changing economic world - nigeria Flashcards
what is nigeria’s importance within africa?
- africa’s largest economy with of $477bil
- ‘giant of africa’
- 3rd largest manufacturing sector
- largest agricultural output in africa employing ~35% of nigeria’s population
- largest population in africa with 206 million people
what is nigeria’s importance globally?
- major contributor to UN
- participated in 38 peace keeping missions since 1960
- projected to become top 15 economy by 2050, top 5 by 2075
- in 2020 nigeria was ranked 27th by gdp
what is nigeria’s importance within africa and globally (both)?
- oil production is 15th in the world
- provides 2.2% of oil globally
- makes up 5.5% of nigeria’s gdp
- nollywood is the 2nd largest film industry globally
who are nigera’s main political links? (6)
- african union
- united nations (UN)
- ecowas (economic community of west africa states)
- cen-sad (community of sahel-saharan states)
- world trade org
- opec (org of petroleum exporting countries)
what are nigeria’s main imports?
- telephones
- rice
- wheat
- petroleum (eu)
- cars (brazil and usa)
what are nigeria’s main exports?
- crude and refined pretroleum
- rubber
- cocoa
- cotton
- natural gas
- agriculture
what are TNCs?
a tnc (transnational corporation) is a large company that operates in several countries
why do TNCs locate in foreign countries? (4)
- tax incentives
- cheaper labour laws
- laxer environmental laws
- larger international market
what are the advantages of tnc investment in nigeria?
- employment opportunities
- tncs have to pay lots of tax which gov can use to develop nigeria
- workers have more training/learn new skills
- invest in facillities and infrastructure
- more availibilty of consumer goods in nigeria
- multiplier effect
what are the disadvantages of tnc investment in nigeria?
- exploit workers and pay lower wages than in hic
- much of profit goes abroad
- economic leakage (money made doesn’t always stay in nigeria)
- pollute and ruin the environment
- gov spends money attracting companies instead of improving life for locals
what are some economic advantages of shell in nigeria?
- provides direct employment for 2700 people and 9000 contractors of whom 97% are nigerian
-supports the growing manufacturing industry in the country
what are some social advantages of shell in nigeria?
- over 90% shell contracts awarded to nigerian companies
- around us$ 50,000/year spent on health care benefiting 250,000 people
- provide around 3000 scholarships to secondary school and unis in nigeria
what is a evironmental advantage of shell in nigeria?
shell not-for-profit enterprise ‘All On’ funds renewal energy projects eg solar power
what are some economic disadvantages of shell in nigeria?
- before, fishing and farming were main industries but due to oil spills it cannot take place there
- less workers due to wide spread health problems
- reduced tax paid in nigeria by regestering in other countries eg bermuda
- oil theft and sabotage costs billions $/ year and reduces production
- oil refined in usa/europe so most money doesn’t stay in nigeria
what are some environmental disadvantages of shell in nigeria?
- pollution from oil spills contaminates ground water supply
- kills aquatic wildlife/ ecosystem
- oil spills causes fires, sending CO2 into atmosphere which causes acid rain
- destruction of biodiversity
- long-term degradatio has widespread impact on both the natural habitat and those who rely on it
what are some social disadvantages of shell in nigeria?
- people in niger delta have no access to clean water
- benzene (carginogen) levels are 900x higher than safe levels
- has led to widespread disease and heath issues
- human rights abuses including murder of the ogon (niger delta) people
- emergence of armed groups and conflict
what is the economic impact of manufacturing in nigeria?
positive:
- industrial sector = 27% nigeria’s GDP
- fastest growing industrial sector in africa
- employs many nigerias (14% of population in 2020)
- regularly paid, formal work creates a more stable economy
- tax revenue from factories
- attracts foreign investmet
negative
- relatively low wages, exploit workers
what influence does china have in nigeria?
- 30% of chinese investment is in nigeria
- investement in construction, transport (improves trade)
- eg 2014, china railway construction corporation built a new 1400km railway along coast of nigeria
- exports phones - nigeria is ranked 7th for global no. of phones (improves communication)
what are the main sources of income in nigeria (and how have they changed)?
- traditionally, exporting primary goods (cocoa,timber,cotton)
- 1950s, oil discovered in niger delta
- oil now accounts for 90% of income, 9% of gdp
does nigeria have a balanced economy?
primary (agriculture)
- 1991, employed 60%, 2020 employed 36% (decreasing)
- contributes to 22% of gdp
secondary (manufacturing)
- 1991, employed 10%,2020 employed 30% (growing)
- contributes to 22% of gdp
tertiary (services)
- 1991, employed 30%, 2020 employed 53% (increasing)
- contributes to 50% of gdp overall quite balanced economy, however still heavily reliant on oil
why is nigeria’s economy developing?
- advancements in tech
- info tech is starting to drive economy
- huge and growing population (large workforce)
- investment in science and tech training
what are the environmental effects of industrial growth in nigeria?
- 96% of forests have been destroyed (due to farming, logging, urbanisation, roads and industrial development)
- pollutants from factories cause air and water pollution
- desertification (drying out of land) due to dams redirecting water
what are the effects of urban growth in nigeria?
- traffic congestion causes air pollution
- 40hectare olusossun ladfill in lagos is largest in africa, recives 100,000tonnes of rubbish/ day
- some green belts converted into building space
- squatter settlemennts with low QoL
what are the social effects of industrial growth in nigeria?
- chemical waste disposal can pollute groud water supplies, spread disease
- 94% of nigeria is exposed to air pollution levels exceeding WHO guidlines
