Economic Development In Nigeria Flashcards
Where is Nigeria?
Nigeria is an NEE located in West Africa
Where is Nigeria?
Nigeria is an NEE located in West Africa
Why is Nigeria important nationally?
-it has the highest GDP for Africa and is one of the fastest growing economies there
Why is Nigeria globally important?
-it supplies 2.7% of the world’s oil
What is the cultural context of Nigeria?
-Nigeria is socially diverse, with many ethnic groups and religions. This is because Nigeria had many tribes in the past, as well as being ruled by Britain during the British Empire.
-Nigeria actually has the second largest film industry in the world (Nollywood)
What is the social context of Nigeria?
-there are diverse religious beliefs
-there is also an extremist terrorist group named Boko Harmam who’s goal is to establish Nigeria as an Islamic state and had been responsible for numerous attacks and kidnappings
What is the political context of Nigeria?
-Gained independence from the UK in 1960
-it has a democracy
- Many companies such as shell now investing in Nigeria
What is the environmental context of Nigeria?
-Northern Nigeria is semi-desert
-Southern Nigeria: high temperatures and high rainfall
What does Nigeria Export?
Crude oil, natural gas, rubber, cocoa and cotton
What are Nigeria’s main imports?
Cars, refined petroleum, rice, wheat and telephones (due to its rising wealth)
How has Nigeria’s industry changes and why?
- There has been a decrease in agriculture due to increase in machinery
-There has been an increase in industry due to industrialisation
-Increase in services due to growth of communications and retail
What is a TNC?
-A transnational corporation
-this is a company that operates in more than one country
-usually they’re headquarters are based in HICs and factories in LICs
Why do TNCs choose to locate their factories in LICs?
- Access to cheaper labour (lower minimum wage and people work for hours at a time)
• Access to new markets (to sell their product)
• Less environmental laws to adhere to meaning they won’t have to pay fines
What are the adavantages of a TNC on its host country?
• Creates more jobs
• TNCs often invest in infrastructure of the country
• Can reduce poverty
What are the disadvantages of a TNC on its host country?
• Poor working conditions for workers
• Low pay
• Profits drains from the area
• The financial incentives offered to attract TNCs can often be better spent investing in healthcare etc.
What is an example of a TNC that invests in Nigeria?
Shell
What are the advantages of shell on Nigeria?
-shell had invested 20billion dollars in corporation tax on Nigeria in 2013 which could utilise to further develop the country e.g. on education so people can apply for higher skilled jobs and earn more which the gov can earn tax on
-directly employs 65,000 people
What are the disadvantages of shell on Nigeria?
shell extracted 30billion dollars worth of lil from the Ogoni people:
-this could cause oil spills which would kill off ecosystems impacting fish industries
-oil flares give off harmful fumes into the air
What are the 2 different types of aid?
1)Emergency aid
2) Development aid
What is emergency aid?
-Aid that is given directly after a natural disaster e.g. an earthquake.
-This may take the form of water, food, medical supplies
What is development aid?
Aid that happens over a longer term. It may be provided by governments or charities and may include providing education or access to safe water wells in order to improve quality of life
Why is Nigeria in need of aid?
-It has large amounts of people living in poverty (60+% of the population live on less than US$1 per day.
-Infant mortality rate is high and life expectancy is low.
What aid does Nigeria receive?
UK and USA World Bank funded businesses and started ups Charity work in communities
What impact has aid had on Nigeria?
-World Bank donations helped start up new businesses which reduced over reliance on oil industry and creates more jobs
-Education projects from the USA aim to educate population about HIV/AIDS
prevention
-“Nets for Life’ provide mosquito nets to households
