Changing Economic World : Nigeria 2

Question 1

Nigeria as the head of Africa : Advantages over other African Nations

Answer 1

-Geographic Location
=> easy trade with Americas and Europe
-Oil
=> Valuable export for the Nigerian economy
-Large Manufacturing
=>Sells secondary products
-Stable government
=>Increases FDI & means money goes to infrastructure

Question 2

Nigeria as the head of Africa : Population

Answer 2

-200 million
-set to rise to 300 million by 2050

Question 3

Boko Haram : Aims, GN, and achievements

Answer 3

-impose Islamic law
-Operate in the north of the country
-2016 attack killed 1500

=> Barrier to development

Question 4

Changing Industrial Structure : 1) Balancing the Economy

Answer 4

-1999 Nigeria was 3/4 agriculture
-now 1/3 agriculture 1/3 service 1/3 industry
=> more stable economy less prone to collapse

Question 5

Changing Industrial Structure : 2) Economic Development causes

Answer 5

-Rapid advances in technology available
=> Mechanisation and transportation massively improves food production
-Rising population
=> large labour force
-Rising information technology and telecoms
=> English widely spoken (easy employment in telecom services)
=> Benefit from world finance and trade
=> More sustainable and less volatile than oil

Question 6

Changing Industrial Structure : 3) Changes in Manufacture

Answer 6

-Fastest growing sector in the economy
=> produces processed food, leather items, textiles and soaps
=> Cheap labour feeds the growth
-Manufacturing industries stimulate each other through close links
i.e. Bolt & Glass & Steel companies => supply car company

Question 7

Changing Industrial Structure : 4) The affect of improving employment

Answer 7

• Regular paid work (instead of farming)
  => secure income => Purchase of homes and luxury items (potentially by borrowing)

Question 8

The Roles Of TNCs In Nigeria : Reasons for movement to Nigeria

Answer 8

-Tax incentives
-Laxer environmental laws
-Cheaper labour
-Access to wider markets

Question 9

The Roles Of TNCs In Nigeria : TNC Advantages

Answer 9

-Bring skilled employees and train new workers
-More money spent in the economy => positive multiplier effect
-Healthcare improvements
-Infrastructure improvements
-Grows smaller national companies (that work with them)
-Export revenue (in tax) is earned

Question 10

The Roles Of TNCs In Nigeria : TNC Disadvantages

Answer 10

-Poor pay for local workers (and will fight to keep pay low)
-Poor working conditions (and will fight to keep so)
-Highest paying positions taken by foreign employees
-‘Economic leakage’ (most profits taken abroad)
-Government funding could go to local industry

Question 11

The Role of Shell in Nigeria : Advantages

Answer 11

-Major contributions in taxes and export revenue
-91% of contracts go to Nigerian companies
-Energy sector experience rapid growth
-Long term commitment to country and its people
-extensive social development programs in Niger delta
=> providing running water and electricity
-more than 3000 secondary and university scholarships each year

Question 12

The Role of Shell in Nigeria : Disadvantages

Answer 12

-Government & shell work together to silence discontent
-federal government is 60% share holder in shell activities in Niger Delta
-Oil spills cause soil degradation + water pollution
=> agriculture & fishing suffered
- Oil flares realise toxic fumes
-militant groups target oil supplies
-oil theft and sabotage are common
=> oil tapping equipment used on pipes

Question 13

Environmental Impacts of economic growth : Bodo Oil spills

Answer 13

-2008-9 two large oil spills
=> Massive damage to the famers and fishers of Bodo
-Shell paid £55 million in damages and economic development (largest oil compensation at the time)
-Also agreed to clean the spill

Shell chose to pay.What if they refused?

Question 14

Environmental Impacts of economic growth : Industrial Growth

Answer 14

-massive illegal small scale industry (10,000)
-70-80% of forests destroyed through logging
-Causing accelerated desertification

Question 15

Quality of life in Nigeria : Causes of Quality of life imbalance

Answer 15

-CORRUPTION
=> Money for public services diverted to individuals often to start private services
=> No punishments for corruption
=> Death threats are common for political enemies
=> Dangerous to run in regions due to threat of violence
-TNCs
=> Majority of profits go to small groups of higher ups
=> Majority of employees work on tiny wages
-Crime
=>$1 billion of oil money lost each month due to theft, tapping and smuggling
=> This oil not only stolen, is often sold with no taxes