Nigeria Case Study Flashcards

1
Q

what is the importance of Nigeria?

A

1) It has the third largest film industry in the world- “Nollywood”
2) Population of 184 million is far larger than any other African country
3) Nigeria supplies 2.7% of the world’s oil
4) In 2014, it overtook South Africa as the largest economy in Africa
5) Apart from China, Nigeria has the fastest economic growth of all the BRIC nations

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2
Q

what is the population of Nigeria?

A

184 million

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3
Q

how much of the world’s oil is supplied by Nigeria?

A

2.7%

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4
Q

when did Nigeria overtake South Africa as the largest economy in Africa?

A

2014

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5
Q

describe Nigeria’s balance between different sectors of the economy

A

1) Money earned from Services 52%, Manufacturing 7%, Oil and gas 14%, Agriculture 22%, Other 5%
2) Nollywood – 3rd largest film industry in the world
3) Rapid increase in telecommunications and retail
4) Manufacturing increasing – processed food, leather, textiles, soap, detergents

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6
Q

what was Nigeria’s GDP in…

(a) 1999
(b) 2012

A

(a) $35bn

(b) $460bn

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7
Q

how much of Nigeria’s GDP comes from oil?

A

14%

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8
Q

describe how oil stimulated economic development in Nigeria

A

1) Oil (found in 1950s) accounts for 14% GDP, 95% export earnings
2) Produces 2.7% of world’s oil which is higher quality than oil from the Middle East
3) Oil processing led to chemical by products leading to growth in chemical industries such as soaps, detergents and plastics

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9
Q

describe Nigeria’s changing economic structure

A

1) In 1999, over two thirds of people were employed in agricultures, with less than 10% employed in industry.
2) By 2012, around a third of people were employed in industry and a third in agriculture.
3) This shift towards industry has coincided with Nigeria’s economic development.
4) In 1999, GDP was $35bn but by 2012 it had rapidly increased to $460bn

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10
Q

in 1999 what percentage of people were employed in industry?

A

Less than 10%

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11
Q

describe how Dangote cement has stimulated economic development

A

1) Producing manufactured goods in the country reduces the need to import goods and can be cheaper (used to import 60% of the cement used in Nigeria however now it is self-sufficient)
2) New industries create jobs and give people an income which contributes to the country’s wealth through taxes (3 giant cement plants in Nigeria)
3) Expansion of Nigerian companies into other countries increases Nigeria’s influence (Dangote Cement has expanded into 13 other countries)
4) Improves the standard of living by supplying products and promoting FDi, leading to the multiplier effect

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12
Q

when was oil found in Nigeria?

A

the 1950s

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13
Q

what percentage of export earnings does oil account for?

A

95%

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14
Q

how has Nigeria’s importation of cement changed?

A

used to import 60% of the cement used in Nigeria but now is self-sufficient

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15
Q

how many cement plants does Dangote cement have in Nigeria?

A

3

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16
Q

how many countries has Dangote cement expanded into?

A

13

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17
Q

what are the advantages of the TNC: Shell Oil in the Niger Delta?

A

1) Provides 65,000 jobs directly and a further 250,000 jobs in related industries
2) 90% of shell contracts to Nigerian companies
3) Contribute to economy in taxes and export revenue- paid over $30bn in taxes between 2006 and 2010

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18
Q

how many jobs does Shell provide directly in Nigeria?

A

65,000

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19
Q

how many jobs does shell create in related industries?

A

250,000

20
Q

what percentage of shell contracts go to Nigerian companies?

A

90%

21
Q

how much did Shell pay in taxes between 2006 and 2010?

A

over $30bn

22
Q

what are the disadvantages of the TNC: Shell Oil in the Niger Delta?

A

1) Oil spills have caused water pollution and soil degradation, reducing agricultural production and fishing yields
2) Bodo Oil spills in 2008/09 released 11 million gallons of crude oil and £55 million compensation was awarded to the Bodo community
3) Frequent oil flares send toxic fumes into the air
4) Militant groups disrupt oil supply in the delta – two thirds of oil spills are caused by militant groups
5) Oil theft and sabotage are a big problem in the region, reducing production levels and costing the government billions of dollars a year

23
Q

how much oil was released in the Bodo Oil spills?

A

11 million gallons of crude oil

24
Q

how much of oil spills are militant groups responsible for?

A

two thirds

25
Q

describe Nigeria’s changing political and trading relationships with the wider world

A

1) Nigeria has had a trading relationship with Britain for 300 years as it was formerly part of the British empire
2) But trading more with China, the USA and India now (20% of imports are now from China)
3) Nigeria exports oil and natural commodities (e.g. cotton and cocoa)
4) Nigeria imports (e.g. machinery, chemicals and transport equipment)

26
Q

describe China’s relationship with Nigeria

A

1) 20% of Nigeria’s imports are now from China
2) Chinese investment benefits both countries as China needs more resources and Nigeria needs investment in its infrastructure
3) China has invested over $10bn in Nigeria between 2010 and 2014
4) In 2014, the China Railway Construction Corporation won a $12bn contract to build a new 1,400 km railway along the coast of Nigeria
5) In 2014, another Chinese corporation agreed to invest $10bn in exploration and drilling in a new oilfield.

27
Q

what percentage of Nigerian imports are from China?

A

20%

28
Q

how much has China invested in Nigeria between 2010 and 2014?

A

over $10bn

29
Q

what did the China Railway Construction Corporation do in 2014?

A

won a $12bn conract to build a new 1,400 km railway along the coast of Nigeria

30
Q

what did a Chinese corporation do in regards to oil in 2014?

A

agreed to invest $10bn in exploration and drilling in a new oilfield

31
Q

describe aid to Nigeria

A

1) From 2009-2013, 60 million mosquito nets were distributed to households across Nigeria as part of an international aid project funded by the World bank, IMF, and the USA government
2) In 2005, Nigeria was one of the 39 countries that was granted debt relief. In 1990, Nigeria was Africa’s most indebted country with $36bn in debt, so in no longer had to cut essential government spending
3) The UK department for International Development funded a health and HIV programme, providing health education in rural areas
4) In 2014 the World Bank approved $500 million to fund development projects and provide long term business loans. This helps reduce overdependence on oil exports.

32
Q

how many mosquito nets were distributed from 2009 to 2013 as part of an international aid project funded by the World bank, IMF, and US gov.?

A

60 million

33
Q

how much debt did Nigeria have in 1990?

A

$36bn (making it Africa’s most indebted country)

34
Q

when was Nigeria granted debt relief?

A

in 2005 (along with 39 other countries)

35
Q

how much did the World Bank loan Nigeria in 2014 and why?

A

$500 million to reduce Nigeria’s overdependence on oil exports by funding development projects and providing long term business loans

36
Q

why is aid not used effectively in Nigeria?

A

1) Corruption in government and individuals
2) Government diverts money for other purposes (navy)
3) Donors have political influence on what happens to aid
4) Money can be used to promote commercial self-interest of donor

37
Q

what are the environmental impacts of economic development in Nigeria?

A

1) 80% of forests have been cut down, increasing CO2 emissions and leading to a loss of biodiversity (giraffes and cheetahs)
2) Urban growth leads to high levels of traffic congestion (average Lagosian spends 3 hours a day in traffic), squatter settlements (e.g. Makoko) and issues with Waste Disposal
3) desertification is a major problem, worsened by large scale dam and irrigation schemes
4) Mining industry has caused toxic chemicals to be discharged in open sewers risking human health and freshwater ecosystems which is a problem as many people depend on fish for their livelihood
5) Bodo oil spills in 2008/09 devastated swamps and its ecosystems as 11 million gallons of crude oil was released
6) industrial chimneys emit poisonous gases leading to respiratory problems

38
Q

how much money was paid in compensation to the Bodo community?

A

£55 million

39
Q

when were the Bodo oil spills?

A

2008/09

40
Q

what percentage of Nigeria’s forests have been cut down?

A

80%

41
Q

how long does the average Lagosian spend in traffic every day?

A

3 hours

42
Q

give an example of a squatter settlement

A

Makoko

43
Q

how has economic development impacted on the quality of life for the Nigerian population?

A

1) Life expectancy has increased from 46 to 53 years. 64% have access to safe water. Typical schooling years has increased from 7 to 9.
2) New jobs mean more income and increased quality of life
3) Large differences between north and south; rural and urban; educated and uneducated
4) Lack of access to safe water, sanitation and reliable electricity supply
5) Oil wealth not used effectively.
6) Overdependence on oil may become an issue as oil prices fall and new technology such as fracking develop

44
Q

how much has life expectancy increased?

A

from 46 to 53 years

45
Q

what percentage of the Nigerian population have access to safe water?

A

64%

46
Q

how much have typical schooling years increased in Nigeria?

A

from 7 to 9

47
Q

how has Nigeria’s political relationships with the wider world changed

A

civil war and terrorism from the Boko Haram in Nigeria mean that it has a poor political reputation and some countries do not wish to deal with it