Nigeria Case Study

Question 1

Advantages of shell oil?
(4)

Answer 1

Major contributors in taxes
Directly employed 65000 workers
Extra 250,000 jobs in related industries
91% of shell contracts now placed in Nigeria

Question 2

Disadvantages of shell in Nigeria(3)

Answer 2

*Oil spills have caused pollution and damaged other industries- agricultural and fishing
*Oil flares- pollution
*theft and sabotage- expensive for shell + gov

Question 3

3 examples of aid in Nigeria?

Answer 3

• $500 million loan from world bank to fund the d. Projects and provide loans to buisness
  *USA provided medical support- prevent spread of aids/HIV
  *“nets for life”-NGO education malaria stop

Question 4

Disadvantages of aid

Answer 4

Corruption–> aid not reaching destination
Used to influence country on decision–> something in return
Not tackling the root cause of under development leading to dependency

Question 5

Example of aid

Answer 5

Aduwan in kaduna state health center —> high case of HIV/AIDS did not have health center, Action Aid and World Bank funded them and local women now educated about immunisation of children and offers tests for HIV and other diseases

Question 6

Benefits of economic growth

Answer 6

Better jobs
Disposable income
Investment in Infrastructure
More reliable electricity
Investment in services
Reduced infant mortality
HDI increase

Question 7

Problems with economic growth in Nigeria

Answer 7

Industrial pollutants contaminate water and poisonous gasses –> respiratory issues
Traffic
Habitat destroyed for Industrial growth
Chemicals in farming polluting water and soil
Still d. Gap
2008 oil spills

Question 8

Nigeria basic facts

Answer 8

West Africa
Population 3× Uk
Economic growth due to oil reserves

Question 9

Nigerias global vs regional importance

Answer 9

Global-
12th largest oil producer

Regional-
One of Africa’s fastest growing economies
3rd largest manufacturing sector in Africa
Highest agricultural output in Africa

Question 10

Nigerias political,cultural context

Answer 10

Politic- former British colony until 1960, political instability, corruption, stable 1999, attracting invest from China and USA

Cultural context- centre of Africa’s music and film
Writers
Sporting success- football team has won ACON ×3

Question 11

Social and economic background

Answer 11

Social- multi ethnic/ faith- caused conflict e.g civil war from 1967 to 1970
Economic inequality between North (Islamic) and South (Christian) tension —> Boko Haram

Question 12

Environmental background

Answer 12

Tropical South
Savana North
Upland plateaux has cooler wetter conditions- farming

Question 13

Nigeria political change e.g what members are they of

Answer 13

Member of UN- significant peace keeping role
Member of OPEC- aims to stabilise price of oil and secure supply
African Union- responsible for economic planning and keeping the peace between Member states

Question 14

History of sectors

Answer 14

Traditionally economy was focused on agriculture, now oil which counts for 95% of export earnings
Nigeria offers cheap labour relaxed environmental laws
Number of TNCs looking to establish operations in the country

Question 15

Advantages of Shell

Answer 15

Employment and training
Invest in local area - e.g improving infrastructure
Modern tech
Local companies benefit from supplying
Export tax to gov

Question 16

Disadvantages of shell

Answer 16

TNCS exploit workers
High paid jobs not 4 locals
Most profit goes back to parent country
Environment