Changing Economic World - Nigeria

Question 1

What is Nigeria’s regional importance?

Answer 1

Large number of UN peacekeepers working in Africa come from Nigeria. Largest population and economy in Africa – seen as a leader within the continent.

Question 2

What is Nigeria’s international importance?

Answer 2

21st largest economy, 12th largest oil exporter

Question 3

What is the wider political context of Nigeria?

Answer 3

The wider political context :
Gained independence from the UK in 1960, civil war 1967-1970, first free and fair election in 1999, 2009 Boko Haram launches terror campaign.

Question 4

What is the wider social context of Nigeria?

Answer 4

The wider social context :
life expectancy 52 years, literacy rate 61%. Rural areas are much poorer than urban areas. The north east is wealthiest, the south east is poorest.

Question 5

What is the wider cultural context of Nigeria?

Answer 5

The wider cultural context :
Many different ethnic groups, Nollywood (larger than Hollywood), successful football team

Question 6

What is the wider environmental context of Nigeria?

Answer 6

The wider environmental context :
Driest in the north of the country – less than 500mm rainfall
each year. Niger river runs out into the Atlantic where a large delta has formed. Large oil reserves along the south coast and delta.

Question 7

What is Nigeria’s changing trading relationships with the wider world?

Answer 7

• 12th largest exporter of oil. Also exports cocoa, cotton and natural gas
• Exports mainly to the EU, USA and India.
• Imports manufactured products mainly from China and the EU
• Fastest growing import = telephone from China

Question 8

What is Nigeria’s changing political relationships with the wider world?

Answer 8

1960 independence. Now a member of the Commonwealth.
Increasingly taking a leading role in Africa – 5th largest contributor of UN peacekeepers.

Question 9

What is Nigeria’s changing industrial structure and the balance between different sectors of the economy?

Answer 9

• 65% of Nigerians work in the primary sector. 25% of the population are involved in oil extraction (primary)
• The percentage of people in secondary sector jobs is increasing quickly.

Question 10

How can the manufacturing industry stimulate economic development in Nigeria within employment?

Answer 10

• Employment in manufacturing -> higher and more reliable income than a farmer -> can afford to buy things for a better quality of life e.g. more food and medicines. Money spent in local businesses passes through the community = multiplier effect

Question 11

How can the manufacturing industry stimulate economic development in Nigeria within employment within more factories?

Answer 11

• More factories -> tax paid to the government -> government can spend this on improving services e.g., health care and schooling boosting literacy levels and life expectancy, so the income from the factories spreads through the country = multiplier effect.

Question 12

What’s an example of a TNC in Nigeria and its impact?

Answer 12

Shell : a British-Dutch oil company
- Shell directly employs 65 000 people in Nigeria
- Gas and oil extraction, oil refineries.
- Indirect employment through related industries

Question 13

What advantages has the TNC in Nigeria created?

Answer 13

• Shell spends money to develop infrastructure (e.g. roads) to help it extract and process oil.
• Improved infrastructure attracts other manufacturing industries
• Other businesses set up to help supply Shell refineries with the components they need creating 250 000 jobs
• More businesses are set up so the government gets more tax revenue (75% of the government’s revenue comes from the oil and gas industry) to spend on improving services like health care -> quality of life increases.

Question 14

What disadvantages has the TNC in Nigeria created?

Answer 14

• Some oil refineries and pipelines are not well maintained -> Oil spills reduce fish yields and make farmland infertile. Oil flares (fires) release harmful fumes
• Groups like Boko Haram target oil pipelines causing conflict and oil spills
• Shell keeps the majority of the profits from the oil industry (economic leakage!!)

Question 15

How is aid distributed in Nigeria?

Answer 15

63% spent on improving health, 6% spent on education. Most aid is multilateral (from an organisation involving many countries) e.g. the World Bank funding medical supplies. The USA and UK are major donors.

Question 16

Impacts of aid in Nigeria?

Answer 16

+ Aid involving appropriate technology is successful e.g. mosquito nets has been very successful, reducing the spread of malaria.
+ Improving health care -> more people can work -> incomes increase -> people can afford a better quality of life.
+ Improving health care -> more children can stay in school -> increased literacy rate
- some money is lost due to corruption, aid money can be spent on other things, by giving aid other countries may start to try to influence the politics of Nigeria.

Question 17

What are the environmental impacts of economic development ( e.g. more factories )

Answer 17

• Air pollution – 5000 factories. Gases released such as sulphur dioxide. Oil flares releasing toxic fumes. Traffic fumes.
• Water pollution – from oil leaks e.g. Bodo oil spills 2008-9, 20km of creeks flooded.
• Deforestation – loss of 70-80% of all forests in Nigeria, habitats for giraffe and cheetahs destroyed
• Waste – more rubbish and sewage as urban areas grow e.g. in Lagos

Question 18

What are the effects on the quality of life for the population from economic development in Nigeria?

Answer 18

• As the country develops incomes have risen so people can afford to buy what they need
• As the GDP of the country has risen the government has received higher tax revenues to spend on services e.g. health care and schools.
• Life expectancy rose from 46-52 years from 1990-2013
• Access to safe water rose from 46-64% from 1990-2013