Case study: Nigeria: A Newly - Emerging Economy Flashcards

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1
Q

describe the location of Nigeria

A

-located in West Africa
-over three times larger than the UK
-lies just north of the equator
-it’s south coast is on the Gulf of Guinea which is part of the Atlantic Ocean

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2
Q

what is the global importance of Nigeria?

A

-Nigeria is one of the worlds fastest growing economies
-experiencing a rapid period of economic development
-Nigeria supplies 2.7% of the worlds oil

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3
Q

why is Nigeria important in Africa?

A

-it’s population is much larger than any other African country
-Nigeria has graduated from being a LIC to a NEE
-it’s the largest economy in Africa
-has the highest farm output in Africa

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4
Q

describe the political context of Nigeria

A

-the country holds regular elections when people vote to choose their government
-Boko Haram (an extremist organisation) wants to abolish democracy and set up its own government under Islamic law, 17,000 people have been killed in the conflict
-in 2014 Boko Haram kidnapped 276 school girls as it opposes education, the rise of Boko Haram has been blamed on inequality
-there was an Ebola outbreak that was dealt with very effectively

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5
Q

describe the social context of Nigeria

A

-modern day Nigeria was formed in the twentieth century under British rule
-Nigeria gained independence from Britain in 1960
-rapid urbanisation in recent years led to a shift of population
-rural to urban migration has broken down some of the traditional boundaries

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6
Q

describe the regional variation of Nigeria

A

-cocoa and palm oil are grown in the south
-peanuts are grown in the north
-huge variations of wealth and development within Nigeria

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7
Q

describe the environmental context of Nigeria

A

-Nigeria is located 5-12°C of the equator in tropical Africa
-moving north from the equator, the climate becomes drier and this determines the type of vegetation in each area
-tropical rainforest grows in the hot, humid climate in the south of Nigeria
-savanna grassland is in the hot, dry climate further north

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8
Q

describe the cultural context of Nigeria

A

-the country was comprised of many smaller tribal kingdoms
-Nigeria has more than 500 different ethnic groups, each with its own language
-three ethnic groups dominate, Igbo, Yoruba and Hausa
-the south of Nigeria, where the Igbo and Yoruba live is predominantly Christian
-the north, where the Hausa live, is mainly Muslim

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9
Q

describe Nigeria’s political links

A

-ECOWAS
-CEN-SAD
-OPEC
-United Nations
-African Union

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10
Q

what is ECOWAS?

A

(Economic Community of West African States)- trading group made up of countries of West Africa with headquarters in Abuja

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11
Q

what is CEN-SAD?

A

(Community of Sahel Saharan States)- has similar aims to ECOWAS, and also seeks to develop sporting links

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12
Q

what is OPEC?

A

(Organisation of Petroleum Exporting Countries)- aims to stabilise the price of oil and ensure a regular supply

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13
Q

what is the United Nations?

A

in 2013 Nigeria contributed to the world’s 5th largest number of troops to the UN peacekeeping force

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14
Q

what is the African Union?

A

economic planning and peacekeeping group, Nigeria is in alliance with Niger, Chad Benin and Cameroon to provide troops

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15
Q

what are Nigeria’s main exports?

A
  1. crude
  2. petroleum
  3. natural gas
  4. rubber
  5. cocoa
  6. cotton
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16
Q

what are Nigeria’s main imports?

A
  1. petroleum
  2. cars
  3. telephones
  4. rice
  5. wheat
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17
Q

where does Nigeria import petroleum from?

A

EU and USA

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18
Q

where does Nigeria import cars from?

A

Brazil

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19
Q

where does Nigeria import telephones from?

A

USA

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20
Q

where does Nigeria import rice from?

A

USA

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21
Q

where does Nigeria import wheat from?

A

USA

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22
Q

what is one of the fastest growing imports for Nigeria?

A

telephones from China

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23
Q

what is the reason for telephones becoming one of the fastest growing imports in Nigeria?

A

these are in demand from Nigeria’s growing population and emerging middle class

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24
Q

describe the role of crude oil in Nigeria

A

-crude oil dominates Nigeria’s exports, until 2013 the USA was Nigeria’s biggest customer
-Nigeria’s oil is described as ‘sweet oil’–> oil with less than 42% sulfur
-it is higher quality than oil from the Middle East and suitable for refining into gasoline
-demand for Nigerian oil has fallen in recent years

25
Q

describe the role of agriculture in Nigeria

A

-reliance on crude oil petroleum has reduced the importance of agricultural products, although 40% of the population is employed in this sector
-Australis followed by Indonesia are the biggest customers for Nigerian cotton
-cocoa and rubber exports are low, with most exported to the West Indian island Barbados for processing

26
Q

what is the importance of oil in Nigeria’s economy?

A

oil accounts for about 14% of the country’s GDP and 98% of its export earnings

27
Q

why is Nigeria’s economy developing?

A
  1. rapid advances in technology
  2. greater concern for the environment
  3. many people speak English, giving potential for growth in telecommunications
  4. increased use of telecommunications, Nigeria is able to benefit from global finance and trade
  5. information technology is beginning t drive the economy rather than oil
  6. investment in science and technology training- Nigeria’s huge population is seen as a potential asset for the country
28
Q

describe Nigeria’s growing manufacturing sector

A

-manufacturing involves making products from raw materials
-in the past, growth in manufacturing was hindered by Nigeria’s dependence on the export of raw materials
-today, manufacturing accounts for 10% of Nigeria’s GDP, it is currently growing faster than the telecommunications, oil and gas or agricultural sectors
-goods that are produced are: processed foods, leather items, textiles and soaps and detergents

29
Q

how is manufacturing effecting economic development in Nigeria?

A

-regular paid work gives people a more secure income and provides an ever larger home market for purchasing products such as cars, clothes and electrical appliances
-manufacturing industries stimulate growth through close links with each other, for example companies supplying parts for making cars
-as industries grow, more people are employed, and revenue from taxes increases
- a thriving industrial sector attracts foreign investment which stimulates further economic growth

30
Q

what is a TNC?

A

a large company that operates in several countries

31
Q

what are the advantages of TNCs to Nigeria?

A

-companies provide employment 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

32
Q

what are the disadvantages of TNCs to Nigeria?

A

-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 the Nigerian industry

33
Q

describe Unilever’s operations

A

-it started in Nigeria in 1923 with the manufacture of soap
-the company has diversified to include the manufacture of foods, non-soap detergents and personal care items

34
Q

describe what Unilever has promoted

A

improvements in healthcare, education and water supply is part of its social responsibility programe

35
Q

describe Unilever’s products

A

-produces a range of foods, drinks and items for the home
-products are aimed at the growing Nigerian market and the development of brands to improve quality of life

36
Q

describe Unilever

A

an Anglo-Dutch TNC with joint headquarters in London and Rotterdam

37
Q

how has economic growth effected the environment in Nigeria?

A

-forests destroyed due to industrial growth
-water pollution due to farming
-soil erosion due to oil extraction
-traffic congestion due to urban growth

38
Q

describe the details about Shell Oil in Nigeria

A

-one of the worlds largest oil companies
-an Anglo-Dutch company with its headquarters in the Netherlands
-the swampy river delta is one of the most difficult places in the world to extract oil

39
Q

what are the advantages of Shell in Nigeria?

A

-making major contributions in taxes and export revenue
-providing direct employment for 65,000 Nigerian workers and a further 250,000 jobs in related industries
-giving 91% of Shell contracts to Nigerian companies
-supporting the growth of Nigeria’s energy sector

40
Q

what are the disadvantages of Shell in Nigeria?

A

-oil spills have caused water pollution and soil degradation, reducing agricultural production and fishing yields
-frequent oil flares send toxic fumes into the air
-militant groups disrupt oil supply in the delta
-oil theft and sabotage are big problems in the region, reducing production levels and costing TNCs and the government billions of dollars every year

41
Q

define the term aid

A

assisting people

42
Q

what are the two main types of aid?

A

-emergency aid
-development aid

43
Q

describe emergency aid

A

this usually follows a natural disaster or conflict- aid may take the form of food, water, medical supplies and shelter

44
Q

describe development aid

A

this is long term support given by charities and multilateral organisations- it aims to improve quality of life by providing safe water, education or improvements to infrastructure

45
Q

give three reasons why Nigeria receives international aid

A

-many people in Nigeria are poor, they have limited access to services such as safe water
- almost 100 million people live on less that $1 a day
-birth rates and infant mortality rates are high as well as life expectancy is low

46
Q

what aid does Nigeria receive?

A

-4% of aid given to African countries
-$5000 million
-aid comes from UK and USA and some from international organisations (World Bank)

47
Q

what is the impact of the aid given to Nigeria?

A

-the UK department of International Development has funded a health and HIV programme, providing health education in rural areas
-the NGO Nets for Life provides education on Malaria prevention and distributes anti mosquito nets to many households
-the USAID provides support packages for orphans and vulnerable children
-aid from the USA helps to educate and protect people against the spread of AIDS/HIV

48
Q

why might aid not be used effectively?

A

-corruption in the government and by individuals is a major factor in the loss of aid
-the government may divert money to be used for other purposes, for example there are claims that aid may have been used to build up Nigeria’s navy
-donors may have political influence over what happens to the aid
-money may be used to promote the commercial self interest of the donor

49
Q

describe the Aduwan health centre case study

A

-the community of Aduwan in Kaduna State, North Nigeria did not have a health centre
-the few workers in the area used the
community’s only shop as a clinic
-the area has a high incidence of HIV/AIDS and high infant mortality
-with support from Action Aid they received funds from the World Bank for a new health clinic built in 2012
-the new clinic: trains local women to educate mothers about the important of immunising their children against polio and other deadly diseases, tests for HIV and other infections, immunises children against polio

50
Q

what are some environmental challenges of rapid economic growth in Nigeria?

A

-air pollution
-rubbish dumped on the roadside
-oil pollution
-desertification

51
Q

how has industrial growth impacted the environment?

A

-harmful pollutants go directly into drains (damages ecosystems downstream)
-industries dispose chemical waste on nearby land (threatening ground water quality)
-industrial chimneys emit poisonous gas (causes respiratory issues)

52
Q

how has urban growth impacted the environment?

A

-squatter settlements are common in most cities
-services have failed to keep pace with the rate of economic growth
-waste disposal has become a major issue
-traffic congestion is a major problem

53
Q

how has commercial farming and deforestation impacted the environment?

A

-leads to land degradation
-water pollution due to chemicals, soil erosion and silting of river channels
-building of settlements has destroyed habitats and added CO2 emissions

54
Q

how has mining and oil extraction impacted the environment?

A

-tin mining led to soil erosion, local water supplies were also polluted with toxic chemicals
-many oil spills in the Niger Delta have had disastrous impacts on freshwater and marine ecosystems
-oil spills can cause fires, sending CO2 and other harmful gases into the atmosphere which causes acid rain

55
Q

how do peoples lives improve as the economy gets better?

A

-better access to safe water and sanitation
-improved access to a better diet means higher productivity at work and in school
-reliable electricity supplies providing lighting and heating, easier to go out at night and for children to do homework
-better quality health care, with more doctors and better equipped hospitals

56
Q

have all Nigerian’s benefited from economic development?

A

-Nigeria’s HDI has been increasing steadily since 2005
-in 2000, Nigeria was placed among the ‘least developed’ in terms of wealth and education
-in 2011, Nigeria had one of the highest average HDI improvements in the world over the past decade

57
Q

has economic development all been good news?

A

-despite the improvements, many people in Nigeria are still poor
-limited access to services such as safe water, sanitation and reliable electricity is still a problem
-it’s oil wealth has not been used effectively and the gap between rich and poor has become wider

58
Q

will people’s quality of life continue to improve?

A

-60% of Nigeria’s population live in poverty, improvement in their lives depends on the country coping with a number of challenges
-political, the need for continuing stable government to encourage stable investment
-environmental, the pollution of the Niger Delta by oil spills have devastated the lives of local Ogeni people
-social, historical distrust remains between several tribal groups, there’s also a religious divide between the Cristian south and Muslim north