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
How is Nigeria’s trading relationship with the rest of the world changing
Strong trading relationships with Africa and the world. Imports include:
* Refined petroleum from EU and USA
* Cars from Brazil
* Mobile phones, rice, wheat from China
Exports include:
* 50% to EU - crude oil, natural gas, rubber, cotton and cocoa
* Most of crude oil is exported to India, China, Japan and South Korea
* 30% of cotton to Australia 15% to Indonesia
Belongs to several trading groups for example:
* Economic Community of West Africa States (ECOWAS)
* Organisation of the Petroleum Exporting Countries (OPEC)
Types of international aid on Nigeria
Official development assistance (ODA) - aid given by governments paid by taxes. Includes:
* Multilateral aid given by international organisations e.g world bank
* Bilateral aid given directly by one country to another
Volutary aid is given by individuals or companies - distributed through charities, and non-government organisations (NGOs
* Short-term emergency relief is to help countires cope with natural distasters and wars
* Long-term development assistance helps people improve their lives through education, healthcare, or agricultural development
Aid to Nigeria
- Recieves aid from EU, UNICEF + countries like USA, UK and Germany
- In 2019, Nigeria recieved $3.4 billion of official development - $258 million from UK
- The Aduwan Health Centre in northenr Nigeria, supported by ActionAid and the World bank - provides vaccinations and general health care, especially mothers and babies
- Anit-mosquito nets are provided by the organisation ‘Nets for Life’
- Community Care in Nigeria, funded by USAAID, supports orphans and vulnerable children
- Aid from USA helps to education and protect people against AIDS/HIV
Environmental impacts: mining and oil extraction
- Has resulted in serious incidents of pollution - oil spills and fires in the Niger Delta
- Damage to aquatic ecosystems and toxic fumes being released into the atmosphere
- Tin mining has polluted local water supplies and resulted in soil erosion
- In 2009/09, two massive oil spills devastated 20 square km of natural swamps close to the town of Bodo in the Niger Delta - Shell agreed to pay £55 million to clean up the area
Environmental impacts: industrial developments
The speed of industrial growth means that many large-scale industrial developments are unregulated and lack planning consent:
* In Lagos and Kano, toxic chemicals are discharged into drains and open waters - damage to human health and ecosystems
* Chimneys - poisonous gas and global warming
* Deforestation - 80% of Nigeria’s forests have been destroyed - burning trees means more CO2, less CO2 absorbed and more soil erosion
* Waste disposal contaminating groundwater supplies
Environmental impacts: Urban growth
- Countryside lost to industrial developments or squatter settlements
- Lack of sanitation
- Waste disposal causes water pollution
- Fumes of traffic conjestion leads to global warming
- Reduced level of biodiversity
How development affects QoL: positive
- Life expectancy increased from 45.6 to 55 + IMR reduced
- Access to safe water increased from 46% to 78%
- Expected schooling years increased from 6.7 to 10
- Over 87% have mobile phones, 47% have internet access
- Better jobs - multiplier effect including healthcare and education
- Higher incomes - more recreational activities
- More infrastructure - schools, electricity, roads
How development affects QoL: negative
- The issue of government corruption
- Oil revenues neet to stimulate growth agross the economy and should be used to diversify Nigeria’s industry
- Environmental issues: soil erosion, desertification, malaria, oil spills
- Basic service provision need to be a priority (water, sanitation, electricity)
