Nigeria Case Study Flashcards
what is the importance of Nigeria?
1) It has the third largest film industry in the world- “Nollywood”
2) Population of 184 million is far larger than any other African country
3) Nigeria supplies 2.7% of the world’s oil
4) In 2014, it overtook South Africa as the largest economy in Africa
5) Apart from China, Nigeria has the fastest economic growth of all the BRIC nations
what is the population of Nigeria?
184 million
how much of the world’s oil is supplied by Nigeria?
2.7%
when did Nigeria overtake South Africa as the largest economy in Africa?
2014
describe Nigeria’s balance between different sectors of the economy
1) Money earned from Services 52%, Manufacturing 7%, Oil and gas 14%, Agriculture 22%, Other 5%
2) Nollywood – 3rd largest film industry in the world
3) Rapid increase in telecommunications and retail
4) Manufacturing increasing – processed food, leather, textiles, soap, detergents
what was Nigeria’s GDP in…
(a) 1999
(b) 2012
(a) $35bn
(b) $460bn
how much of Nigeria’s GDP comes from oil?
14%
describe how oil stimulated economic development in Nigeria
1) Oil (found in 1950s) accounts for 14% GDP, 95% export earnings
2) Produces 2.7% of world’s oil which is higher quality than oil from the Middle East
3) Oil processing led to chemical by products leading to growth in chemical industries such as soaps, detergents and plastics
describe Nigeria’s changing economic structure
1) In 1999, over two thirds of people were employed in agricultures, with less than 10% employed in industry.
2) By 2012, around a third of people were employed in industry and a third in agriculture.
3) This shift towards industry has coincided with Nigeria’s economic development.
4) In 1999, GDP was $35bn but by 2012 it had rapidly increased to $460bn
in 1999 what percentage of people were employed in industry?
Less than 10%
describe how Dangote cement has stimulated economic development
1) Producing manufactured goods in the country reduces the need to import goods and can be cheaper (used to import 60% of the cement used in Nigeria however now it is self-sufficient)
2) New industries create jobs and give people an income which contributes to the country’s wealth through taxes (3 giant cement plants in Nigeria)
3) Expansion of Nigerian companies into other countries increases Nigeria’s influence (Dangote Cement has expanded into 13 other countries)
4) Improves the standard of living by supplying products and promoting FDi, leading to the multiplier effect
when was oil found in Nigeria?
the 1950s
what percentage of export earnings does oil account for?
95%
how has Nigeria’s importation of cement changed?
used to import 60% of the cement used in Nigeria but now is self-sufficient
how many cement plants does Dangote cement have in Nigeria?
3
how many countries has Dangote cement expanded into?
13
what are the advantages of the TNC: Shell Oil in the Niger Delta?
1) Provides 65,000 jobs directly and a further 250,000 jobs in related industries
2) 90% of shell contracts to Nigerian companies
3) Contribute to economy in taxes and export revenue- paid over $30bn in taxes between 2006 and 2010
how many jobs does Shell provide directly in Nigeria?
65,000