Case Study: Nigeria - Paper 2 Flashcards
Where is Nigeria located?
West Africa with an Atlantic coastline
What countries does Nigeria border?
Benin, Chad, Niger and Cameron
Why is Nigeria important?
Africa’s biggest economy-rapid economy growth
Huge military budget
Worlds highest GDP growth for 2010 to 2015
Largest population in Africa -in 2040 predicted fourth largest in the world world
Rich in oil - 75% of government money
Making increasing amount of money from manufacturing
Main trading partners - EU, USA, Brazil, India, China
Very attractive politically
Important member of the economic community of West Africa and the African union
Fifth largest contributed to the UN peacekeeping missions
How has Nigeria industrial structure changed
Traditionally, Nigeria’s main exports were agricultural like coca, timber, palm oil - today accounts for 98% of export earnings
From primary industries to secondary sector industries also growth in the service sector leads to a balanced economy
Since 1999 agricultural job had fallen due to increased use of farm machinery and better pay plus working condition in the manufacturing and service sector
Stable government and oil leads to industrialisation
More investment in manufacturing (products from raw materials)
Manufacturing council with 10% of their GDP
How has the multiplier affected Nigeria?
Regular paid work means more secure income more money to spend on manufactured products e.g. cars appliances so market for these grow
Industries grow increased demand more people employed money paid to the government and taxes increases
Industrial attract foreign investment stimulates further economic growth
Large TNCs in Nigeria
Shell. VW, netsle
Where are these headquarters for these TNCs found?
In HICs like the UK
What are the advantages of TNCs?
She provide employment in factories and development of new skills- 65,000 Nigerians work for Shell
She paid taxes to the government, which can be used for investment
TNC is often have charities to help people in the country
The shell foundation supports sustainability and bio diversity
Export revenues are earned
Investment by TNCs in local infrastructure and education
Large TNCs Use the services of local companies
Disadvantages of TNCs
TNC activities can pollute the environment
Shell had 7000 oil spills causing soil and water pollution
Reduces agricultural production and fishing yields
Frequent oil flares and toxic flames into the air
Local workers sometimes paid poorly- poor working conditions
Management jobs often go to foreign employees in HICS
A lot of profit goes to headquarters often abroad in HICs
Nigeria political and trading relationships
Independent from the UK in 1960-became a member of the British Commonwealth
Leading member of the African political and economic groups, e.g. African union and Ecowas
Globally, it contributes many tribes to the UN peacekeeping force
Became a major global trading nation
Exports: crude oil, natural gas, rubber and coca…
Imports : cars, telephones, rice, wheat
(telephones from China are the fastest growing imports)
Aid in Nigeria
35% of people live below the national poverty line
The poor have limited access to save water and sanitation and electricity
60% of those in poverty live in the north - 75% living in rural areas
Receives 4% of aid given to African countries -from the UK, USA
2014 World Bank approved 500 million on development projects and long-term loans to businesses
NGO provides education on malaria prevention distributes Auntie mosquito nets
Official delivered through the government was less successful because of corruption -diverted to other areas e.g. navy
Environmental impacts of economic development in Nigeria
Harmful pollutants go directly into open drains and water channels
Industrial chimneys emit poisonous gases
60 to 70% of Nigerians forest have been destroyed - Logging, agriculture, urban expansion and development
Squatter settlements like basic water and sanitation
Waste disposal and rubbish accumulates on wasteland and roadsides
Traffic congestion lead to high-level exhaust emission
Urban sprawl - grassland to concrete -biodiversity has therefore reduced
Oil spills (7000 from shell) impacted freshwater and marine ecosystems
Tin mining leads to soil erosion water supplies with polluted toxic chemicals
Positive Effects of economic development and quality of life in Nigeria
GDP is grown massively over the last 15 years
Class as an NEE and middle income country -world bank
More people have access to reliable water supplies and electricity
HDI indicators are improving : infant mortality rate decreased ( 211 per thousand in 1981 to 108 per thousand in 2015)
Life expectancy increased from 41 in 1981 to 52 in 2013
Adult literacy rate has increased from 55% in 9091 to 59% in 2015
HDI increasing since 2005- now at 0.5
Negative effect of economic development on quality of life in Nigeria
People still remain poor living in unhealthy living conditions
Oil has not been used effectively the rich and poor gap has become wider -corruption
60% of Nigerian population live in poverty
Need for stable government (inward investment)
Improve the pollution of the Nigeria Delta (many oil spills)
Prevent threats of desertification in the north
Religious conflict between Christians and Muslims
Recent kidnapping spread fear in the north by Boko Haram
