Shell Oil TNC in Nigeria

?

Shell Oil TNC in Nigeria

Advantages

  • Main source of investment in oil + gas explorations by supporting the construction of oil and gas platforms
  • Created employment opportunities - 6,000 direct jobs - contributed to the economy as 90% of employees are Nigerian
  • Many Nigerian companies have won contracts with TNC's - 20,000 indirect jobs
  • Government benefits from taxes to improve education, healthcare and services
  • Provided 3000 scholarships to secondary schools + universities, providing healthcare for 1/4 million people and micro finance schemes.

Disadvantages

  • Tankers transport oil to USA and Europe where it is refined - profits go to abroad not the host country
  • Can exploit the low wage economy and avoid paying local or even full taxes
  • Many oil spills - 9billion barrels worth since 1958 which damaged the Niger Delta environment + fisheries
  • Shell does gas flaring which is illegal - increased air pollution
  • Social unrest has lead to theft, sabotage, and violent crime

Evaluation

Overall, there have been many employment opportunities provided to the Nigerian people and there have been many social benefits however Shell has exploited Nigerian people for the resources in their country and left them with devastating effects so I believe they are not as successful.

Comments

staerzzz

Report

tysm

Similar Geography resources:

See all Geography resources »See all Economic change resources »