The Changing Economic World: Nigeria Case Study Flashcards
Where is Nigeria located?
- West Africa
- Borders Benin, Niger, Chad and Cameroon
- Its coast in the south lies on the Gulf of Guinea in the Atlantic Ocean
- Capital city: Abuja - located in central Nigeria
What is the global importance of Nigeria?
- In 2014 it became the world’s 21st largest economy
- 12th largest producer of oil
- Lagos is 4th most densely populated city in the world
- United Nations role, 5th largest contributor to peacekeeping
- NEE
How important is Nigeria to Africa?
- Has the highest GDP and farm output in Africa
- Could lead Africa to development as it’s a UN contributor and has a high employment rate
- NEE
Describe the POLITICAL contact of Nigeria within a world context
- Became independent from UK in 1960
- Political instability affected Nigeria’s development and led to corruption
- Has had a stable government since 1999
- Several countries are starting to invest (inc. China, America)
Describe the SOCIAL contact of Nigeria within a world context
- Multi-ethnic, multi-faith country, this is a strength but has causes civil war previously
- Ethnic groups: Yoruba (21%), Hausa (29%), Fulani (29%), Igbo (18%)
•Economic inequality between the north and south has led to tensions
which have a negative impact on the economy
Describe the ENVIRONMENTAL contact of Nigeria within a world context
•Decreasing rainfall towards the north in West Africa
SOUTH:
•high temperatures and high annual rainfall
- Mostly covered by forests
- The Tsetse fly spread a lethal parasite that prevents farmers keeping livestock
Describe the CULTURAL contact of Nigeria within a world context
- Nigerian music is enjoyed across the continent
- Nollywood is the second largest film industry in the world
- Nigerian football team won the African Cup of Nations 3 times
Describe the changing industrial structure within Nigeria
•Employment in agriculture decreasing–increasing use of farm
machinery, better pay and conditions in other sectors
- Increased employment in oil production and manufacturing industries
- Growth of communications, retail and finance in service sector
Explain how manufacturing can stimulate economic growth within Nigeria
- 10% of Nigeria’s GDP is from manufacturing
- Regular paid work gives people a more secure income, so people will spend more (multiplier effect)
- Manufacturing industries stimulate growth for other companies
- Attracts foreign investment
- Oil processing has led to growth in chemical industries
What is at Transnational Corporation?
A company that has operations in more than one country. Many TNCs are large and have well-known brands.
What are the ADVANTAGES of TNCs?
- Companies provide employment and develop new skills
- Investment by companies helps infrastructure and education
- Valuable export revenues are earned
What are the DISADVANTAGES of TNCs?
- Local workers are sometimes poorly paid
- Working conditions are sometimes poor
- High paid jobs often go to foreign employees
- Much of the profits go abroad
Explain the ADVANTAGES of TNCs in Nigeria, using the case study Shell in the Niger Delta
- Major contributor to taxes
- Provided direct employment for 65,000 Nigerian workers
- Provided 250,000 job indirectly
- 91% of all contacts are with Nigerian companies
Explain the DISADVANTAGES of TNCs in Nigeria, using the case study Shell in the Niger Delta
- Oil spills have caused water pollution and soil degradation which effects farming
- Frequent oil flares send toxic gases into the air
- Oil theft costs TNCs and the government billions of dollars per year
How have Nigeria’s exports changed over time?
- Until 2013, USA was Nigeria’s biggest customer for crude oil
- Due to recent development of shale oil in the USA, demand for Nigerian oil has fallen
- India is now Nigeria’s biggest customer for crude oil
- Between 2013-14, exports of crude oil to India, China, Japan and South Korea increased by 40%
