nigeria

• where is nigeria located?

  West of Africa, bordering the Gulf of Guinea in the south, the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in the north
• why is Nigeria important for Africa and the world?

  • has the highest GDP for Africa and 27th largest economy in the world (larger than Greece, Norway and the UAE)
  • has a large supply of oil (sell to the world) - countries who DO supply oil have large political influence on those who DON'T
  • has the 7th largest population in world (200 million Nigerians) = 3x bigger than Uk's population
• how has the industrial structure of nigeria changed?

  • In 2012, the employment structure of Nigeria was equally divided into primary, secondary and tertiary employment.
  • Secondary employment has been boosted by the growth of the oil and manufacturing industries.
  • Manufacturing now contributes 10% of Nigeria’s GDP.
  • Tertiary employment in Nigeria involves services such as finance and retail
• how does the manufacturing industry help to boost the economy of nigeria?

  manufacturing creates job opportunities for people of varying skill sets, increasing the workforce and consumer spending power. This promotes economic activities by increasing demand for goods and services across various industries
• what's the multiplier effect?

  the 'snowballing' of economic activity. e.g. If new jobs are created, people who take them have money to spend in the shops, which means that more shop workers are needed
• what are the advantages of Shell ( a TNC ) in nigeria?

  • Main source of investment in oil + gas explorations by supporting the construction of oil and gas platforms
  • Created employment opportunities - 6,000 direct jobs - contributed to the economy as 90% of employees are Nigerian
  • Many Nigerian companies have won contracts with TNC's - 20,000 indirect jobs
  • Government benefits from taxes to improve education, healthcare and services
  • Provided 3000 scholarships to secondary schools + universities, providing healthcare for 1/4 million people and micro finance schemes
• what are the disadvantages of Shell ( a TNC ) in nigeria?

  • Tankers transport oil to USA and Europe where it is refined - profits go to abroad not the host country
  • Can exploit the low wage economy and avoid paying local or even full taxes
  • Many oil spills - 9billion barrels worth since 1958 which damaged the Niger Delta environment + fisheries
  • Shell does gas flaring which is illegal - increased air pollution
  • Social unrest has lead to theft, sabotage, and violent crime
• how is trade changing between nigeria and the rest of the world?

  • Nearly half of Nigeria’s exports are to the EU, comprising commodities like crude oil, natural gas, rubber, cotton, and cocoa.
  • Most of Nigeria’s crude oil arrives in India, China, Japan, and South Korea.
  • Around 30% of Nigeria’s cotton is shipped to Australia and 15% to Indonesia.
  • Nigeria is a member of multiple trade associations, such as the Economic Community of West African States (ECOWAS), which has its headquarters in Abuja, and the Organization of the Petroleum Exporting Countries (OPEC)
• how does international aid help nigeria?

  • Nets for Life project provides education on Malaria and give mosquito nets to households to prevent the spread of the disease.
  • World Bank-funded loans to businesses to help diversify the economy away from being dependent on oil so that new companies and industries are developed.
  • The UK government has funded health and HIV programmes providing health and education in rural areas
• what impact has economic development had on the environment in nigeria?

  rapid growth of industry in Nigeria has led to the development of unregulated, large-scale industrial developments without planning permission. This has led to: toxic chemical discharge into drains and open sewers in cities such as Lagos and Kano. This poses a considerable danger to public health and ecosystems
• what impact has economic development had on the quality of life for people in Nigeria?

  • Improved infrastructure
  • More reliable supplies of water and electricity
  • More jobs in the formal sector, with reliable pay
  • Better diets have led to increased life expectancy