Changing economic world- Nigeria Flashcards
Location of Nigeria
- West Africa
- South coast is on Gulf of Guinea
- Shares border with Niger, Chad, Cameroon and Benin
Regional importance of Nigeria
- Has the largest economy in West Africa
- By 2050, Nigeria’s economy projected to be top 20 in the world
- Has largest population in Africa (218 million in 2022)
Global importance of Nigeria
- 2.7% of world’s crude oil supplied by Nigeria
- By 2050, Nigeria’s economy projected to be top 20 in the world
predicted population of Nigeria by 2050
- 390 million ( roughly 170m increase)
named TNC in Nigeria
Shell
Positive social impacts of shell in Nigeria
- 6000 directly employed
- 20,000 indirectly employed
- shell development company- 3000 scholarships- secondary schools
negative social impacts of shell in Nigeria
- Oil spills (240,000 barrels yearly) destroy livelihoods, such as farmers
- Pipeline spill in Bodo, Ogoniland an example of above, however £55m given by shell to government to clean up was wasted due to corruptions
Positive economic impacts of Shell in Nigeria
- Shell has to pay billions in corporate tax annually (£20Bn in 2013)
Negative economic impacts of Shell in Nigeria
- Huge cost of cleaning up spills
- Loss of income for farmers if land destroyed/ruined in spills
Positive environmental impacts of Shell in Nigeria
- Shell invest huge amounts into renewable energy solutions
Negative environmental impacts of Shell in Nigeria
- Oil spills- kills wildlife such as fish
- takes 30 years for habitats to recreate themselves
proportion of Nigerians working in different sectors (2022)
- 22% agriculture (primary)
- 21% industry (secondary)
- 56% services (tertiary)
Fastest growing industries in Nigeria
- Telecommunications
- Retail and wholesale
- Film industry (Nollywood)
How much of Nigerian GDP is from Oil and Gas
- 14%
How much of total export earnings in Nigeria come from Oil
90%
Reasons for decrease in agricultural jobs
- Industrial development means more jobs available in factories, which earn more and are less dependant (on land, weather etc)
Reasons for increased investment in Nigeria
- Political stability since 2011- attracts foreign investors
- Lekki Free Trade zone- outside Lagos, attracts many Chinese companies as there is untaxed trade
Name of huge cement company in Nigeria
- Dangote Cement
How many jobs are supplied by oil and gas industry in south of Nigeria? (%)
10%
Area where Shell predominantly operates in Nigeria
- Niger Delta
How much of the total petroleum production is done by shell in Nigeria?
Over 21%
Examples of Chinese investment in Nigeria
- Invested $12Bn in a 1400km railway, making trade easier
- $10Bn into drilling new oil field
Nigeria main exports are to…
- USA (17%)
- India (11%)
Nigerian main imports are from…
- China (19%)
- USA (11%)
Nigerian main imports are (products)
- Refined petroleum products (although they have much crude oil, they do not have many refineries)
- Cars
- Mobile phones
Nigerian main exports are (products)
- Crude oil
- Gas
- Rubber
- Cotton
- Cocoa
Why does Nigeria need aid?
- Despite rapid development, many still poor
-60% of population live on less than 63p a day - Malaria
Why has aid failed in the past?
- Corrupt governments- money/resources lost or given to wrong people
- Aid money has been used to supply the navy
Examples of Top down aid in Nigeria
- World bank provided $560 million to build a large scale irrigation and drainage scheme in the Upper Benue river basin
Examples of Bottom up aid in Nigeria
- Christian aid
-given 15,000 insecticide treated mosquito nets to the community in Kaduna State (Northern Nigeria)
Examples of Short term/emergency aid in Nigeria
- UN World Food programme
-supplied food to 400,000 people in Nigeria who were unable to sow crops due to conflict
Examples of Long term/development aid in Nigeria
- Uk government in 2016
-provided £305 million of aid to help them reach its Millennium Development goals
Examples of some of Nigeria’s Millennium Development Goals
- Improve financial management and reduce corruption (political)
- Fight tropical diseases eg Malaria (social)
- Create jobs by providing Microfinance loans to people (economic)
- improve infrastructure by building more power stations (technological)
Examples of Bilateral/conditional aid in Nigeria
- China invested $4bn in oil and infrastructure development projects
-In return, Nigeria give Chinese oil firms contracts for oil exploration ini regions such as Niger Delta
Environmental impacts of Industrial growth
- Pollution of nearby land as toxic waste dumped or leaked
- Breathing/lung problems from huge numbers of fumes
Environmental impacts of Urban growth in Nigeria
- Waste disposal is a major issue as collection services cannot keep up with rate of Urban growth
- Traffic congestion creates high levels of pollution
- 70-80% of forests have been destroyed for logging, agriculture and urban development
Environmental impacts of mineral and oil extraction
- Oil spills damaged freshwater and marine ecosystems
- Oil spills can cause fires- CO2 released
positive effects of economic development on quality of life
- Nigeria’s HDI improved from 0.467 in 2015 to 0.535 in 2021
- life expectance rose from roughly 46 in 1982 to roughly 55 in 2022
negative effects of economic development on quality of life
- North of Nigeria significantly less developed
-some regions have limited access to safe water, sanitation and reliable electricity - almost 2/3 of the population live in poverty
