Economic World - Nigeria Flashcards
1
Q
Where is Nigeria located?
A
Nigeria is located in West Africa, sharing a border with Benin, Chad, Niger and Cameroon. It is not, however a landlocked country and has the Atlantic Ocean to the North West, bordering it.
2
Q
How big is Nigeria, and what is its population?
A
It is 4 times bigger than the UK and has a population of 200,000,000 - three times that of the UK.
3
Q
Is Nigeria an NEE or LIC?
A
Nigeria is an NEE, it is the most populous and the most economically developed country in Africa. It’s recent growth in manufacturing has led to this transformation from an LIC to an NEE.
4
Q
What is the global importance of Nigeria?
A
- 31st largest GDP in 2018
- 21st largest economy
- 7th largest population
- 13th largest producer of oil
- Lagos, Nigeria’s largest city is a thriving global city with a strong financial and economic base.
- Nigeria has the second largest film industry in the world - Nollywood
- Plays an important role in world peace making affairs
5
Q
What is the regional importance of Nigeria?
A
- has the highest farm output in Africa
- Nigeria has the third largest manufacturing sector within Africa
- one of the fastest thriving economies and has the highest GNP on the continent.
- country generally seen as the indicator of the wellbeing of the continent.
6
Q
What is Nigeria’s political context?
A
- Nigeria achieved independence from the UK in 1960
- but then experienced political instability as different factions
fought to control, with a bitter civil war raging from 1967 to 1970 - the capital moved from Lagos to the newly built city of Abuja.
7
Q
What is Nigeria’s social context?
A
- multi-cultural, multi-faith society, with several tribes, including the Yoruba, Hausa and Fulani, represented
- land of over 500 languages and hundreds of ethnic groups.
- the fundamentalist group, Boko Haram has hindered economic development through conflict.
8
Q
What is the cultural context of Nigeria?
A
- has a rich and varied culture due to its social diversity
- has experienced success within Africa by winning the African Cup of Nations three times
- has the third-largest film industry in the world, Nollywood.
9
Q
What is the environmental context of Nigeria?
A
- To the south, high rainfall promotes tropical rainforest.
- Further north, grassland replaces trees and tropical rainforest.
- Further north, there is an upland plateau region which experiences cooler, and wetter conditions
- the far north has semi-desert conditions
10
Q
What is present between the wealth of people in Nigeria that is significant?
A
Despite the high GDP, Nigeria has a significant wealth inequality
More wealth typically found in the south, in and around Lagos, rather than towards the north, where the population is exceptionally poor.
Almost half of Nigeria’s population live on less than US$ 1 per day.
11
Q
How is Nigeria’s industrial structure changing?
A
It’s economic structure has morphed from being mainly based on agriculture to manufacturing and services - around 52% of Nigeria’s GDP comes from manufacturing and services.
12
Q
_________ and ________ ___ ___________ have led to a decline in the number of people employed in agriculture.
A
Mechanisation; rural-urban migration
13
Q
What has helped for manufacturing and service industries to grow in Nigeria?
A
- Nigeria’s increase political stability = because it has received more Foreign Direct Investment from countries like China, South Africa, and the USA.
14
Q
What has been a great discovery for Nigeria for more of its economic development?
A
- The discovery of oil which has lead to it being 91% of exports
- has led to 25% of people working in the oil industry
15
Q
What is one thing about Nigeria’s exports that limits its economic development?
A
- exports are mostly raw materials which have a lower value than manufactured products.
16
Q
What has lead for over 50% of Nigeria’s GDP to be generated from manufacturing and service industries?
A
Rapid industrialisation
17
Q
Give three points to show how Nigeria’s industrial structure has changed?
A
- employment in agriculture has fallen - mechanisation and rural-urban migration
- increased investment and political stability has given rise to more jobs in the manufacturing and service sector
- there has been a huge growth in the service sector - finance, communication and retail.
18
Q
When was oil discovered?
How did it help?
A
- 1950s and the oil and gas was extracted from the Niger Delta which fuelled Nigeria’s industrial revolution and attracted mass FDI.
19
Q
What was the problem with just relying on oil for Nigeria’s GDP?
A
- fluctuating prices, and social and environmental issues in the delta region have created economic turbulence.
- As a result oil and gas has only contributed to 9% of Nigeria’s GDP
- Also only 200 years of supply of oil left at today’s rate.
20
Q
How can manufacturing stimulate economic growth?
A
- they always encourage establishment and growth of linked industries - supplying raw materials to each other
- stimulates the growth of the service sector
- increased employment opportunities and higher wages
- increased employment = higher taxes, which the government can use to invest in social conditions
- a thriving manufacturing sector attracts foreign direct investment into the country.
- has led to the multiplier effect
21
Q
Agriculture has decreased from __% of the n.o of people employed to __%. Whereas industry and services increased from __% to __%
A
58; 22; 42; 77
22
Q
Service sector employs __% of workers and accounts for __% of country’s GDP.
A
50; 53
23
Q
Multiplier effect
A
An increase in one type of economic activity in a given city or region that prompts the increase in demand for goods and services, which triggers development of other types of economic development in the same region or city.
24
Q
What is a TNC?
A
Transnational corporation - a company that has operations (shops, research and so on) in more than one country
25
Why is Nigeria attractive to many TNCs?
- large market on offer
- low labour costs
26
What is Shell?
This is a massive TNC that operates in many countries around the world. It helps to extract oil from the Niger Delta.
27
How has Shell been operating on a primary, secondary and tertiary basis?
- primary - by extracting the oil, which is a raw material
- secondary - by refining the oil, which is manufacturing
- tertiary - by selling the finished products, which is a service sector
28
Why has Shell's work for Nigeria been useful for petroleum?
Shell's work in Nigeria produces more
than 21% of the country's total petroleum production from more than eighty
fields.
29
How has Shell helped Nigeria?
- employed 65 000 people
- and linked in with Nigerian industries
- brought in a lot of tax and export money - $1.4 billion/year
- oil refineries are supported by lots of local businesses which leads to the multiplier effect and the investment of more modern technology
- Shell has the Shell foundation to help sustainability and biodiversity and help local communities - it is a charity
30
General advantages of having TNCs in the country.
- Modern technology is introduced
- local companies may benefit by supplying TNCs.
- more taxes can be collected
- more employment with usually better wages
- companies invest in local area - like on roads and infrastructure
31
Negatives of Shell being in Nigeria?
- Oil operations are in a difficult area - there has been a long history of oil spills - contaminated natural environment and created difficult living conditions for Ogoni people. (7000 oil spills in the last 5 years) - caused farmland to be destroyed + water has been contaminated = fish dying.
- 4% of jobs go overseas to workers in the UK/USA = higher pay/shorter hours
32
__% of the workers are Nigerian. What does this mean?
96%
This means that a lot of the workers are from Nigeria and are getting income.
33
General disadvantages of TNCs?
- people from NEEs work for low pay/long hours
- environmental damage could be caused
- profits from
the production go straight to the headquarters in the HIC.
- TNCs can relocate somewhere cheaper which can lead to people losing their jobs without warning.
- poor working conditions
- raw materials are exported before being refined, which reduces profits in LICs and NEEs
34
How are Nigeria's political with the rest of the world changing?
- Nigeria was originally part of the British empire, so most political and trading links were with the UK and members of the Empire
- Since 1960, Nigeria has joined the Common Wealth, whilst also maintaining good links with UK but also other countries
- political leading role in Africa = in terms of economic planning through the African Union and peacekeeping as part of the United Nations
- Links with China are growing, as Nigeria benefits from increased investment, such as US$12 billion to construct a new 1400 km railway.
35
Trading relationships in Nigeria?
- Imports - refined petroleum products from the EU and USA, cars from Brazil, mobile phones from China, as well as staple food crops such as rice and wheat, Most imports come from China, USA, and the EU.
- Exports - almost 50% are to the EU, crude oil, natural gas, cocoa and rubber. Most of the crude oil is imported to India, China, Japan and South Korea.
30% of Nigeria's cotton to Australia
15% to Indonesia + cocoa is exported to Barbados for processing
36
How are Nigeria's trading relationships changing?
Despite still trading with the UK, Nigeria now conducts most of its trade with some of the world’s largest economies, including the EU, USA and India. Since becoming independent, oil has become Nigeria’s main natural commodity export. However, the country still imports manufactured goods such as chemicals and machinery.
37
What groups does Nigeria belong to?
- The Economic Community of West Africa States (ECOWAS)
- a trading alliance with its headquarters in Abuja
- the Organisation of Petroleum Exporting Countries (OPEC)
38
In ____, Nigeria had a _______ trade balance
2016, negative
39
What is aid?
The provision of support for people
40
What are the different forms of aid?
- emergency aid - e.g: food, water, shelter
- long term development aid - looking to improve people's quality of life - e.g: healthcare, schools, water supply
41
What are the two types of international aid?
- Voluntary aid - given by individuals or companies and distributed through charities and non-governmental organisations (NGOs) like OXFAM.
- Official Development Assistance - given by governments and paid for by taxes - becomes unpopular with taxpayers in those countries
42
What are the two types of ODA aid?
- Multilateral aid - given by countries through international organisations, like the World Bank or the International Monetary Fund.
Bilateral aid - given directly by one country to another. Sometimes with conditions attached
43
What are the two types of Voluntary aid?
- Short term emergency relief - to cope with immediate problems caused by disasters like earthquakes and wars
- Long term development assistance - helps people to improve their lives through education, health care or agricultural development
44
What is a main problem with Nigeria's economy?
Why is this the case?
Nigeria is Africa’s largest economy, but
it is not a rich or equal country. Oil
exports provided £30.9 billion of
government money in 2012, but per
person this brings in only £183 per year.
Nigeria is still heavily dependent on international aid.
45
__% of Nigerians live in poverty
60
46
What are some other issues present in Nigeria?
- a low life expectancy of 53.87 in 2017, according to the World Bank
- high birth rates at 5.5 children per woman
- the high infant mortality rate of 100 child deaths under 5 (per 1,000 live births)
- low literacy rates, with only 44% of children attending secondary school - 57% of girls attend primary school and out of that 1 in 4 move onto secondary school.
47
Why may aid not be exactly useful in Nigeria?
- Corruption in the government means that Aid is not given/ is lost
- Nigeria's government has become heavily reliant on foreign aid
- Aid donors may have political influence over who benefits and who does not. They may also use donations to promote themselves.
48
How does Nigeria benefit from aid?
- the Aduwan Health Centre in Nigeria, supported by ActionAid and the World Bank, provide vaccines and general healthcare
- anti mosquito nets are provided by the organisation 'Nets for Life'
- Aid from the USA helps to educate and protect people against AIDS/HIV
- Community care in Nigeria, funded by USAAID, supports orphans and vulnerable children.
49
Impacts of mining and oil extraction in Nigeria?
- oil spills and fires in the Niger Delta has lead to damage in aquatic ecosystems + toxic fumes being released into the atmosphere
- Tin mining has led to local pollution in water supplies and soil erosion
- Between 2008-2009 - two massive oil spills devastated 20 km squared of natural swamps.
50
How has industrial development led to environmental impacts?
- In major cities like Lagos and Kano, toxic chemicals are discharged, posing danger to human health and natural ecosystems
- chimneys emit poisonous gases that can affect people + contribute to global warming
- deforestation is a major issue- up to 80% of Nigeria's forests have been destroyed - burning has released CO2 a greenhouse gas
- waste disposal can contaminate rivers/land + ground water supplies
-
51
How has urban growth caused environmental impacts?
- large areas of countryside have been lost/swallowed up by industrial development/ squatter settlements
- lack of sanitation and inadequate waste disposal causes land and water pollution + fumes caused by traffic congestion contribute to climate change.
52
What are five ways that economic development has helped with people's quality of life?
- better paid jobs in manufacturing sector - more money to improve homes + access healthcare and education
- improved healthcare = less mortality + increases life expectancy
- improved living conditions = better performance at school and work
- people benefit from infrastructure and services like sanitation systems
- higher disposable income - more money for food and clothing + recreational activities
53
What are stats that prove Nigeria's development?
HDI increasing from 0.47 to 0.50
since 1980, life expectancy has increased from 45.6 to 52.5
access to safe water has increased from 46% to 64%
38% have internet access
70% have mobile phone subscriptions
54
What are certain challenges that need to be met?
- corrupt government
- environmental issues like desertification, soil erosion and so on
- basic service provision for everyone
- ethnic and religious conflicts e.g: Boko Haram, need to be addressed.
