: Where is Nigeria located and what is its importance?
Nigeria is located in West Africa, bordering Benin, Niger, Chad, and Cameroon.
It is a Newly-Emerging Economy and became the world’s 21st largest economy in 2014.
Regionally, it has Africa’s largest population and its highest GDP as of 2014
Q: What is the wider context (Political, Social, Cultural, Environmental) of Nigeria?
Nigeria gained independence from the UK in 1960 and has maintained a stable government since 1999.
It is a multi-ethnic country including the Yoruba, Hausa/Fulani, and Igbo groups.
Its ‘Nollywood’ film industry is the second largest in the world.
Environmentally, the south features high rainfall and forest while the north is semi-desert.
Q: How is Nigeria’s industrial structure changing and stimulating development?
Sector Balance: Employment in agriculture has fallen (from 70% to 40% in 2014) due to mechanization, while the service sector has grown in telecommunications and finance.
Manufacturing Stimulus: Manufacturing now accounts for 10% of Nigeria’s GDP. This stimulates development by providing regular paid work (secure income) and creating chemical by-products from oil processing used for soaps and plastics.
Q: What are the advantages of Shell as a TNC in Nigeria?
Shell provides direct employment for 65,000 Nigerian workers and 250,000 jobs in related industries. T
Local Economy: 91% of Shell’s contracts are given to Nigerian companies, and the firm makes major contributions to the country’s tax and export revenue
Q: What are the disadvantages of Shell as a TNC in Nigeria?
Environmental Damage: Bodo oil spills (2008/09) leaked 11 million gallons of crude oil over a 20km² area, devastating the livelihoods of thousands of farmers and fishermen
Pollution & Conflict: Gas flaring sends toxic fumes into the air, and oil theft/sabotage costs TNCs and the government billions of dollars annually
Q: How have Nigeria’s political and trading relationships changed?
Political Links: Since 1960, Nigeria has moved from a British colony to a leading member of the Commonwealth, the African Union, and ECOWAS (trading group).
Trading Partners: While the USA was the biggest customer for oil, the development of shale oil there led to a shift; now India and China are the main customers, with oil exports to these regions increasing by 40% recently.
: What are the impacts of international aid on Nigeria?
Nigeria receives 4% of all aid given to Africa, totaling nearly US$5,000 million in 2013
Health: The Aduwan Health Centre (Kaduna State) was built in 2010 to immunize children against polio and test for HIV.
Resilience: The NGO ‘Nets for Life’ provides education on malaria prevention and distributes anti-mosquito nets to households
Q: What are the environmental impacts of Nigeria’s economic development?
Industrial/Urban Pollution: Many of the 5,000 registered industrial plants dispose of chemical waste on land or in water channels, and traffic congestion in cities leads to high exhaust emissions.
Habitat Loss: 70–80% of Nigeria’s forests have been destroyed through logging and urban expansion, causing species like cheetahs and giraffes to disappear
Q: How has economic development affected the quality of life in Nigeria?
Improvements: Nigeria’s HDI has increased steadily since 2005 (0.46 to 0.50), and life expectancy rose from 46 to 52 years between 1990 and 2013.
Remaining Challenges: Despite oil wealth, the gap between rich and poor is widening, and 60% of the population still live on less than US$1 per day.