case study : nigeria - a newly emerging economy

Question 1

where is nigeria

Answer 1

Nigeria is a country in West Africa. It shares land borders with the Republic of Benin to the west, Chad and Cameroon to the east, and Niger to the north. Its coast lies on the Gulf of Guinea in the south and it borders Lake Chad to the northeast.

Question 2

why is Nigeria important? - global importance

Answer 2

in 2014 Nigeria become the world’s largest economy by 2050 should be top 20. Nigeria predicted to have the world’s highest average GDP growth for 2010-2015. 12th last producer = supplies 2.7% of the worlds oil. Country’s economic growth been based on oil revenues. Developed very diverse economy = finicial services, telecommunications and Media. 5th largest contributes to UN peacekeeping

Question 3

why is Nigeria important? - regional importance

Answer 3

2014 = highest GDP in the contient and the thrid largest manufacturing sector. Population = more than 182 million people low levels of productivty and are wide spread issues over land ownership has highest farm output. Has problems with poor roads and frequent power cuts. Has huge potential.

Question 4

Nigeria’s changing international relationships - UN

Answer 4

In 2003 Nigeria contributed the 5th largest number of troops to the UN peacekeeping force. In 2014-15 it was a temporary member of the UN security council.

Question 5

Nigeria’s Changing International Relationships - OPEC

Answer 5

Aims to satisfy the price of oil and to ensure a regular supply.

Question 6

Nigeria’s Changing International Relationships - African Union

Answer 6

Economic planning and peacekeeping group. Nigeria is an alliance with Niger,Chad and Benin and Cameron to provide troops.

Question 7

Exploring Nigeria - Political context
How did Nigeria’s independence from the UK in 1960 impact it’s development?

Answer 7

Its how it has a state government since before they struggle resulted in a sense of dictatorship and active war their between 1967 and 1970. The lack of political stability affected Nigeria’s development + Corruption.

Question 8

Exploring Nigeria - Political context
Which countries are investing in Nigeria due to its increased political stablity?

Answer 8

China,S. America,America

Question 9

Exploring Nigeria - Social context
a)Ethnic groups in Nigeria
b)Religions practiced in Nigeria
c)Conflict between regional and ethnic groups

Answer 9

a)Yoruba,Hausa,Fulani,Igbo
b)Christianity,Islam,traditional African religions.
c)Igbo-dominated S.E tried to separate from Nigeria to become Republic of Bafra.

Question 10

Exploring Nigeria - Regional Differences
What variations are there between rural and urban areas?

Answer 10

Urban areas = greater share of public services and facilities - 60% of children attend secondary school.
Rural = 36% go secondary

Question 11

Exploring Nigeria - Regional Differences
How does the GDP per person vary across the country?

Answer 11

GDP per person varies greatly across the country. It is highest in the south, US$ 8343 in the N.E but only US$ 292 in the South Eat.

Question 12

Exploring Nigeria - Cultural Context
a)Music
b)Cinema
c)Literature
d)Sport

Answer 12

a)nigeria music is enjoyed across the contienta; and beyond
b)known as “Nollywood” - 2nd largest film industry
c)well known,Nigerian writers include Wole Soyinka,Chinua Achebe, Chimamanda Ngozi Adehie.
d)Nigeria football team has own the cup 3 times. Many people in Premier League.

Question 13

Exploring Nigeria - Environmental Context
Northern Nigeria

Answer 13

Far north east - semi desert. Further south,tropical grassland dominates mainly used for grazing cattle.Crops such as cotton,millet and groundnuts growth.

Question 14

Exploring Nigeria - Environmental Context
Jos Plateau

Answer 14

The upland region centered on the city of Jos, its wetter and colder than surrounding savanna. Density populated farm land with some woodland

Question 15

Exploring Nigeria - Environmental Context
Southern Nigeria

Answer 15

High temperature and high annual rainfall most areas forest. Hard to keep cattle here. Lethal to livestock.

Question 16

Nigeria’s changing economy
How has Nigeria’s employment structure changed?

Answer 16

The discovery of oil in the Niger Delta in the 1950s led to a big change in Nigeria’s economy. Oil accounts for 14% of country’s GPD.

Question 17

How Nigeria’s economy has changed over time?
Traditionally Nigeria’s economy was focused on…

Answer 17

agriculture e.g cocoa and cotton.

Question 18

How Nigeria’s economy has changed over time?
There is still some of this today..

Answer 18

With Australia and Indonesia being notable customers for cotton.

Question 19

How Nigeria’s economy has changed over time?
However since the 1950s..

Answer 19

oil and gas become of increasing importance and today oil accounts for 98% of export earnings generating 14% of the countries GPD.

Question 20

How Nigeria’s economy has changed over time?
Nigeria’s oil is described..

Answer 20

as “sweet oil” which means it contains less than 42% of sulphur.

Question 21

How Nigeria’s economy has changed over time?
This makes it of a higher quality…

Answer 21

of that which can be imported from the Middle East making it ideal for refining into gasoline.

Question 22

How Nigeria’s economy has changed over time?
Traditionally,the greatest demand for Nigerian oil was from..

Answer 22

The Usa, but with the shift to American Shale oil, there has been a decline in demand and today India is their biggest customer.

Question 23

How Nigeria’s economy has changed over time?
Experts believe Nigeria has approx.

Answer 23

50 years of oil production left.

Question 24

How Nigeria’s economy has changed over time?
The depleting reverses coupled with..

Answer 24

increasing enviromental awarness means the govt is now trying to establish a more balanced economy with manufacturing being the fastest growing sector.

Question 25

What are Nigeria’s main imports and exports?
a)Main exports
b)Main imports

Answer 25

a)crude oil,gas,rubber,cocoa and cotton
b)refined petroleum, cars,telephones,rice and wheat

Question 26

What is a transnational corporation?

Answer 26

A transnational corporation (TNC) is a large company that operates in several countries. A TNC usually has its headquarters in one country with production plants in several others.

Question 27

transnational corporation - Advantages

Answer 27

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

Question 28

a transnational corporation - disadvantages

Answer 28

• 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
  Nigerian industry

Question 29

Shell Oil in the Niger Delta
Background Info

Answer 29

Shell – or Royal Dutch Shell – is one of the world’s
largest oil companies. It is an Anglo-Dutch
company with its headquarters in the Netherlands.
Since the discovery of oil in 1958, its operations in
the Niger Delta have been controversial.

Question 30

Shell Oil in the Niger Delta
Benefits

Answer 30

Shell has brought a number of benefits to Nigeria’s
economy by:
◆ 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 per cent of Shell contracts to
Nigerian companies
◆ supporting the growth of Nigeria’s energy sector.

Question 31

Shell Oil in the Niger Delta
tensions and environmental issues created

Answer 31

Despite the benefits, oil developments have caused
tensions and environmental problems.
◆ 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.

Question 32

Bodo oil spills (2008/09)
What were the impacts of the oil spill

Answer 32

In 2008 and 2009 two large oil spills devastated
the livelihoods of thousands of farmers and
fishermen living in the swamps around the town of
Bodo in the Niger Delta
Leaks in a major
pipeline caused 11 million gallons of crude oil to
spill over a 20 km2
area of creeks and swamps.

Question 33

Bodo oil spills (2008/09)
How much money did Shell pay in compensation and what was this used for?

Answer 33

In 2015 Shell agreed to pay £55 million
compensation to individuals and to the community
of Bodo. The money will be used to build health
clinics and improve schools. This is the largest
compensation paid by an oil company to a local
community affected by environmental damage.
Shell has also agreed to clean up the swamps and
fishing grounds.

Question 34

Where does Nigeria recieve aid from?

Answer 34

Most came from individual
countries such as the UK and the USA, and some from international
organisations like the World Bank . Charities and NGOs have also supported projects in Nigeria

Question 34

Why does Nigeria receive
international aid?

Answer 34

They have limited access to services such as safe water,sanitation and a reliable electricity supply.

Question 35

How does aid benefit Nigeria?

Answer 35

-Aid from the USA helps to
educate and protect people against
the spread of AIDS/HIV.
-In 2014 the World Bank approved a US$500 million
to fund development projects and provide long-term loans
to businesses. This helps reduce the over-dependence
on oil exports.
-The NGO Nets for Life
provides education on malaria
prevention and distributes
anti-mosquito nets to
many households.

Question 35

What prevents aid being used effectively?

Answer 35

◆ Corruption in the government, and by individuals, is a major factor in loss of aid.
◆ Donors may have political influence over what happens to aid.
◆ Money may be used to promote the commercial self-interest of the donor

Question 36

The Aduwan Health Centre

Answer 36

The community of Aduwan in Kaduna State, northern Nigeria did not have a
health centre. The few health 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.

Question 37

The Aduwan Health Centre
With support from ActionAid they received funds from the World Bank for a new
health clinic built in 2010. The new clinic:

Answer 37

◆ trains local women to educate mothers about the importance of immunising
their children against polio and other deadly diseases (photo C)
◆ tests for HIV and other infections
◆ immunises children against polio.

Question 38

How does economic growth affect the
environment?
Industrial growth

Answer 38

◆ Some industries dispose of chemical waste on nearby land,
threatening the groundwater quality.
◆ Industrial chimneys emit poisonous gases that can cause
respiratory and heart problems in humans (photo A).
◆ 70–80 per cent of Nigeria’s forests have been destroyed through
logging, agriculture, urban expansion, roads and industrial
development.

Question 39

How does economic growth affect the
environment?
Urban growth

Answer 39

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

Question 40

How does economic growth affect the
environment?
Mining and oil extraction

Answer 40

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. They cause acid
rain, which harms plants and aquatic ecosystems.
◆ Some economic developments in the Niger Delta
have caused violent conflicts with local people.

Question 41

Have all Nigerians benefited from economic development?

Answer 41

◆ In 2000, Nigeria was placed among the ‘least developed
nations’ in terms of wealth and education.
◆ In 2011, Nigeria had one of the highest average HDI
improvements in the world over the past decade.

Question 42

Has it all been good news?

Answer 42

n Nigeria are still poor. Limited access
to services such as safe water, sanitation and reliable electricity is still a problem.
Thirty years ago, Nigeria was at a similar stage of development to Malaysia
and Singapore. Since then, these two countries have moved far ahead of
Nigeria, despite Nigeria’s huge oil revenues. Its oil wealth has not been
used effectively, and the gap between rich and poor has become wider.

Question 43

Will people’s quality of life continue to improve?
◆ Political

Answer 43

the need for a continuing stable government to encourage
inward investment

Question 44

Will people’s quality of life continue to improve?
◆ Environmental

Answer 44

the pollution of the Niger Delta by oil spills has devastated
the lives of the local Ogeni people. Pests like the tsetse fly restrict commercial
livestock farming. Parts of the far north are under threat from desertification.

Question 45

Will people’s quality of life continue to improve?
◆ Social

Answer 45

– historical distrust remains between several tribal groups, like
the Yoruba and Igbo. There is also the religious divide between the
predominantly Christian south and the Muslim north. Recent
kidnappings by the militant group Boko Haram spread fear among
Nigerians and potential investors