Nigeria Flashcards
How much of the worlds oil do Nigeria supply?
2.2%
What film industry is Nigeria home to?
Nollywood (2nd Largest Worldwide)
When were Nigeria colonised and by who?
1884 - British targeted them with military due to rich resources
Why is Nigeria important?
ECOWAS - Economic Community of West African States
OPEC - organisation of petroleum exporting countries - limit oil supply to keep prices high
What are 3 different ethnic groups within Nigeria?
Yoruba, Igbo, Hausa and Fulani
What is happening to industry?
Primary sector has reduced and the others are becoming more balanced
What are 3 benefits of manufacturing?
As industry grows more become employed and revenue from taxes increase
Reduces need to import
Thriving industrial sector = attracts foreign investment
Oil processing = chemical industry grows
Expansion of Nigerian companies into other countries
Improves standard of living = jobs + products
Workers gain a secure income
What is the multiplier effect of industrial development and investment in Nigeria?
TNCs attracted by cheap labour workforce and poor enviro laws
Factory workers earn more + spend disposable income in local economy
Local services (eg banks and hairdressers) grow and tertiary sector increases
Gov receives more tax income from companies and middle class
Gov invests wealth in infrastructure to attract more investment
What is a TNC?
A large company working across two or more countries
Where do Shell operate in Nigeria?
In southern Nigeria by the Niger Delta
What percentage of Shells operations are gas?
70%
How much of Nigeria’s income is generated from oil revenue?
75% 🌊
How much employment does Shell directly generate?
2700
How much have Shell contributed to LICs through taxes?
$12 billion
What is shells micro finance scheme (to help support smaller businesses) called?
LIVE WIRE
How much do Shell spend yearly on healthcare?
$50,000 per year which benefits 250,000 people
How have Shell helped improve infrastructure?
Built 20 health care centres
In 2019 spent $40 million on social investment (eg, provide 3000 secondary school scholarship)
How has access to clean water improved?
From 46% -64%
How has HDI improved!
0.47 in 2005
0.50 today
What is a disadvantage of Shell relating to profits?
Profits leave the country and return to the host country
One year Shell made $20.1 billion profit and Nigeria only received 1 billion
TNCs take advantage of weak regulations and can pollute the environment? True of False
And how many oil spills have their been since 2011
True
Shell has released toxic flames and gas flaring has also been a problem = air pollution
There have been 1010 oil spills since 2011 leaking over 17.5 million litre
What percentage of Nigeria’s forest were deforested?
Due to urban sprawl 80% of the countryside has been lost through slash and burn - these areas are now home to squatter settlements with poor sanitation, waste disposal and traffic
What can TNCs do?
Leave quickly- only stay whilst it’s profitable
What do criminal gangs do?
Tap into pipeline and steal oil - which can lead to violence and environmental pollution
What type of trade is most common.?
Containerisation- trade via container ships
40ft container = £1800
What are the 3 positives of trade in Nigeria?
Export goods to earn an income
Oversea markets help grow businesses
Import raw materials to manufacture
Food and resources security
Improve diplomatic links = investment
What are 3 negatives of trade in Nigeria?
Export raw materials cheaply = exploitation
Tariffs and taxes on exports to the EU
Import of expensive good = trade deficit
Trade in arms can lead to conflict
Fluctuation in prices
What do Nigeria export?
Oil - 75% of all income
Scrap vessels
Cocoa beans
What do Nigeria import?
TVs and other electronics like fridges and cars
How much do Nigeria export ?
$42 billion
How much do Nigeria import?
$52.4 billion
What is Nigeria’s trade deficit?
$10.4 BILLION
Who do Nigeria trade with ?
India, china, Spain,Malaysia, USA, Netherlands
Why is OPEC necessary?
Critical to achieve oil market stability
How many direct jobs do Shell create in the Niger delta
65,000
What percentage of Shells contracts are given to Nigerian companies?
90%
How many oil related jobs has Shell created in Nigeria ?
250,000
What’s the name of aid in Nigeria ?
Nets for Life - help prevent malaria by providing 62 million nets in Nigeria - 2 nets per household
