Nigeria NEE

• Nigeria became the 21st largest economy in the world in 2014 and it's estimated by 2050 it could break into the top 20
• Nigeria


  • Located in West Africa
  • Borders Benin, Niger, Chad and Cameroon
  • Experiences a tropical climate with both rainy and dry seasons
• Nigeria's economy is rapidly growing with most of its revenues coming from the oil industry
• Nigeria supplies 2.7% of the world's oil and is the 12th largest producer in the world
• Nigeria has diversified into financial services, telecommunications and media
• In 2014, Nigeria had the highest GDP across the continent of Africa and the third largest manufacturing sector
• Nigeria's population has grown rapidly from 95.6 million to 182.2 million people
• Nigeria's urbanization has progressed from just under 30% in 1990 to almost 50% of the population living in cities
• There is a big development gap between Nigeria and the UK


  People in Africa lack quality health care and education as well as lower earnings
• There was widespread civil war and political instability in Nigeria and the rest of Africa in the 60s and 70s as well as conflict between different ethnic groups and religions
• The physical geography of Nigeria has influenced its development, with urbanization impacting development and GDP being higher in the south due to higher rainfall and greater resources, while the north experiences drought and desertification
• Nigeria's main source of income was from the export of primary products such as cocoa beans, timber, palm oil, nuts and cotton, but the discovery of oil in the 1950s led to rapid change to their economy
• Oil accounts for 14% of Nigeria's GDP and 98% of export earnings
• In 1999, Nigeria's economy was heavily reliant on primary industries such as farming, with few jobs in the secondary and tertiary sectors
• By 2012, there has been an increase in secondary industries such as oil production, manufacturing, construction, motor production and pharmaceuticals
• The tertiary sectors of communications, retail and finance have also increased in Nigeria
• Transnational corporations (TNCs)


  Companies that operate across the world and have their headquarters in their original country and place production factories in other countries
• Positives of TNCs operating in Nigeria

  • Creating jobs and giving people the opportunity to develop skills
  • Increasing the money in the economy
  • Further investment and local infrastructure in education
  • Local companies receiving orders from TNC companies
  • Earnings from exporting the products
• Negatives of TNCs operating in Nigeria

  • Poor pay and working conditions
  • Management positions don't always go to local people
  • Profits leave the country
  • Grants or tax incentives for the TNC are taken away from the country
• Shell Oil, also known as Royal Dutch Shell, is another Anglo-Dutch company that discovered oil in the Niger Delta in 1958, and its presence in extracting the oil has always been controversial
• Shell provides a major contribution to taxes and export revenue, as well as providing thousands of direct and indirect employment, with 91% of outsourcing contracts going to Nigerian companies
• Some of the problems caused by Shell's oil extraction include oil spills, flares, and militant groups disrupting supply and tapping into pipelines
• Industrial growth and urbanization in Nigeria have negatively impacted the environment through waste disposal, clearing of forests, and pollution from the mining and oil industries
• The Bodo oil spills in 2008 and 2009 are examples of a major oil disaster in Nigeria
• Nigeria's economic development has led to an improvement in the quality of life, as measured by increased life expectancy, reduced mortality rate, improved access to clean water, and increased education enrollment and mobile phone subscriptions
• However, more progress is required to reduce the development gap to high-income countries around the world