Nigeria Case Study

Question 1

Nigeria’s Current Economy

Answer 1

78% Crude Petroleum
9% Petroleum Gas
7% Refined Petroleum

Question 2

What is happening to Nigeria’s economy

Answer 2

1991: large primary sector, 25% secondary
2019 : 50 % primar, small secondary and larger tertiary.
Higher incomes -> people buy more -> nee more tertiary in retail eg. shopkeepers
Nigeria’s government doesn’t take much taxes.
Corruption - money stolen by politicians.

Question 3

How could manufacturing in Nigeria help to develop

Answer 3

Kia and VW invested because lower labour costs
increasing income of people means more people can afford
people have very few appliances becasue companies think they can’t afford.
Higher income allows them to spend on appliances.
Higher incomes means more people set up companies in Nigeria.
MULTIPLIER EFFECT
30% corporate taxN

Question 4

Nigeria’s Oil

Answer 4

Oil discovered in Nigeria in mid 1950s
35 billion barrel of oil reserves found beneath niger delta.
gas reserves of 100 trillion cubic feet
Oil spills - two oil spills in 2008
natural gas flares
7000 oil spills already.

Question 5

positives and negatives of
Transnational Corporations in Nigeria

Answer 5

Positives:
Provide jobs in factories
Have charities to help the people
Improved infrastructure
$12 billion spent
$20 billion taxes in 2013

Negatives:
Polluting environment
Oil spills
Human rights abuse
work 12+ hours in poor conditions
Child labour
decrease the amount of tax they are paying.

Question 6

Nigeria ECOWAS

Answer 6

Nigeria is part of a trading group called (Economic communities of West African States) ECOWAS

Question 7

Trade in Nigeria

Answer 7

Exports - 72.4% Crude Petroleum, 14.8% Petroleum Gas, 1.8% Refined Petroleum.
15.5% of exports to India and 15.5% to USA and 10.3% to Spain.

Imports - 11.1% Refined Petroleum, 4.52% Passenger and Cargo Ships, 4.12% Wheat
31.1% from China, 7.37% from Netherlands, 6.5% from USA.

Question 8

Chinese aid in Nigeria

Answer 8

Building railway from lagos to calabar
deepest port in africa - biggest ships most goods. Free trade zone - no tax. 17000 jobs
more imports for nigeria and exports for china
$16 billion in nigerias oil
chinese influence - forced to buy chinese products.

Question 9

What will impact nigerias export incomes

Answer 9

• demand for oil
• switching to sustainable energy
• international agreements + pressures
• non-renewables

Question 10

Effects of economic development in Nigeria - income inequality

Answer 10

• corruption
• taxes spent on machinery not on the people
• government is oil rich - no interest in improving other industries.

Question 11

Effects of economic development in Nigeria - Impacts on people

Answer 11

Squatter settlements are more common in towns, very densely populated with poor services
traffic congestion is more of a problem in Nigerian cities such as lagos.
Economic development in niger delta has cause conflict with locals.

Question 12

Effects of economic development in Nigeria - impact on water

Answer 12

Many harmful pollutants go directly into open drains and water channels.
some industries dispose chemical waste polluting ground water
Oil spills in Niger delta have had disastrous impacts on freshwater and marine ecosystems

Question 13

Effects of economic development in Nigeria - Impacts on soil and vegetation

Answer 13

96% of Nigeria’s forests have been destroyed through logging, agriculture, urban expansion, roads and industrial development.
desertification is a major problem in Nigeria, made worse by large scale dams and irrigation scheme
oil spills cause acid rain which pollutes plants.
tin mining leads to soil erosion