Economic development in Nigeria

Nigeria’s social context

Nigeria gained independence from the UK in 1960. Nigeria has more than 500 ethnic groups, each with its own language. However three ethnic groups dominate- Igbo, Hausa and Yoruba. The south of the country is predominantly Christian whilst the North is Muslim.

Nigeria’s Environmental Context

Nigeria is located 5-12°N of the Equator in tropical Africa. Coastal regions consist of Mangroves and freshwater swamps. Tropical rainforest grows in the hot and humid south and savanna grassland grows in the hot dry climate further north. Much of the natural vegetation has been replaced by agriculture.

Nigeria’s political context

Nigeria saw three civil wars (1967-70). There’s now a stable democracy with regular elections. There’s still conflict, especially in the North. Boko Haram, an extremist group, wants to abolish democracy set up its own government under Sharia Law. At least 17,000 people have been killed since 2002 and half a million have left the area. In 2015, the world’s worst ever Ebola outbreak ( over 11,000 died), however only 8 people died in Nigeria due to great healthcare, planning and screening

Nigeria’s Relationships

Nigeria still trades with the UK but more of its trade is now with some of the largest economies in the world, including China, India, USA etc. With USA being Nigeria’s biggest exporter - 17% and China being Nigeria’s biggest importer - 19%. Oil is Nigeria’s main export with 95% of export earning coming from oil.

Nigeria’s Economy

Nigeria is now one of the fastest growing economies in the world, having the largest economy in Africa. By 2020 it was predicted to become of one of the world’s top twenty economies. One of the reasons for this is Nigeria’s youthful population - it has a high proportion go educated young people due to start working in the next twenty years. They will provide the country with skilled labour in manufacturing and services. Although the GDP has grown, 60% of people in Nigeria live on less Than US$ 1.25 a day.

Importance of Oil to Nigeria’s Economy

Makes up 14% of the GDP and 95% of all export earnings, it makes up 2.7% of worldwide production but it is better quality than that found in the Middle East. The oil industry has a revenue of US$ 340 billion, and 600 employees.

Importance of manufacturing to Nigeria’s Economy

Dangote Cement is one of Nigeria’s largest companies. The company has three large cement works , it has expanded into thirteen other African countries. New manufacturing industries like Dangote are increasing the pace of economic development - improving the standard of living by products of industries, e.g cement ; producing manufactured goods in the country to reduce the need to import goods and can be cheaper ; new industries create jobs, give people an income and contribute to the government wealth through taxes.

Role of TNCS in Nigeria

oil industry in Nigeria is located in the Niger Delta region, a vast area of wetlands on the delta of the Niger River. Companies erected drilling platforms on the oil and gas fields around the Niger Delta region, linked by pipelines to the coast where the crude oil is piped onto tankers for exportation to Europe and USA

Role of TNCS in Nigeria - Advantages

Brings new investments into a country’s economy. Provides jobs, often with higher wages. Brings expertise and new skills to the country. Have international links that benefit the country. They provide new technology to aid development.

Role of TNCS in Nigeria - Disadvantages

Takes profits out of the host country. Wage levels usually much lower in LICs and HICs. Can create significant environmental damage. Withdraw investments whenever they choose. Have political influence making them powerful.

Environmental impact of oil in Nigeria

Most people in Nigeria depend on the natural environment for their livelihood and the oil industry is damaging these areas. Oil spills are common occurrence in Nigeria. Gas flares are used to burn off gas from oil, the fumes affect people health and contribute to global warming. Oil heated by then becomes highly flammable and can burn out of control. Oil pollution in waterways kills fish and marine mammals.

International Aid

is help given by one country to another, in the form of money, food technology or advice. Usually, the aid comes from HICs.

Aid and Debt in Nigeria - International Aid

Nigeria has one of the highest death rates from Malaria. 207,000 people die every year. As a response, from 2009-2013, the World Bank, IMF and government of USA funded a project in Nigeria in which 60 million mosquito nets were distributed across the country. UK gives £300 million a year in aid to Nigeria.

Aid and Debt in Nigeria - Debt

During the 1980’s and 1990’s many African countries, including Nigeria, faced a debt crisis. They were unable to repay their debts without having to cut essential government spending on things such as education and healthcare. 2005, the leaders of the richest countries oof the world cancelled the debt of LICs and agreed to debt relief for 39 of the most highly indebted poor countries - Nigeria being one of them.

Development for all in Nigeria - HDI

Nigeria is ranked 152 out of 187 countries according to the Human Development Index. Nigerias is put in the low category of human development.

Development for all in Nigeria - Life Expectancy

Life expectancy has increased from 45.8, in 1980, to 52.4 in 2013. With a drop occurring in 1990, from 46.3 to 46.0

Development for all in Nigeria - GNI

An overall increase in GNI from 1980 to 2013, increasing from $4300 to $5400. With a decrease occurring in between 1980 to 1990, from $4300 to $2600.

Development for all in Nigeria - Literacy Rate

Literacy Rate has improved from 6.7 in 1980 to 9.0 in 2013. With a drop occurring in 1990, from 8.6 to 6.7 again - this is likely due to the debt crisis.

Development for all in Nigeria - Economic leading to social development.

Economic development leads to people being able to have better access to healthcare so life expectancy increases, therefore quality of life increases. Economic development would mean improved literacy rates as people would have access to better education. Along with this, economic development will lower birth rates as more women would be in workforce, focusing on their careers first.