Nigeria - Case Study

Where is Nigeria?

- Central-western African country, with a south-facing coastline and tropical climate, bordering Cameroon, Benin, Chad, and Niger.

-  It has a tropical climate with rainy and dry seasons in different parts of the country. 

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Newly Emerging Economy

Definition: Countries that have begun to experience high rates of economic development, usually along with rapid industrialization 

-          Experiencing a period of rapid economic growth. Nigeria has the 21st largest economy in the world.

  Why is Nigeria's economy developing? 

- Rapid advances in technology 
- information technology is beginning to drive the country rather than oil 
- there is a greater concern for the environment 
- investment in science and technology training 
- increased use of telecommunications - Nigeria is able to benefit from global finance and trade. 

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Global Importance of Nigeria

Nigeria is a Newly – Emerging Economy (NEE).  

-  One of the countries that experience rapid economic development.  

-  2014 – World's 21t largest economy. 

-  2050 – In top twenty (Expectation). 

-  Nigeria is predicted to have the world's highest average GDP growth for 2010-15.  

-  Nigeria supplies 2.7% of the world's oil – 12th largest producer.  

-  Based on oil. 

 - Very diverse economy – media, telecommunications and financial services.  

-  Politics: Nigeria is the 5th largest contributor to UN peacekeeping force around the world. 

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Nigeria's importance in Africa

Nigeria has one of the fastest growing economies in Africa. In 2014 it had the highest GDP in the continent and the third largest manufacturing sector. With a population of more than 182 million people, it has the largest population of any African Country. It has the highest farm output In Africa. 70% are employed in agriculture.  

Food crops: Yams, cassava, sorghum, and millet. 

Nigeria has over 19 million cattle, the largest number in Africa. Nigeria could lead the way in Africa's future development. Despite its problems with internal corruption and lack of infrastructure, the country has great potential. Barack Obama said Nigeria is:

 "Critical to the rest of the continent and if Nigeria does not get it right, Africa will really not make progress.” 

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Nigeira's Political and social context

Political: 

Became independent from the UK in 1960, had difficulties and civil wars until 1999, since then it has been stable, and has investment China, USA, and South Africa as a result.

Social:

            - An ethnically diverse multifaith country.

           - Yoruba – 21%

           - Hausa  and the Fulani – 29%

           - Igbo – 18%

           + Many other small groups.                            

           - Christianity, Islam and traditional African religions – practiced widely.

          - Some social disharmony has arisen more recently in contrasting part of the country, which has negatively impacted foreign investment confidence.

 

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Regional and Environmental Aspects

Regional Variations:

60% of children attend secondary school in urban areas, but only 36% in rural areas, encouraging rural-urban migration. GDP per person also varies greatly across the country.

Environment:

Contrasting tropical climates from hot and wet in the south - leading to tropical rainforests, through savannah and eventually semi-desert in the far north as rainfall reduces.

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Nigeria - Wider world links

Member of: AU (African Union) – Economic planning and peacekeeping group. Nigeria is in alliance with Niger, Chad, Benin, and Cameroon to provide troops.

 OPEC (Organisation of Petroleum Exporting Countries) – Aims to stabilize the price of oil and to ensure a regular supply.

 The UN – In 2013, Nigeria contributed the 5th largest no of troops to the UN peacekeeping force.

The Head of ECOWAS (Economic Community of West African States) – Trading group made up of countries of West Africa – Headquarters in Abuja 

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Nigeria’s Global Trading Relationships

Nigeria’s Global Trading Relationships

Nigeria’s main exports are crude and refined petroleum, natural gas, rubber, cocoa, and cotton. Main imports are refined petroleum from the EU and the USA, cars from Brazil from Brazil and the USA, telephones, rice, and wheat.

Fast growing imports – Telephones from China, it ranks 7th in the world (UK – 16th)

Mini Case Study:

Crude Oil – Crude oil dominates Nigeria’s exports. Until 2013, the USA was Nigeria’s biggest customer. Nigeria’s oil is described as ‘sweet oil’ – oil with less than 42% sulfur. It is higher quality than oil from the Middle East, and suitable for refining into gasoline (fuel). Until recently the greatest demand from the USA, however, with the recent development of shale oil in the USA, demand for Nigerian oil has fallen. India is now the biggest customer. Between 2013 and 2014 exports of crude oil to India, China, Japan, and South Korea have increased by 40%. 

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Growing manufacturing sector

Growing manufacturing sector

Regular paid work raises local spending and creates more tax revenue, allows reinvestment in infrastructure which attracts foreign investment and growth

TNCs

Transnational Corporations - large global companies - 40 operate in Nigeria; Unilever and Shell are two major ones.

TNC advantages

Employment opportunities, investment in infrastructure, valuable export income earned, increased local spending.

TNC disadvantages

Sometimes poorly paid, much profit goes abroad, limited number employed, grants could have been invested in Nigeria businesses.

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AID

Types of Aid

Assisting with emergency (short term) and developmental (long term) support.

Aid in Nigeria

Received 4% of all aid entering Africa. Mainly spent of health, and then infrastructure. Some corruption issues have reduced the effectiveness of aid reaching intended destination.

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Environmental Impact of economic growth

Environmental Impact of economic growth

Industrial growth has lead to widespread air and water pollution in cities, deforestation, and desertification. Urban growth has to lead to huge slums - home to millions in polluted cities. Mining and oil extraction has led to huge scale environmental damage.

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Quality and the Inequality

Quality of life

Nigerians are experiencing a steady rise in quality of life (contentedness) as shown by the HDI improving constantly since 2000.

Inequality in Nigeria

Despite economic growth, the inequalities are very contrasting with tens of millions still in poverty. Corruption, social disharmony as well as a suffering environment all play a part.

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Nigeria - A Newly Emerging Economy

Welcome 

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Comments

MustafaAL

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Thank you, very helpful

Goldenteen

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OMG THANK YOU SO MUCH FOR SHARING, I AM SO DELIGHTED TO FIND SUCH A RESOURCE TO REVISE FROM.

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