3.2.2- Case Study on an NEE- Nigeria Flashcards
Where is Nigeria located?
Nigeria is located in the Northern Hemisphere, just north of the Equator. It lies to the east of the Prime Meridian and is bordered to the South by the Atlantic Ocean.
What is the regional importance of Nigeria?
In Africa, Nigeria has the highest GDP
Nigeria has one of the fastest growing economies in
Africa
It experiences a tropical climate with variable rainy and dry seasons, allowing it to have the highest farm output in Africa
Nigeria is the most populous African nation with approximately 202 million people and one of the largest youth populations in the world
It has a diverse economy including literacy, financial services, telecommunications and media
Imports telephones
What is the global importance of Nigeria?
Nigeria’s GDP was $440 billion and GDP pp $2085 in 2021
Nigeria is one of the world’s biggest oil exporters and Africa’s biggest oil producer, pumping out around 2 million barrels each day
Its music industry was worth $73 million in 2021
Nigerian film industry also known as “Nollywood”: has overtaken Hollywood to become the world’s second largest film industry, behind India’s Bollywood
It is the 5th largest contributor to UN peacekeeping
Main exports are rubber, cocoa, cotton and oil
Importance of oil in Nigeria?
- Contributes to 14% of the country’s GDP
- “Sweet oil” as it is low in sulfur, making it of higher value than middle Eastern oil
- Production rate of 2 million barrels a day
Why is Nigeria’s dependence on oil bad?
Nigeria’s dependence on oil is vulnerable due to world oil prices and the rise in renewable energy technologies so Nigeria’s economy is becoming more balanced with a shift from primary employment to growth in secondary and tertiary industries
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 can benefit from global finance and trade
- Many people speak English- giving potential for growth in telecommunications
Greater concern for the environment
What is manufacturing?
Manufacturing involves making products from raw materials, on a large scale, often in factories
Manufacturing in Nigeria?
- Manufacturing accounts for 10% of Nigeria’s GDP
- Australia and Indonesia are the biggest customers of Nigerian cotton
- Cocoa and rubber are exported to Barbados
- It also manufactures processed foods, textiles, leather goods, soaps and detergents
How has the growth of manufacturing led to economic development in Nigeria?
- Regular paid work provides a secure income
- More people are employed
- Revenue from taxes increase: providing education, healthcare and infrastructure
- A thriving industrial sector attracts foreign investment
- This stimulates further economic growth
What are the environmental impacts of manufacturing in Nigeria?
However, habitats can be destroyed and deforestation occurs to extract the materials
What is Unilever?
Unilever is a British-Dutch multinational consumer goods company that has been operating in Nigeria since 1923.
Social impacts of Unilever in Nigeria?
POSITIVE: 3000+ women entrepeneurs trained through the ‘Shakti’ programme, helping them distribute Unilever products and earn and living
NEGATIVE: Child labour reported in palm oil plantations that supply Unilever, particularly in Cross River State. Workers in factories in Lagos and Agbara report poor working conditions, long hours and a lack of job security
Economic impacts of Unilever in Nigeria?
POSITIVE: Provides over 5,000 direct jobs in Nigeria factories and offices, plus 10,000+ indirect jobs through supply chains
Factory workers ears as little as 30,000 (nigerian currency) per month (£30), barely above Nigeria’s minimum wage 33,000 (nigerian currency), which is £33.
NEGATIVE: Over 80% of Unilever’s profits are sent back to the UK and Netherlands, limiting reinvestment in Nigeria
Environmental impacts of Unilever in Nigeria?
POSITIVE: Unilever has committed to 100% recyclable plastic packaging by 2025, aiming to cut plastic waste
60% reduction in carbon emissions from Unilever’s Nigerian factories between 2010-22
NEGATIVE: Deforestation linked to Unilever’s palm oil supplies in Cross River State ,contributing to 10,000 hectares of forest loss annually.
What is an example of a TNC in Nigeria?
Shell- an Anglo-Dutch company with its headquarters in the Netherlands
It is one of the world’s largest oil companies
What are the benefits of Shell in Nigeria?
Gives 91% of its contracts to Nigerian companies
Making major contributions to taxes and export revenue
Providing direct employment for 65,000 workers and a further 250,000 jobs in related industries
Supports the growth of Nigeria’s own energy sector
Shell paid $20 billion in corporation tax in 2013
What are the consequences of Shell in Nigeria?
The cost of oil has created tensions and environmental issues:
- Most people who live in the area depend on either farming or fishing to make a living
-Oil spills have polluted the surrounding waters; harming biodiversity and fish yields
- Caused soil degradation, which has reduced agricultural production
- Militant groups disrupt the oil supply in the delta by destroying well heads
- Frequent oil flares send toxic fumes into the air to burn off the gas from the oil
This affects people’s health and contributes to global warming
- Oil theft and sabotage are big problems costing TNCs and the government billions
- Workers conditions are often sub-par and TNCs have been known to use child labour in factories
- Oil pollution from tankers off-shore also damages the marine ecosystem and kills fish and other marine wildlife
What are Nigeria’s politcal links in the wider world?
African Union- economic planning and peacekeeping group, Nigeria is in alliance with Niger, Chad, Benin and Cameroon
ECOWAS (Economic Community of West African States)- trading froup with headquarters in Abuja
United Nations- Nigeria recently given award for contribution to UN peacekeeping movements
OPEC (Organisation of Petroleum Exporting Countries)- aims to stabilise the price of oil and ensure a regular supply
World Trade Organisation (WTO)- Nigeria has been a member of WTO since 1995, which has supported Nigeria in streamlining its tariff systems and promoting free trade.
Political context of Nigeria?
Nigeria was part of the British Empire and development was held back until 1960 when Nigeria gained independence
Civil war between 1967 and 1970 further hampered the development
Since 1999 the country has a stable government
Several countries are investing in Nigeria
- South Africa investing is banking, and USA in Microsoft, IBM and Walmart
Oil reserves help’s Nigeria to have political influence globally
Chinese links are growing, with investments such as US$12 billion to construct a new 1,400km railway
Social context in Nigeria?
Multi-ethnic and multi-faith society
Three tribal groups dominate Nigeria, the Hausa in the north and Igbo and Yoruba in the south
Huge differences in levels of wealth and development
GDP is higher in the south due to oil reserves and investments
Urban areas have a greater share of public services and facilities
60% of children attend secondary school in urban areas, but 36% in rural areas
The rise of the Islamic fundamentalist group Boko Haram has caused conflict and hindered economic development
Cultural context in Nigeria?
Social diversity has created a rich and varied artistic culture
It has thriving music, film and literary sectors
‘Nollywood’ is the second largest film industry in the world
The Nigerian football team has won the
African cup of Nations on three occasions, and several players belong to Premier Clubs in the UK
Environmental context in Nigeria?
Over 65% of Nigerians are farmers and Nigeria relies on agriculture and farming
South has better physical conditions such as higher rainfall and access to oil reserves in the Niger Delta
The north is semi-arid and suffers drought and desertification
Much of the natural vegetation has been replaced by agriculture, with cocoa and palm oil being grown in the south and peanuts in the south
The far north has semi-desert conditions, with nomadic grazing cattle
Recent deforestation has resulted in Nigeria losing 14% of its tropical rainforest between 2005-20
The Tsetse Fly, which is common in the warm and humid south, trasnmits a parasite that can be fatal to livestock- so cattle cannot be kept there
Aid in Nigeria?
- Despite economic growth, there is a development gap within Nigeria
- Poverty and infant mortality is high and life expectancy is low, especially in northeast Nigeria
- 4% of all African aid goes to Nigeria which is about US$5,000 million
- Aid comes from organisations such as the International Development Agency / World Bank (medicines), the EU, UINCEF, and individual countries including the USA, the UK and Germany
- Aid has benefited many people, particularly through community based projects supported by small charities and non-governmental organisations (NGOs)
- Corruption within the government and individuals has seen some aid money failing to get to the people who need it most
What are some examples of aid projects in Nigeria?
- The Aduwan Health Centre in Northern Nigeria, supported by ActionAid and the World Bank, which provides vaccinations and general healthcare, particularly for mothers and babies
- Anti-mosquito nets provided by the organisation ‘Nets for Life’
- Support for orphans and vulnerable children comes from Community Care in Nigeria, funded by USA AID
- World Bank funded loans to buisnesses to help diversify the economy away from being so dependent on oil so new buisnesses and industries are developed.
- Aid from the USA helps educate and protect people against AIDS/HIV
