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 Much of the natural vegetation has been replaced by agriculture.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.