Nigeria

Exploring Nigeria

  • Location:
  • West Africa
  • captial is Abuja
  • Global importance of Nigeria:
  • 21st largest economy
  • will be the third biggest country in the world in 2050
  • 12th biggest oil seller
  • 5th largest contributor to UN peacekeeping
  • Importance in Africa:
    highest GDP in 2014
  • highest farming output in Africa
  • could lead the way in Africa's future development as it has huge potential
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Political, social, cultural and environmental aspe

  • Political:
  • gained independence in 1960
  • stable government since 1999
  • China is making major investments in construction in the capital, Abuja
  • Social:
  • multi-faith: Islam, Christianity and traditional African religions
  • different ethnic groups: Yoruba (21%), Hausa and Fulani (29%) and Igbo (18%)
  • economic inequality between the north and south has created religious and ethnic tensions, with rise of Boko Haram. This has created an unstable situation. 
  • Cultural:
  • Nigeria has won the African cup of nations 3 times
  • 'Nollywood' is the second largest film industry in the world
  • Environmental:
  • North: Sahel and Sahara desert, and Savanna
  • South: high temperatures, high rainall, forests- no cattle.
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Political and economic links

  • Political links:
  • Commonwealth
  • African union: economic plannin and peacekeeping groups. Provides troops
  • UN: in 2014, it had contributed the 5th largest number of peacekeeping troops
  • Trading relationships:
  • 30% of Nigeria's total trade is with the EU
  • Top importer is China - produces mass goods for cheap labour
  • Only two African countries among top trading partners
  • Why Nigeria has an important role to play regionally and internationally:
  • Exports across Africa but also with other countries and has trade links globally
  • Produces oil which is very valuable and is needed across the world
  • Biggest exports: crude oil (sweet oil), cocoa and rubber (all raw materials)
  • Biggest importer: telephones from China (7th biggest phone owners in the world)
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How Nigeria's economy is changing

  • 1960: was mainly agucultural exports to UK and the British empire
  • 2018: oil (14% GDP and 98% export earnings)
  • Sectors of employment:
  • employment in agriculture (primary sector) has fallen 
  • industrialisation and economic growth (secondary) has increased employment in oil production and manufacturing industries such as construction
  • growth of communications, retail and finance( in the tertiary sector)
  • these changes result in a more balanced economy
  • Why Nigeria's economy is developing:
  • many people speak English (grwoth potential in telecommunications)
  • IT is beginning to drive the economy rather than oil
  • rapid advances in technology
  • Why Nigeria can manufacture goods:
  • large home market  for purchasing prodcuts e.g. cars
  • cheap labour force
  • money from oil to invest
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How manufacturing is affecting economic developmen

  • regular paid ork gives people a more secure income and provides a large home market
  • manufacturing industries stimulate growth through close links with each other, e.g. companies supplying parts for making cars
  • as industries grow, more people are employed and revenue from taxes increase
  • a thriving industrial sector attratcs foreign investment 
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Role of TNCs in Nigeria's development

  • TNC: a company that operates in several countries. Usually  HQ is in one country, and production in others
  • They locate in foregin countries to take advantage of:
  • tax incentives
  • cheaper labour
  • laxer environmental laws
  • access to a wider maket
  • Advantages:
  • companies provide employment and skill development
  • more money is spent in the economy
  • investment by companies in local infrastructure and education
  • Disadvantages:
  • working conditions are sometimes very poor
  • much of the profit generated goes abroad
  • management jobs often go to foreign employees brought in by the TNC
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Shell oil in the Niger Delta

  • Shell oil has been able to invest huge amounts of money and expertise into extracting oil in Nigeria
  • Benefits:
  • providing direct employment for 65,000
  • giving 91% of Shell contratcs to Nigerian companies
  • supporting the growth of Nigeria's energy sector
  • Problems:
  • oil spills have caused water pollution and soil degradation, reducing agricultural production and fishing yield
  • requent oil flares send toxic fumes into thr air
  • militant groups disrput oil supply in the delta
  • oil theft and sabotage are big problems in the region, reducing production levels and costing TNCs and the government billions of dollars every year
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Impact of international aid

  • There are two main types of aid:
  • emergency aid
  • developmental aid: long-term support given by charities, governments and mulit-lateral organisations. Aims to improve quality of life
  • Why Nigeria gets aid:
    Many people are poor, 100 million live on less than US$1 a day
  • Impact of aid:
  • most successful type of aid is by NGOs (e.g. Amnesty)
  • How aid benefits Nigeria:
  • Aid from USA helps educate and protect people against the spread of HIV/AIDs
  • NGO 'Nets for life' provides education on malaria prevention and distributes anti-mosquito nets to many households
  • UK aid has helped 780,000 births (improves HDI) and 840,000 have access to clean drinking water
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Environmental impacts of economic development

  • Industrial growth:
  • harmful pollutants go into open drains and water channels
  • some industries dispose of chemical waste on nearby land
  • industrial chimneys emit poisonous gases that can cause respiratory and heart problems 
  • Urban Growth:
  • squatter settlements are common
  • waste disposal has become a major issue
  • traffic congestion leads to high levels of exhaust fumes
  • Mining and oil extraction:
  • tin mining led to soil erosion
  • oil spills have disastrous impacts on freshwater and marine ecosystems
  • Bodo oil spills: 2008/2009
  • fishermen lost their jobs so thier kids couldn't go to school
  • contaminated water, so fish died
  • thousands of hectares of mangrove were destroyed
  • Shell's compensation: 16,000 Nigerians (fishermen) received $3300, remaining $30m to community. They also pledged to clean the Bodo Creek up,
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How economic development has affected the quality

  • better acces to safe water and sanitation
  • improvements to infrastructure such as roads
  • better-quality healthcare with more hospitals and doctors
  • reliable, better-paid jobs in manufacturing industries or services
  • higher disposable income to spend on schooling, food, clothes and home improvements
  • Still problems:
  • many people are still poor with limited access to safe water and sanitation
  • oil wealth has not been used effectively (due to corruption)
  • Will quality of life continue to improve:
  • political- the need for a continuing stable government to encourage investment
  • environmental- pollution of Niger Delta by oil spills has devastated lives. Pests like the Tsetse fly restrict commerical livestock farming. Parts of the north are at risk from desertification
  • social- historical distrust remains between tribal groups. Religious divide between Christian south and uslim north. Boko Haram spread fear among investors
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Nigeria

NIGERIA

(a case study of an LIC or NEE)

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