQ in a more developed country, operates in NEEs and LICs
• TNC locate in NEE to

  • Take advantage of low taxes – so they pay less
  • Spend less on wages – spend/lose less money
  • Cheaper materials – spend less money
  • Less strict environmental laws – spend less on clean up
• Advantages of TNC

  • Companies provide employment and skill development
  • Local companies benefit
  • More money spent in the economy
  • Investment in infrastructure
• Disadvantages of TNC

  • Poor working conditions
  • Management jobs go to foreign employees
  • Much of the generated profit goes to other countries
  • Poor pay for local workers
• HDI - Human Development Index

  Nigeria HDI in 2005 was 0.465, and 2013 is 0.5
• Reasons for rapid population growth

  • Migration – moving into cities from rural areas
  • Natural increase – birthrate exceeds death rate