Nigeria: case study

Location

Located in West Africa

Population

Nigeria has a population of around 219 million making it the most populous country in Africa

Status

Nigeria is a Newly Emerging Economy (NEE)

Regional Importance

Largest African economy

Global Importance

Nigeria is the 12th largest oil producer and supplies 2.7% of the world’s oil

Social Context

multi-ethnic and multi-faith society, with over 250 ethnic groups and 500 languages

Urbanisation

Over 50% of Nigeria’s population lives in urban areas

Cultural Importance

Nollywood is the second largest film industry in the world

EconomicStructure(Past)

Historically dominated by primary sector such as farming and oil

Economic Structure(Present)

Growing manufacturing

Manufacturing Benefits

Manufacturing creates a multiplier effect increasing jobs and tax revenue

Multiplier Effect manufacturing

More manufacturing → more jobs → more spending → more tax → more services → more investment → more growth

Shell(TNC)

Shell is a major transnational corporation working in Nigeria’s oil industry

TNCAdvantages

Creates thousands of jobs

TNCDisadvantages

Causes oil spills

PoliticalLinks

Nigeria is a member of the UN

RelationshipwithChina

China invests heavily in Nigerian infrastructure including railways and oil

RelationshipwithUK

UK invests in Nigerian education

Aid

Nigeria receives over $2 billion a year in aid due to poverty and lack of services

AidBenefits

Improves health

AidProblems

Corruption

Environmental:OilSpills

Oil spills contaminate water and soil in the Niger Delta harming fishing and farming

Environmental:GasFlaring

Gas flaring releases toxic fumes damaging health and contributing to climate change

Environmental:Urbanisation

Rapid growth in cities like Lagos causes air pollution

Environmental:Industry

Factories release toxic chemicals into rivers and air

SocialImpacts

Improved healthcare

EconomicImpacts

Growing middle class

Quality of Life(Improved)

Life expectancy and literacy are rising with better access to services

QualityofLife(Challenges)

Rural areas face poverty

LagosPopulation

The city has a population of around 21 million

LagosGrowth

Lagos grows by around 600

LagosHousing

Over 60% of Lagos residents live in informal settlements or slums

OilExportPercentage

Oil accounts for 90% of Nigeria’s export earnings

GDPGrowth

Nigeria’s GDP increased from $90 billion in 2000 to over $500 billion today

HDI

Nigeria’s HDI is 0.532 ranking around 163 globally

LiteracyRate

The literacy rate is around 62%

LifeExpectancy

Life expectancy is around 55 years

InfantMortalityRate

Infant mortality has fallen to around 60 deaths per 1

ElectricityAccess

Around 60% of Nigerians have access to electricity

ShellJobs

The oil industry supports 65

OilSpillStatistics

Over 2

GasFlaringAmount

Billions of cubic metres of gas are flared annually

PovertyNorth

Over 70% of northern Nigerians live in poverty

PovertySouth

Poverty in the south is around 20–30%

InternalMigration

Thousands migrate from rural areas to Lagos each year for jobs and services

Remittances

Nigerians abroad send billions of dollars in remittances each year

Environment Diversity

Nigeria contains rainforests