Nigeria: A NEE

General Facts and Figures

Nigeria's Importance

Context

Political Links

Global Importance

Continental Importance

Nigeria could lead the way in Africa's future development.

Highest farm output in Africa. 40% of the population are employed in agriculture

Largest number of livestock in Africa. Over 19 million cattle

Highest GDP in Africa (2014) and the third largest manufacturing sector

The 12th largest producer of oil, supplying 2.7% of the world's oil.

Very diverse economy, including financial services, media and telecommunications

5th largest contributor to UN peacekeeping missions

21st largest economy (2014)

Borders 4 countries - Benin, Chad, Cameroon, Niger
Also borders the Atlantic ocean

South - Hot and wet most of the year
North - Long, dry seasons

Lagos is a mega-city (the 4th largest in the world) with a population of 13.5 million

Population of more than 182 million people

Political Context

Social Context

Cultural Context

Environmental Context

North

Semi- dessert and savanna areas. Mainly used for grazing cattle

Jos Plateau

Densely populated by farmland and woodland. Wetter and cooler than the north 

South

High temperatures and rainfall. Lots of forest with crops like rubber and cocoa. Hard to keep cattle due to tsetse fly which transmits a parasite that kills livestock

Ethnic groups include:

  • Yoruba (21%)
  • Hausa and Fulani (29%)
  • Igbo (18%)
  • There many other smaller groups

There was a civil war from 1967-1970

Economic inequality between the north and the south religious and ethnic inequality

The Islamic fundamentalist group Boko Haram has had a negative impact on the economy. Causing a rise in unemployment and reduced overseas investment

Nigeria became fully independent from the UK in 1960

Until 1999 a lack of political stability affected Nigeria's development and lead to widespread corruption

Several countries are investing in Nigeria:

  • China - Investments in construction in Abuja
  • South Africa - Investments in business and banking
  • America - Companies such as General Electric are investing in new power plants

Nollywood is the second largest film industry in the world

The Nigerian football team has won AFCON 3 times

CEN-SAD (Community of Sahel-Saharan States) and ECOWAS (Economic Community of West African States). They are both trading groups

African Union - Economic planning and peacekeeping group. In alliance with its bordering countries to provide troops

OPEC (Organisation of Petroleum Exporting Countries) - Aims to stabilise the price of oil and ensure a regular supply

Nigeria's main export is crude oil. NIgeria has high quality 'sweet oil' with less than 42% sulphur

Only Ivory-Coast and Ghana are significant trading partners in West-Africa

Nigeria has 50 years of oil left (based on the current rate of production)

Changing Industrial Structure

Changes from 1999 - 2012:

  • The primary sector has fallen drastically due to a sharp increase in the use of farm machinery
  • Increased employment in oil production, manufacturing, sugar refining etc.
  • Growth of communications, retail, and finance

Why is the economy developing:

  • Rapid advances in tech
  • A greater concern for the environment
  • Info-tech is starting to drive the economy instead of oil
  • Investment in science and tech training

How is manufacturing affecting economic development:

  • Steady pay means people are more likely to but things such as cars and clothes
  • As industries grow, more people are employed and the government receives more taxes
  • Attracts foreign investment
  • Oil processing has created lots of chemical by-products which has lead to a huge range of chemical industries e.g. soaps and plastics

Manufacturing accounts for 10% of Nigeria's GDP

Impacts of TNC's

Advantages:

  • Provide jobs and development of new skills
  • More money spent in the economy
  • Investment in local infrastructure and education
  • Export revenue

Around 40 TNC's operate in Nigeria

Disadvantages:

  • Local workers can be poorly paid
  • Working conditions can be poor
  • Higher paid and skilled jobs o to employees brought in by the TNC
  • Most of the profit goes abroad
  • Grants and subsidies used to entice TNC's could have been used elsewhere

Unilever

Anglo-Dutch TNC that produces food, drinks and household items

Operations started in 1923 using palm oil to produce soap. It has diversified since then

Currently employees around 1500 people

Works with local cultures and markets to develop new products

Voted 2nd best place to work in 2014

Shell Oil

Benefits:

  • Major contributions to taxes and export revenue
  • 65,000 direct jobs, 250,000 indirect jobs
  • Supporting the growth of Nigeria's energy sector
  • 91% of Shell contracts go to Nigerian companies

Drawbacks:

  • Oil spills have caused water pollution and soil degradation, causing a reduction in agricultural production and fishing yields
  • Oil flares send toxic fumes into the air
  • Militant groups disrupt oil supply
  • Oil theft and sabotage cost TNC's and the government billions each year

Anglo-Dutch company founded in 1958

Impacts of International Aid

Emergency aid - Usually follows a natural disaster or some sort of conflict


Developmental aid - Long-term support given by charities, governments and multi-lateral organisations

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

Received $5000 million in aid in 2013

Aduwan Health Centre

Built by ActionAid in 2010

Trains women about the importance of immunising their children aginst polio other diseases

Test forHIV and other infections

What prevents aid from being used effectively?

  • A corrupt government
    • The government may divert money for other purposes e.g. claims that aid may have been used to build up Nigeria's navy
  • Donors may influence what happens to aid

Managing Environmental Issues

Industrial Growth

5000 registered industrial plants and 10,000 illegal small-scale ones

70%-80% of Nigeria's forests have been destroyed

Improper disposal of chemical waste

Desertification made worse by large scale dam and irrigation schemes

Urban Growth

Squatter settlements are common in most cities

Services cannot keep up with the rate of growth

High levels of exhaust emissions from traffic congestion

Bodo Oil Spills
2008/2009

11 million gallons of crude oil spilled over a 20km area

Shell agreed to pay £55 million in compensation

Shell agreed to clean up swamps and fishing grounds

Quality of Life

60% of Nigeria's population lives in poverty

Requirements for improvement

  • Political - A stable government
  • Environmental - Fixing problems such as pollution from oil spills and finding ways to over come things like tsetse fly
  • Social - Mending the divide between the Muslim North and the Christian South

Revenue from oil has not been used effectively

Better paid jobs in services or manafacturing industries

Better access to safe water and sanitation

Improvements to infrastructure and roads