Nigeria Flashcards
Location
- West Africa
- Bordered by Benin, Niger, Chad and Cameroon
- Off gulf of guinea
Nigeria importance: regionally
- One of Africas fastest growing economies - highest GDP on continent
- 3rd Largest manufacturing sector in Africa
- Highest population in Africa
- Highest farm output in Africa - highest number of cattle
- Largest oil producer in Africa
Nigeria importance: global
- 27th largest economy in the world
- 7th in the world by population
- 11th largest oil producer
- Lagos is a thriving world city
- Important peace keeping role
Political context
- A colony of UK until 1960
- Civil war between 1967-70
- From 1999, has become largely stable
- Investment from China, South Africa and America
Social context
- Multi-cultural, mutli-national society
- Many tribes and different faiths
- Has lead to regional conflicts - rise of Islamic fundamentalist group Boko Haram
Cultural context
- Rich varied artistic culture - thriving music film and literary sectors
- ‘Nollywood’ - one of the larges film industries in the world
- Football team have won AFCON as well as players in the Premier League
Environmental context
- In the south: tropical rainforest
- In the north: savana
- Far north: semi desert
Economic state of Nigeria
- One of the fastest growing economies in the world
- However, over 100 million people live on less than US$1 a day
How are Nigeria’s industrial structure and economy balance changing
- Economy used to be dominated by agriculture
- Now 50% of GDP comes from manufacturing and service sectors
- Employment in agriculture has fallen due to mechanisation + rural-urban migration
- Increased investment and political stability lead to a rapid rise in manufacturing sector - fastest growing sector
- Huge growth in service sector
- Oil and gas industry important to Nigeria’s economy
How manufacturing industry stimulates economic growth
MULTIPLIER EFFECT:
1. Investment from Transnational Companies e.g Shell - there are currently 40 in Nigeria - this increases infrastructure - more jobs
2. More employment leads to more taxes - employees and companies paying tax + higher wages leads to increased consumer demand, increasing the market, leading to further growth and investment
3. Increased tax leads to more government spending on health and education
4. Better education means people get more skilled higher paying jobs
5. Manufacturing industry sgimulages growth of service sector, encourages establishment and growth of linked industries, more foreign investment
How important are TNCs in Nigeria’s economic growth
- Invest hugme amounts of money and expertise - they benefit from tax incentives, cheap labour and large internal markets + they have good access to other African markets
- 40 TNCs operating in Nigeria
- Development of Nigeria’s oil industry (see next flashcard)
What is the role of TNCs in Nigeria’s oil and gas industry
- Examples: Shell, Chevron, Total
- Development of this industry relied on investment and expertise of TNCs
- In 1970s these TNCs invested in oil and gas exploration + construction of oil and gas platforms + laying of pipelines + construction of oil and gas terminals
- Has created job opportunities - 65,000 jobs which has raised incomes and contributed to economy (multiplier effect)
- Many Nigerian companies have benefitted by making contracts with the TNCs
Advantages of TNCs in Nigeria
- Provide employment and training of skills
- Modern technology introduced
- Companies invest in local areas improving services
- Local companies my benefit by supplying TNCs
- TNCs have international business links, helping industry thrive
- Government benefits from taxes from these companies - investment in health and education (multiplier effect)
Disadvantages of TNCs
- TNCs may exploit low-wage economy
- May avoid paying local taxes
- Working conditions may be poor - fewer regulations
- Environmental damage
- Higher paid management jobs are held by foreign nationals
- Most of the profit goes abroad rather than benefiting the host country
- Incentives used to attract TNCs could have been spent supporting Nigerian companies
How is Nigeria’s political relationship with the rest of the world changing
- After becoming independant in 1960, Nigeria has become part of the Commonwealth - maintained strong links with UK + other links (Africa, Asia and USA)
- Leading political role within Africa through African Union
- Peace keeping part of UN
- Links with China are growing - e.g investment lead to US$12 billion 1,400-kilometre railway