Nigeria - Case Study

Location of Nigeria

West Africa

NEE

Regional importance of Nigeria

-one of the fastest growing economies in Africa

-Africa's highest GDP

-Africa's highest farm output and number of cattle

-largest population of any African country

Global importance of Nigeria

-27th largest economy in 2020

-supplies 2.2% of the world's oil - 15th largest producer

-major contributer to UN peace keeping missions

-second largest film industry in the world - Nollywood

Political context of Nigeria

-former UK colony that gained independence in 1960

-Political instability and civil war followed independence

-Stable governments since 1999, encouraging overseas investment(China and USA)

-a member of the Commonwealth

Social context of Nigeria

-multi-ethnic and multi-faith country

-500 languages and hundreds of ethnic groups E.g. Yoruba and Igbo

-recent religious and ethnic tensions (e.g Islamic fundamentalist group Boko Haram) have destabilised the economy

Cultural context of Nigeria

• Nollywood is second largest film industry in the world

• Nigerian football team has won African Cup of Nations three times

• Nigerian music is world famous (Fela Kuti - pioneer of afrobeats)

• well known Nigerian writers include Wole Soyinka

Environmental context of Nigeria

-tropical rainforest in the South, semi-desert in the North

-Tree crops in the south: cocoa, palm oil and rubber

-Range of field crops in north: cotton, millet, cattle

-14% of rainforest lost between 2005 and 2020

Regional variation in Nigeria

-60% school attendance in cities but 36% in rural areas

-GDP per person is highest in south and 10x lower in the north

Nigeria changing industrial structure

-employment in agriculture is decreasing due to mechanisation and rural to urban migration

-13% of the economy is now manufacturing

-rapid growth of communications, retail and finance (expanding the service sector)

-oil and gas account for 90% of Nigeria's export earnings.

How does the manufacturing industry stimulate economic development

-more profit than raw materials

-provides regular, secure incomes = more disposable income and tax revenues for further investment (positive multiplier effect)

-using oil for chemical industries - plastics and detergents

the role of TNCs in Nigeria (advantages)

+ Shell oil: direct employment and development of new skills for 65,000 nigerian workers and further 250000 jobs in related industries

+ valuable export revenue earned

+ they invest in local infrastructure, services and education. E.g. Shell has built natural gas plants, invested in healthcare, education and solar power

+ paying large amount of corporation tax 986 million dollars in 2021 to Nigeria

the role of TNCs in Nigeria (disadvantages)

- workers exploited for low prices and working conditions

- many profits go abroad- not always invested back into local environment

-most oil exported in unrefined by Shell, it is shipped to Europe and USA to be refined so most of profits leaked to HICs

-environmental damage- oil spills damage fragile coastal environments. Bodo 2008 - 11 million gallons of oil from leaks. Impacts agriculture and fishing

-Militant groups disrupt supplies, oil theft and sabotage, crimes against the Ogoni people

Nigeria's changing political relationship

-until 1960 Nigeria was part of the British Empire

-now part of the British Commonwealth

-leading member of other political and economical groups: UN, WTO(World Trade Organisation), African Union, ECOWAS, OPEC

-2013 Nigeria contributed the 5th largest number of troupes to the UN peace keeping force

Nigeria's changing trading relationship

Main imports: refined oil from EU and USA, cars from Brazil and USA, telephones from China

Main exports: high quality crude oil dominates exports, natural gas, rubber, cocoa, cotton. Importance of agricultural products reduced

Why does Nigeria receive aid?

- Limited access to safe water and electricity supply across Nigeria

- 60% of the population live on less than $1 a day

- High birth and infant mortality rates

What aid does Nigeria receive?

-receives 5 billion dollars per year in aid

-aid groups like ActionAid improved health centres. E.g. Aduwan provided mosquito nets to protect against malaria

Why has official aid been less successful than long-term sustainable aid delivered directly to communities in Nigeria?

High levels of corruption:

- Government diverts money e.g. for defence

- donors have political influence over what happens to aid

- money used for promoting commercial self-interest of the donor

Summarise the environmental impacts of economic development in Nigeria

-Oil pollution

-Deforestation

-Industrial pollution

Environmental impacts of economic development in Nigeria - Deforestation

96% of Nigeria's forests have been destroyed through logging, agriculture and urban expansion - this has led to cheetahs and giraffes disappearing as well as nearly 500 species of plants. And C02 emissions

Environmental impacts of economic development in Nigeria - Oil pollution

Shell & other TNCs → oil extraction

1 spill in Bodo 2008-09 leaked 11 million gallons of crude oil

Rivers polluted → fish die → loss of fishing income

Environmental/social impacts of economic development in Nigeria - Industrial pollution

Factories → unregulated pollution

• Lagos = 5x WHO safe limit for air pollution (PM2.5)

Impacts:

• Health problems (asthma, cancer)

• Unsafe drinking water

Positive effects of economic development on quality of life

-Nigeria's HDI has been increasing steadily since 2005

-life expectancy from 46 in 1990 to 55 in 2023

-GDP per capita ↑ from $300 (2000) → over $2,400 (2023) so More disposable income for many urban Nigerians

Negative effects of economic development on quality of life