Nigeria Case Study

Question 1

what is the importance of Nigeria?

Answer 1

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

Question 2

what is the population of Nigeria?

Answer 2

184 million

Question 3

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

Answer 3

2.7%

Question 4

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

Answer 4

2014

Question 5

describe Nigeria’s balance between different sectors of the economy

Answer 5

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

Question 6

what was Nigeria’s GDP in…

(a) 1999
(b) 2012

Answer 6

(a) $35bn

(b) $460bn

Question 7

how much of Nigeria’s GDP comes from oil?

Answer 7

14%

Question 8

describe how oil stimulated economic development in Nigeria

Answer 8

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

Question 9

describe Nigeria’s changing economic structure

Answer 9

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

Question 10

in 1999 what percentage of people were employed in industry?

Answer 10

Less than 10%

Question 11

describe how Dangote cement has stimulated economic development

Answer 11

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

Question 12

when was oil found in Nigeria?

Answer 12

the 1950s

Question 13

what percentage of export earnings does oil account for?

Answer 13

95%

Question 14

how has Nigeria’s importation of cement changed?

Answer 14

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

Question 15

how many cement plants does Dangote cement have in Nigeria?

Answer 15

3

Question 16

how many countries has Dangote cement expanded into?

Answer 16

13

Question 17

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

Answer 17

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

Question 18

how many jobs does Shell provide directly in Nigeria?

Answer 18

65,000

Question 19

how many jobs does shell create in related industries?

Answer 19

250,000

Question 20

what percentage of shell contracts go to Nigerian companies?

Answer 20

90%

Question 21

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

Answer 21

over $30bn

Question 22

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

Answer 22

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

Question 23

how much oil was released in the Bodo Oil spills?

Answer 23

11 million gallons of crude oil

Question 24

how much of oil spills are militant groups responsible for?

Answer 24

two thirds

Question 25

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

Answer 25

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)

Question 26

describe China's relationship with Nigeria

Answer 26

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.

Question 27

what percentage of Nigerian imports are from China?

Answer 27

20%

Question 28

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

Answer 28

over $10bn

Question 29

what did the China Railway Construction Corporation do in 2014?

Answer 29

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

Question 30

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

Answer 30

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

Question 31

describe aid to Nigeria

Answer 31

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.

Question 32

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.?

Answer 32

60 million

Question 33

how much debt did Nigeria have in 1990?

Answer 33

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

Question 34

when was Nigeria granted debt relief?

Answer 34

in 2005 (along with 39 other countries)

Question 35

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

Answer 35

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

Question 36

why is aid not used effectively in Nigeria?

Answer 36

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

Question 37

what are the environmental impacts of economic development in Nigeria?

Answer 37

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

Question 38

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

Answer 38

£55 million

Question 39

when were the Bodo oil spills?

Answer 39

2008/09

Question 40

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

Answer 40

80%

Question 41

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

Answer 41

3 hours

Question 42

give an example of a squatter settlement

Answer 42

Makoko

Question 43

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

Answer 43

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

Question 44

how much has life expectancy increased?

Answer 44

from 46 to 53 years

Question 45

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

Answer 45

64%

Question 46

how much have typical schooling years increased in Nigeria?

Answer 46

from 7 to 9

Question 47

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

Answer 47

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