Geography- the changing economic world PART 3

Location of Nigeria

- It is in West Africa
- It is on the coast
- It borders Benin on the West, Niger on the North West, Chad of the North East and Cameroon on the South East
- The capital is Abuja
- The river Niger ends at the Gulf of Guinea

Nigeria's regional importance

2014- largest economy in Africa (and 21st in the world) which helps neighbouring countries like Chad as they can trade with Nigeria and obtain resources and develop

Nigeria's global importance

supplies 2.7% of the world's oil and is the 12th largest producer of it- all countries want oil for vehicles so Nigeria can trade on a global scale and earn money as oil is in demand everywhere

political context of Nigeria

-became independent from the UK in 1960 but only gained a stable government in 1999 after corruption issues and civil war which affected Nigeria's development
- is now a democracy

Social/cultural context of Nigeria

- Nollywood (Nigerian cinema) is the 2nd largest film industry in the world
- Nigeria has won AFCON 3 times
- multi ethnic and multi faith country- strength however has caused conflict

Environmental context of Nigeria

- semi-desert in the north however tropical grassland in the south
- high temp and annual rainfall in the south (lots is forest) but the Tsetse fly spreads a lethal parasite preventing farmers keeping livestock

How has the industrial structure of Nigeria changed

-1990s: heavily dependent on oil sector (made economy vulnerable to fluctuations in global oil prices)
-2000s: government implemented economic reforms which diversified economy and reduced dependence on oil, so non oil sector e.g. telecommunications grew rapidly
-2010: fastest growing economy in Africa however faced challenges like high inflation, lack of infrastructure and large budget deficit
-2020: COVID 19 caused a decline in oil prices and economic activity. faced same challenges as 2010 as well as high unemployment, so government implemented stimulus packages and measures to support small businesses.

balance between sectors of Nigerian economy (1999 and 2022)

1999: 70% agriculture, 9% industry, 21% services
2022: 23% agriculture, 31% industry, 44% services 3% quaternary

why has the industrial structure of Nigeria changed?

- stable government (companies feel confident investing)
- nollywood (3rd biggest film industry- lots of African actors will migrate
- mechanisation (less people working on farms, more better paid jobs )
- tech advances (more have phones and are therefore connected to the gloval economy)
- wealth increases have increased consumer spending (more factories are built, more taxes paid which gov can use)
- informal businesses now part of economy (more paying taxes)

how can manufacturing industry stimulate economic growth in nigeria

oil industry- 90% export revenue & 70% gov revenue- can be used to invest in other sectors causing positive multiplier effect on economic growth. also creates jobs
economy recorded positive growth of 1.87% in Q2 2021 driven by non-oil sector e.g farming- revenue from oil sector is being channelled into other sectors, having a positive impact on economic growth

What does TNC stand for?

Transnational Corporation

Where is the headquarters of a typical TNC located?

In a High-Income Country (HIC)

Where are the production plants of a typical TNC usually located?

In Low-Income Countries (LICs) or Newly Emerging Economies (NEEs)

What advantages do Shell bring to Nigeria?

- responsible for 30% of Nigeria's oil production- largest oil and gas producer, significant role in meeting energy demands
- invested $15 billion into Nigeria in the past decade- created jobs and business opps for the locals and helped develop infrastructure
- contributed to gov renvenue via taxes royalties and other fees
- working to improve energy efficiency and environmental impacs
- provides direct employment for 65000 people/Nigerian workers and 250,000 jobs in related industries
- 90% of employees are from Nigeria

Disadvantages shell brings to Nigeria

- causes water and soil pollution- 75% of rural areas have no access to clean water
- 9 million oil barrels split in the last 50 years
- not doing enough to help poverty- in the Niger Delta, where most oil is produced, communities are poor and underdeveloped
- incidents of corruption, mismanagement and lack of accountability which caused a large portion of the money not reaching the government or people

How have Nigeria's political links changed?

~ Member of British commonwealth from 1960
~ Leading member of African political and economic groups and international organisations
- In recent years, a shift in trade partnerships- decreases in trade w UK and USA but an increase w China
- China= main import partner for manufactured goods, China invest in Nigeria's infrastructure- e.g. building 1400km railway and investing $10billion into exploration and drilling new oilfield

How different political links can help Nigeria

1. African Union (peacekeeping group)- Nigeria has an alliance with Niger, Chad, Benin and Cameroon, reducing terrorism as terrorists can't hide in neighbouring countries

2. UN- could help eradicate diseases like Malaria

3. ECOWAS and CEN-SAD (trading groups) helping Nigeria freely trade with neighbours

4. OPEC- means Nigeria can artificially manipulate oil prices- powerful

Why does Nigeria need AID

60% is on less tha $1 a day
high IMR and death rate

Bilateral and long term aid that Nigeria receives

Uk international development department has funded a rural based HIV programme aimed at educating residents- improves Nigeria as they will spend less mony on HIV and AIDS so have more to spend on education and infrastrucure

multilateral aid nigeria receives

the NGO (non government organisation- a charity) 'Nets for Life' provides education on malaria prevention and distributes mosquito nets- so nigeria can spend less on treatment and more on education and infrastructure, and less sick means more can work

what prevents aid being used effectively in nigeria

corruption- instead of using it to help the country develop the government use it for their own personal benefits so is used for other things like the navy, and some donors just try to make themselves look good

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

- oil spills destroyed aquatic ecosystems
- burning gases caused air pollution, release of greenhouse gases and respiratory problems
- shell- 2 oil spills at Bodo
- 2008- Bodo-Bonny Trans Niger pipeline ruptured which destroyed 20sqm of creeks, and oil infiltrated farmland and water table

environmental of economic development in Nigeria- urban growth

- countryside lost to construction of squatter settlements and industry
- inadequate sanitation and increased domestic and industrial waste- water courses have become polluted
- increase in traffic, air pulltion and greenhouse gas emissions

environmental impact of economic growth in nigeria- industrial development

- toxic chemical discharge into drains and open sewers in Lagos- danger to public health and ecosystems
- emission of poisonous gases- affects health of locals, contributes to climate change
- deforestation of 80% of nigeria's forests- more soil erosion and climate change/greenhouse gases released into the environment

how does economic development affect peoples quality of life in Nigeria?

- decreasing uneployment rate- 22.1% in 2010 and 14% 2020
- increased investment in clean energy and pollution control tech- invested into renewable energy which could create 3.7 million jobs in 2025
- increased urbanisation and industrialisation- increased poluution from transportation and habitats destroyed
- increased access to education and healthcare
- worsened existing inequalities and led to displacement of communties- causes loss of cultural heritage and traditional livelihoods
poverty rate is highest in the world-80 million