17. Nigeria Flashcards
What is Nigeria’s general climate?
- tropical climate with variable rainy and dry seasons
- hot and wet close to coast/south, more dry inland
How much oil does Nigeria supply for the world?
2.5 %
What is Nigeria’s importance in Africa?
- largest economy/highest GDP in Africa
- has highest agriculutural output
- largest populated african country
- 3rd largest manafacturing sector
What are some countries/companies investing in Nigeria?
- South Africa invested in banking and buildings
- China investing in construction in the capital, Abuja
- American firms GE (power plants), Oracle, IBM and Microsoft
What are some divides in Nigeria?
- due to economic inequality between more prosperous South and North, there are new religious and ethnic tensions
- such as Boko Haram rise
- has negative effect on productivity, investment and unemployment
What are the reasons between the divide in the North and South of Nigeria?
- GDP is higher in the south as it has things like the Niger Delta, oil reserves and more rain
- North has drought, lack of resources and rise in Boko Haram
What are 5 political links Nigeria has?
- ECOWAS - trading group for west african countries
- UN - contributes large numbers of troops
- OPEC - oil exporting countries, stabilises prices
- CEN-SAD - similar to ECOWAS
- African Union - economic planning and peacekeeping group
- it is a leader in Africa
What are Nigeria’s main imports?
- phones from China (for emerging middle class)
- cars from Brazil and USA
- rice and wheat
- mainly from China, EU and USA
What are Nigeria’s main exports?
- crude oil, refined petroleum, natural gas, rubber, cocoa and cotton
- to EU, USA and India
What is Nigeria’s LARGEST export?
- Nigeria’s largest export is crude oil
- it is better quality than oil from the middle east
- used to be mainly to USA, but shale oil was found, now mainly to India
How big are agriculutural exports in Nigeria?
- crude oil reduced importance of agriculutural exports
- employs 37% of population
- customers are Austrailia and Indonesia
- only Ghana and Ivory Coast in Africa
How much does oil account for in %GDP and %exports in Nigera?
- 10% GDP
- 86% Export earnings
What is the general change in Nigeria’s economy in terms of sectors?
- employment in agriculuture has declined as machinery is being used more commonly and there is more competition (22% of GDP)
- industrial sector has grown to 18% GDP but has limited effect on umemployment as many jobs are mechanised
- service sector has rapidly grown to be 57% of GDP and 60% of employment (especially finances and retail)
How much is manafacturing of Nigeria’s GDP?
10%
How has manafacturing affected economic development? (Nigeria)
- lead to more demand for home market(cars, houses) due to people have stable income
- more stable income + more people employed means more tax revenue for the government
- Manafcturing stimulates industries that produce close products (e.g robots for the factories)
- industrial sector growing attracts FDI
- oil processing has lead to many chemical-by products
Why do TNC’s relocate to foreign countries?
- tax incentives
- cheaoer labour
- access to a wider market
- laxer environmental laws
What are some advantages of TNC’s for foreign countries?
- export revenues earned
- local companies benefit off orders
- invesment by companies into local infrastructure and education
- more money spent in economy
- provide employment
What are some disadvantages of TNC’s for foreign countries?
- local workers are sometimes poorly paid
- bad working conditions
- management jobs will usually go to foreign workers not locals
- profit generated goes abroad
- opportunity cost of grants and subsidies given to TNC’s
What benefits has Shell Oil provided to Nigeria?
- major contributions in taxes and export revenue
- direct employment to 65,000 workers and 250,000 in supporting industries
- 91% of Shell contracts to Nigerian companies
- suports Nigera energy sector growth
What problems has Shell Oil given to Nigeria?
- oil spills caused water pollution and soil degradation leading to decreased fishing and crop yield
- oil flares send toxic fumes into air
- oil theft and sabotage are big problems reducing production levels and losing the government and shell billions of dollars per year
What are the 2 types of aid?
- emergency aid - follows natural disasters or war (essentials )
- developmental aid - long term support from gvnmts, charities and more to increase quality of life
How many people in Nigeria live on under $1 a day?
- 100 million (60% of population)
How much aid does Nigeria receive and where from?
- almost 5 billion
- 0.5% of GNI
- from UK, USA and World Bank
What factors prevent aid from being used effectively in Nigeria?
- corruption in government and individuals
- government may divert money for other purposes such as army
- donors have political influence over aid
- money may be used to promote commercial self interest of donor
How has aid benefited Nigeria?
- aid from USA and UK helps to educate about HIV
- World Bank approved $500 milion development project funding ( to reduce overdependce on oil)
Describe the Aduwan Health Centre Case Study Nigeria (Aid)
- community in Aduwan had no health centre
- area has high HIV/AIDS and high infant mortality
- educates mothers about importance about vaccination
- tests for HIV and other infections
- immunises children
How has industrial growth affected Nigeria’s environment?
- fast unregulated growth of industry has meant environmental problems (5000 legal industrial plants , 10,000 illegal small scale industries)
- many harmful pollutants go straight into rivers and open drains (Lagos), they harm people and the ecosystem
- industrial chimneys emit poisonous gases that can affect human respiratory systems
- desertification is a major problem due to large scale dams and irrigation
- 70-80% of land has been destroyed due to logging, agriculture, urban expansion etc.
How has urban growth affected Nigeria’s environment?
- there are large squatter settlements in most Nigerian cities
- services have not been able to keep pace with economic growth
- waste disposal is a major issue
- traffic congestion is a major problem in most Nigerian cities (leading to high levels of exhaust emmissions)
How was commercial farming/deforestation affected Nigeria’s environment?
- settlements and roads have destroyed habitats and added to CO2 emmissions
- many species have been lost, 500 types of plants
- commercial farming has lead to land degradation
How has mining and oil extraction affected Nigeria’s environment?
- tin mining has lead to soil erosion and pollution of water due to chemicals
- oil spills in the Niger Delta have lead to massive impact on freshwater and marine ecosystems (oil spills cause fires which can lead to acid rain)
What is the Bodo Oil spills case study?
- 2008/09 large oil spills devasted many farmers and fisherman income around Bodo (Niger Delta)
- leaks in pipeline meant 11 million gallons of crude oil spilt over 20km2
- Shell payed £55 million to compensate those in Bodo and agreed to clean up the fishing grounds and swamps
- money will be used to improve health clinics and schools
What has been the trend in HDI for Nigeria?
- 2000 Nigeria was in the least developed nations for wealth and education
- 2011 - one of the highest average HDI improvements in the decade
- OL is increasing as economic development continues
why have nigerian people’s QOL not increased as much as it should have?
- oil wealth has not been used effectively
- gap between rich and poor has increased
- corruption is a major factor
- oil wealth has not been used to diversify economy as it should have (bad as now shale is coming)
