nigeria

where is nigeria?

- west africa
- borders 4 countries
- extends from gulf of guinea in the south to the sahel in the north

what is the global importance of nigeria?

- in 2014 it was 21st largest economy in world and its still growing
- supplies 2.7% of worlds oil
- much of countries growth has been based on oil revenues
- has developed a diverse economy including financial services, telecommunications and media
- 5th largest contributor to UN global peacekeeping missions

nigerias regional importance in africa

- has one of the fastest growing economies in africa
- in 2014 it had africas largest gdp and third largest manufacturing sector
- largest population of any african country
- has highest farm output in africa
- large proportion of people employed in agriculture; most are subsistence farmers
- has huge potential despite problems with internal corruption and lack of infrastructure

political context of nigeria

- was ruled by uk as a colony
- became independent in 1960
- political instability affected its development and led to widespread corruption
- since 1999 it has had a stable government
- several countries now starting to invest in nigeria eg china and usa

social context of nigeria

- multi ethnic multi faith country - this is a strength but also been source of conflict including civil war 1967-1970
- recently economic inequality between islamic north and christian south has created new religious and ethnic tensions
- this has created an unstable situation with a negative impact on the economy

cultural context of nigeria

- nigerian music eg fela kuti
- nigerian cinema - nollywood is second largest film industry in world
- well known nigerian writers eg wole soyinka
- nigerian football team won african cup of nations 3 times

environmental context of nigeria

- north is semi desert
- middle is tropical grassland used for grazing cattle, crops such as cotton grown
- jos plateau - upland region which is wetter and cooler than surrounding savanna, densley populated with farmland and some woodland
- south has high temps and high annual rainfall, mainly forest but also crops such as cocoa, hard to keep cattle because of tsetse fly

how have nigerias political links changed?

- until 1960 nigeria was part of british empire
- since independence nigeria become a member of british commonwealth
- also a leading member of african political and economic groups and international organisations

nigerias political links

- OPEC - aims to stabilise price of oil and ensure a regular supply
- CEN-SAD - trading group and develops sporting links
- african union - economic planning and peacekeeping group
- UN - significant role in peacekeeping
- ECOWAS - trading group

what are nigerias global trading relationships?

imports \= refined petroleum from eu and usa; cars from brazil and usa; telephones from china is a fast growing import
- exports \= crude and refined petroleum, natural gas, rubber, cocoa and cotton

2 nigerian exports

crude oil - greatest demand from usa, development of shale oil in usa means demand has fallen, india now nigerias biggest customer
agriculture - australia (30%) and indonesia (15%) are biggest customerss for nigerian cotton, only 2 other west african countries are significant trading partners - ghana and ivory coast

nigerias sources of income

- traditionally primary products such as cocoa and cotton were nigerias main source of income
- today oil accounts for 95% of nigerias export earnings

does nigeria have a balanced economy?

1999-2012
- growth of communications, retail and finance in the tertiary (service) sector
- employment in agriculture (primary sector) fallen due to increasing use of farm machinery and better pay and conditions elsewhere
- industrialisation and economic growth has increased employment in oil production, manufacturing and other industries (secondary sector)
- now has more balanced economy

nigerias growing manufacturing sector

- manufacturing involves making products from raw materials
- manufacturing growth has been hindered by dependence on export of raw materials
- today manufacturing accounts for 10% of nigerias gdp

how is manufacturing affecting economic development?

- regular paid work gives people more secure income - this means there is a large home market for products manufactured in nigeria eg cars
- manufacturing industries stimulate growth for other companies such as those supplying parts to make cars
- more people employed so revenue from taxes increases
- a thriving industrial sector attracts foreign investment
- oil processing led growth of chemical industries including soaps and plastics
- this growth is an example of the multiplier effect

what is a tnc?

a transnational corporation is a large company that operates in several countries
a tnc usually has its headquarters in one country with production plants in several others

advantages of tncs in nigeria

- companies provide employment and the development of new skills
- investment by companies in local infrastructure and education
- other local companies in local infrastructure and education
- other local companies benefit from increased orders
- valuable export revenues are earned

disadvantages of tncs in nigeria

- local workers sometimes poorly paid
- working conditions sometimes very poor
- management jobs often go to foreign employees
- much of the profit goes abroad

unilever in nigeria

- anglo dutch tnc
- manufactures items such as soaps foods and personal care items
- employs about 1500 people in nigeria
- it has promoted improvements in health care education and water supply

shell oil in the niger delta

- shell is one of worlds largest oil companies
- has extracted oil from niger delta since 1958 with some controversy

advantages of shell

- made major contributions in taxes
- provided direct employment for 65000 nigerian workers
- provided 250,000 jobs in related industries
- 91% of all shell contracts have been placed with nigerian companies

disadvantages of shell

- oil spills have caused water pollution and soil degradation, damaging agriculture and fishing industries
- frequent oil flares send toxic fumes into the air
- oil theft and sabotage cost tncs and the government billions of dollars every year

what is aid?

- can be provided by individuals, charities, ngos, governments and international organisations
- 2 main types of aid:
emergency aid - following a natural disaster or conflict
developmental aid - long term support aimed at improving quality of life

types of aid

bilateral - aid from one country to another
multilateral - richer governments give money to an international organisation
voluntary - money donated by the public and distributed by ngos such as oxfam
tied - aid may be given with certain conditions

what is the impact of aid in nigeria?

- many benefits
- in 2014 the world bank approved a US$500 million loan to fund development projects and provide loans to businesses
- the community care in nigeria project provides support for orphans
- nets for life (an ngo) provides education on malaria prevention and distributes anti mosquito nets
- aid from usa helps to protect people against the spread of aids/hiv

what prevents aid from being used effectively?

- corruption is a major factor in loss of aid
- donors may have political influence over what happens to aid
- by receiving aid a country may become more dependent

environmental impacts of economic development in nigeria - industrial growth

- in kano and lagos industrial pollutants go directly into water channels - they are harmful to people and ecosystems
- industry emits poisonous gases that can cause respiratory and heart problems
- 70-80% of nigerias forests have been destroyed through factors such as agriculture, urban expansion and industrial development

environmental impacts of economic development in nigeria - urban growth

- waste disposal is a major issue
- traffic congestion leads to high levels of exhaust emissions
- the development of abuja has resulted in areas of rich natural vegetation being replaced by concrete

environmental impacts of economic development in nigeria - commercial farming and deforestation

- there is water pollution due to chemicals, soil erosion and silting of river channels
- many species eg cheetahs and giraffes have disappeared because of deforestation

environmental impacts of economic development in nigeria - mining and oil extraction

- tin mining led to soil erosion
- local water supplies were polluted with toxic chemicals
- oil spills can cause fires, sending co2 and other harmful gases into the atmosphere creating acid rain

bodo oil spills (2008-09)

- in 2008 and 2009 11m gallons of crude oil spilt over a 20km2 area around bodo in the niger
delta
- this had disastrous impacts on the ecosystem and devastated the livelihoods of local farmers and fishermen
- in 2015 shell agreed to pay £55m compensation to individuals and the community

how has economic development affected quality of life for people in nigeria?

- higher disposable income to spend eg on schooling
- improvements to infrastructure eg roads
- better access to safe water and sanitation
- improved access to better diet means higher productivity
- better quality health care
- reliable electricity supplies
- reliable better paid jobs in manufacturing or services

have all nigerians benefited from economic development?

- nigerias hdi has been increasing steadily since 2005 and is expected to continue to rise
- most indicators suggest that economic development since 1990 has imrpoved the quality of peoples lives

has economic development in nigeria been good news for everyone?

- many people still poor
- the gap between rich and poor has become wider
- corruption has been major factor and the oil wealth was not used to diversify the economy
- nigerias over dependence on oil could become a problem in future

will peoples quality of life continue to improve in nigeria?

- 60% of nigerians live in poverty
- if their quality of life is to be improved the following challenges must be met
political - there is a need for a continuing stable government to encourage inward investment
environmental - there are threats of disease spread by the tsetse fly, desertification and pollution by oil spills
social - historical distrust remains between tribal groups, kidnapping by the militant group boko haram spread fear among nigerians and potential investors