Shell, Nigeria

Question 1

Background info to Nigeria

Answer 1

4.5 million (1960) - 205 million (2020) - 320% increase

In 2050, 401 million (double in size) - 3rd most populous country in the world, most populous country in Africa

As population increases, economy increases

Corruption still occurs in government

Lagos is the largest city by area and population

Religious differences some Christian and others Muslim

Question 2

Describe the location of Nigeria

Answer 2

Nigeria is located in the northern hemisphere
Nigeria is on the west coast of Africa near the Gulf of Guinea
Nigeria is between the topic of Cancer and the Equator
Nigeria borders 4 countries

Question 3

State some of the positives of life in Nigeria

Answer 3

Growth in industrial and manufacturing service sector

Investment by other countries through building projects

Possibly Africa’s first superpower

Question 3

Negatives of life in Nigeria

Answer 3

Overpopulation

Rise of terrorist group Boko Haram

Climate Change - Lagos at risk of rising sea levels

Question 4

State the (economic) regional importance of Nigeria

Answer 4

Nigeria has highest farm output in Africa

Most farmers are subsistence farmers (Cattle herding is popular)

Nigeria started to diversify its economy

Now includes financial services, telecommunications and media

Lagos a thriving economic hub

There are huge variations regionally in wealth and development

Question 5

State the (physical geography) regional importance of Nigeria

Answer 5

Nigeria is country in West Africa

Northern Nigeria is a semi-desert

Savanna dominates further south where grazing and crop are grown

Southern Nigeria has high temperatures and high annual rainfall.

Question 6

State the (social/cultural context) regional importance of Nigeria

Answer 6

60% of children in urban areas attend secondary school
Only 36% in rural area

Nigeria encourages rural-urban migration.

Nigeria is multifaith country
Christianity, Islam and traditional African religions widely practised
Diversity is a source of strength but also conflict

Question 7

How manufacturing industry
can stimulate economic development

Answer 7

Manufacturing accounts for 10% of Nigeria’s GDP

Australia and Indonesia biggest customers of Nigerian cotton

The growth of the manufacturing industries has led to economic development

Regular paid work provides a secure income

More people are employed

Revenue from taxes increase: providing education, healthcare and infrastructure

A thriving industrial sector attracts foreign investment

This stimulates further economic growth

The growth in manufacturing leads to the multiplier effect, which means other industries develop to supply parts.

Chemical by-products from oil processing have led to the growth of chemical industries.

Question 7

State the (economic) global importance of Nigeria

Answer 7

Nigeria is a NEE

Nigeria supplies 12th largest producer of oil

Worlds 21st largest economy
By 2050 should be top 20

Founding member of continental union of 55 countries

Question 8

State the (political) global importance of Nigeria

Answer 8

Nigeria fifth largest contributor to UN peacekeeping missions around the world

Question 9

State the (social/cultural) global importance of Nigeria

Answer 9

Nollywood - Nigeria’s largest film industry globally in terms of output

Third largest in terms of overall revenues generated

Question 9

What are the advantages of Nigeria hosting TNCs

Answer 9

Companies provide employment and the development of new skills

Valuable export revenues are earned

Investment by companies goes into the local infrastructure and education. More money is spend in the economy

Other local companies benefit from increased orders

Question 10

Describe the changing industrial structure.

Answer 10

Nigeria’s economy is becoming more balanced with a shift from primary employment to growth in secondary and tertiary industries.
For example in 1999 the percentage of workforce in Primary Industries were 70%. This has decreased by 30% in 2014.
However both the secondary and tertiary industries have seen an increase from 1999 to 2014. (Secondary industry from 10% to 35% and Tertiary industry from 20% to 25%)

Question 10

Give some examples of Primary. Secondary, Tertiary and Quaternary

Answer 10

Primary - Farming , Fishing, Agriculture
Secondary - Manufacturing
Tertiary - Services (Teachers, Nurses, Doctors, Uber drivers etc. )
Quaternary - High tech, research jobs, science

Question 10

What are the disadvantages of shell in Nigeria to the host country (ENVIRONMENTAL)

Answer 10

Environmental

Oil spills have polluted the surrounding waters; harming biodiversity and fish yields
Caused soil degradation, which has reduced agricultural production
Oil pollution from tankers off-shore also damages the marine ecosystem and kills fish and other marine wildlife

Militant groups disrupt the oil supply in the delta by destroying well heads

Frequent oil flares send toxic fumes into the air to burn off the gas from the oil
This affects people’s health and contributes to global warming

Question 10

Explain the changing industrial structure

Answer 10

Mechanisation and rural to urban migration have led to a decline in the number of people employed in agriculture. As a result the percentage of workforce in primary industries has decreased.

The percentage of workforce employed in the secondary and tertiary industries have increased. Manufacturing and services have grown due to Nigeria’s increased political stability. Countries such as China, the USA and South Africa have heavily invested in Nigeria. There has also been considerable growth in the service sector, mainly IT services.

The fastest-growing sector in Nigeria is manufacturing. A combination of the cheap and plentiful labour force and its vast market, both within and beyond the country, has led to rapid economic growth.

Question 10

What are the disadvantages of shell in Nigeria to the host country (Social, Economic and Political)

Answer 10

Social,Economic and Political
Oil theft and sabotage are big problems costing TNCs and the government billions

Tankers transport the oil to the USA and Europe where it is refined. The profits go to abroad and not the host country (NIGERIA)

Question 10

Why do TNCs locate in foreign countries

Answer 10

Tax incentives. TNCs pay lower amounts of tax in other countries
Cheaper labour
Laxer environmental laws
Access to a wider market

Question 10

What are the disadvantages of Nigeria hosting TNCs

Answer 10

Working conditions can be very poor

Local workers are sometimes paid poor;y
Much of the profit generated goes abroad
Management jobs often go to foreign employees brought in by the TNC
The grants and subsidies used to attract TNCs could have been used to invest in the Nigerian Industry

Question 10

Where is shell

Answer 10

Shell is an Anglo-Dutch company with its headquarters in the Netherlands

Question 11

Advantages of shell in Nigeria to the host country

Answer 11

Gives 91% of its contracts to Nigerian companies
Making major contributions to taxes and export revenue
Providing direct employment for 65,000 workers and a further 250,000 jobs in related industries
Supports the growth of Nigeria’s own energy sector
Provided 3000 scholarships to secondary schools and universities, providing healthcare for 1/4 million people and micro finance schemes

Question 11

Disadvantages of Aid

Answer 11

Countries may become dependent on aid and development may stall
It does not always reach the people who need it due to corruption and mismanagement
It is not always appropriate: large scale projects such as dams can end up creating more poverty for some people

Question 12

Define standard of living

Answer 12

Standard of living is based primarily on income and what that level of income will allow a person to buy in the way of necessities and luxury goods
(REFERS to level of wealth, comfort, material good and necessities available within a certain geographical area)

Question 12

the changing political and trading
relationships with the wider world

Answer 12

Nigeria was part of the British Empire and development was held back until 1960 when Nigeria gained independence
Civil war between 1967 and 1970 further hampered the development

Multi-ethnic and multi-faith society
Three tribal groups dominate Nigeria, the Hausa in the north and Igbo and Yoruba in the south
GDP is higher in the south due to oil reserves and investments
Urban areas have a greater share of public services and facilities

Social diversity has created a rich and varied artistic culture
It has thriving music, film and literary sectors
‘Nollywood’ is the second largest film industry in the world

Over 65% of Nigerians are farmers and Nigeria relies on agriculture and farming
South has better physical conditions such as higher rainfall and access to oil reserves in the Niger Delta
The north is semi-arid and suffers drought and desertification.

Question 12

Different types of aid

Answer 12

Emergency aid
Development aid

Question 13

Issues with giving aid to Nigeria

Answer 13

Corruption in the government, and by individuals, is a major factor in loss of aid

The government may divert money to be used for other purposes. For example, there are claims that aid may have been used to build up Nigeria’s navy.

Donors may have political influence over what happens to aid

Money may be used to promote the commercial self-interest of the the donor

Question 13

the environmental impacts of economic
development

Answer 13

The Niger Delta in southern Nigeria is one of the most polluted places on Earth
Oil spills have damaged marine and land based ecosystems and polluted water supplies
Fires are destroying plants, creating soil erosion, and contributing to acid rain

toxic chemical discharge into drains and open sewers in cities such as Lagos and Kano. This poses considerable danger to public health and ecosystems

up to 80% of Nigeria’s forests have been lost. Deforestation has led to increased soil erosion and an increase in climate change gases being released into the atmosphere. An important carbon store has been lost due to deforestation.

The countryside has been lost to the construction of squatter settlements and industry. Inadequate sanitation and increased domestic and industrial waste has caused watercourses to become polluted. Urban growth has also led to a rapid increase in the amount of traffic, leading to increased air pollution and greenhouse gas emissions.

Question 14

Impacts of aid on the recieving country

Answer 14

Aid has benefitted many people especially through community based projects

The Aduwan Health Centre in Northern Nigeria, supported by ActionAid and the World Bank, which provides vaccinations and general healthcare, particularly for mothers and babies

Anti-mosquito nets provided by the organisation ‘Nets for Life’

Support for orphans and vulnerable children comes from Community Care in Nigeria, funded by USA AID

Aid from the USA helps educate and protect people against AIDS/HIV

The UK Department of Internationals Development has funded a health and HIV programme, providing health education in rural areas

Question 15

Define quality of Life

Answer 15

Quality of Life is used to evaluate the general well-being of individuals and societies - a qualitative measure, difficult to measure, commonly measured by HDI levels

Question 16

the effects of economic development on
quality of life for the population.

Answer 16

Reliable and better paid jobs provide security and enable people to spend money on home improvements, accessing health care and education

Although many people in Nigeria remain poor, especially in the rural areas of the north, a lot of people have benefited from economic development

A higher disposable income to spend on food, clothes, and leisure activities

Nigeria’s Human Development Index (HDI) has increased steadily since 2005 from below 0.47 to 0.539 today

Improved living conditions provide better performance at work and school
Adult literacy rate is estimated to be 62% among Nigerians aged above 15 years and years of schooling is 9 years an increase from 6.7 years

Better quality healthcare: Easier access to doctors and better equipped hospitals increase life expectancy and reduce infant mortality
Life expectancy has increased from 45.66 in 1980 to 55.02 in 2020
The number of doctors available per 1000 people is just 0.4 (UK is 3.5 doctors per 1000

mprovements to safe drinking water and sanitation increase the overall health of people
In rural areas, 39% of households lack access to at least a basic water supply, while only half have access to improved sanitation and almost a third (29%) practice open defecation
In urban areas 48% of people have access to basic drinking water sources, and 33 percent have access to sanitation but only 3% of people have piped water and sanitation to their homes

Reliable electricity supplies that provide lighting and heating
Over 70% of Nigerian’s now have a mobile phone
38% have internet access

However, individual and government corruption is still a problem
60% of Nigerians live in poverty of less than US$1 a day
Basic services provisions need to be a priority
Ethnic and religious conflicts need to be addressed and carefully