Nigeria

• Nigeria is a country in West Africa, Nigeria borders Benin, Niger, Chad and Cameroon. Nigeria extends from the Gulf of Guinea in the south to the Sahel in the north. It has tropical climate with variable rainy and dry seasons in different parts of the country.
• Nigeria is a newly emerging economy (NEE). This means that it is one of a number of countries experiencing a period of rapid economic development.
• In 2020, Nigeria was ranked 27th by GDP (UN).
• Nigeria supplies 2.2% of the world's oil - the 15th largest producer. Much of the country's economic growth has been based on oil revenues.
• It has developed a very diverse economy which now includes financial services, telecommunications and the media. In common with cities around the world, the centre of Lagos is a thriving global economic hub.
• Politically, Nigeria has a significant global role. It has been a major contributor to UN peacekeeping missions around the world.
• Nigeria's regional importance

  Nigeria has one of the fastest growing economies in Africa. In 2020 it had the highest GDP in the continent and the third largest manufacturing sector. With a population of more than 206 million people, it has the largest population of any African country.
• Nigeria


  • Low levels of productivity
  • Widespread issues over land ownership
  • Highest farm output in Africa
  • About 35% of population employed in agriculture
  • Over 19 million cattle, the largest number in Africa
• Nigeria could lead the way in Africa's future development
• Nigeria's problems


  • Lack of infrastructure
  • Poor roads
  • Frequent power cuts
• Former US President Barack Obama: 'Nigeria is 'critical to the rest of the continent and if Nigeria does not get it right, Africa will really not make more progress''
• In the 1960s many African countries gained their independence. Nigeria became fully independent from the UK in 1960. However, bitter power struggles resulted in a series of dictatorships and a civil war between 1967 and 1970.
• Lack of political stability affected Nigeria's developemnt and led to widespread corruption. It is only since 1999 that the country has had a stable government.
• Several countries are now starting to invest in Nigeria:

  • China is making major investments in construction in the capital, Abuja.
  • South Africa is investing businesses and banking.
  • American companies such as General Electric are investing in new power plants.
  • American companies such as Walmart and IT giants IBM, Microsoft and Oracle are operating in Nigeria.
• Nigeria is multiethnic, multifaith country. Ethnic groups in Nigeria include Yuroba (21% of the population), Hausa and Fulani (29% of the population) and Igbo (17%) as wekk as many smaller groups.
• Christianity, Islam and traditional African religions are practised widely. This social diversity can be considered to be one of Nigeria's great strengths, but it has been a source of conflict.
• In 1967 the Igbo-dominated south east tried to separate from Nigeria to become the Republic of Biafra. As a result, the country was torn by civil war until the Biafrans were defeated in 1970.
• More recently, economic inequality between the north and south of Nigeria has created new religious and ethnic tensions, such as the rise of the Islamic fundamentalist group Boko Haram. These tensions have created an unstable situation in the country, and has had a negative impact on the economy, with a reduction in investment from abroad and a rise in employment.
• Nigerian music is enjoyed across the continent and beyond and they include Fela Kuti and Afrobeat.
• Nigerian cinema - known as 'Nollywood' - is the second largest film industry in the world, ahead of the United States and behind India.
• In literature, well-known Nigerian writers include Wole Soyinka, Chinua Achebe, Chimamanda Ngozi Adichie and Nnedi Okorafor.
• In sport, the Nigeria football team has won the African Cup of Nations three times, most recently in 2013. Nigeria finished 3rd in 2019. Several Nigerian football players have played for Premier League sides including Victor Moses, John Obi Mikel, Wilfred Ndidi and Nwankwo Kanu.
• Nigeria's natural environment form a series of bands across the country. This reflects the decreasing rainfall towards the north in West Africa. These environmental regions extend to the east and west of Nigeria. To the north is the Sahel and the Sahara Desert.
• Pests and disease affect different parts of Nigeria. The tsetse fly, which is common in the warm and humid south, transmits a parasite that can be fatal to livestock. Therefore, cattle cannot be kept in this part of the country.
• Recent deforestation has resulted in Nigeria losing 14% of its tropical rainforests between 2005 and 2020. This is largely due to population growth, agricultural expansion of cocoa cultivation, logging and mining.
• The oil industry has been responsible for considerable environmental degradation, especially in the Niger Delta, as a result of forest fires and oil spillage.
• Traditionally, primary products had been Nigeria's main source of income. Agricultural products like cocoa, timber, oil palm, groundnuts and cotton were its main exports.
• The discovery of oil in the Niger Delta in the 1950s led to a big change in Nigeria's economy. Today oil accounts for about 9% of the country's GDP and about 90% of its export earnings. Nigeria has the world's 10th highest level of oil reserves. At the present rate of production, and at current consumption rates, it has over 200 years' supply left.
• Employment in an agriculture has steadily declined due to increasing use of farm machinery and competition from other forms of employment, offerinf better pay and working conditions. Today, agriculture contributes 22% of Nigeria's GDP.
• Whilst the industrial sector now accounts for about 27% of GDP, Nigeria has the fastest growing industrial sector in Africa, overtaking South Africa.
• Rapid growth in communications, retail and finances has led to an expansion of the service sector, which now employs 53% of workers and accounts for 50% of the country's GDP.
• Why is Nigeria's economy developing?:

  • Rapid advances in technology
  • Investment in science and technology training - Nigeria's huge population is seen as a potential asset for the country
  • Information technology is beginning to drive the economy rather than oil
  • Increased use of telecommunications - Nigeria is able to benefit from global finance and trade
  • Many people speak English, giving potential for growth in telecommunications
  • Greater concern for the environment
  • Rapid advances in technology
• Manufactured goods include:

  • Processed foods
  • Textiles
  • Leather items
  • Soaps and detergents
• The growth of manufacturing in Nigeria has stimulated economic development:

  • Regular paid work gives people a more secure income and provides an home market for purchasing products
  • Manufacturing industries stimulate growth through close links with each other
  • As industries grow, more people are employed and revenue from taxes increases
  • A thriving industrial sector attracts foreign investment which stimulates further economic growth
  • Oil processing has created chemical by-products. This has led to the growth of a huge range of chemical industries
• Transnational companies locate in foreign countries in order to take advantage of:

  • Tax incentives
  • Laxer environmental laws
  • Cheap labour
  • Access to a wider market
• Advantages of TNCs in Nigeria:

  • Companies provide employmeny and the development of new skills
  • More money is spent in the economy
  • Investment by companies in local infrastructure and education
  • Other local companies benefit from increased orders
  • Valuable export revenues are earned
• Disadvantages of TNCs in Nigeria:

  • Local workers are sometimes poorly paid
  • Working conditions are sometimes very poor
  • Management jobs often go to foreign employees brought in by the TNC
  • Much of the profit generated goes abroad
  • Grants and subsidies used to attract TNCs could have been used to invest in Nigerian industry
• Shell plc is one of the world's largest oil companies, with headquarters in London. Since the discovery of oil there in 1958, its operations in the Niger Delta have been controversial.
• The swampy river delta is one of the most difficult places in the world to extract oil. As a TNc, Shell has been able to invest huge amounts of money and expertise into extracting oil here.
• Oil is extracted from under the sea as well as in the Niger Delta. Nigeria is one of the few oil-producing countries that is capable of increasing its output.