5.1.15

Case Study: Economic Development in Nigeria

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The Importance and Development of Nigeria

Nigeria was the 21st largest economy in the world in 2014. It has the largest population, agricultural output and GDP of all African countries. Nigeria has developed in the way it has for different reasons:

Illustrative background for Political context to Nigeria's developmentIllustrative background for Political context to Nigeria's development ?? "content

Political context to Nigeria's development

  • Nigeria was part of the British Empire until it became independent in 1960.
  • Nigeria suffered from conflict and unrest after independence but is now politically stable.
Illustrative background for Social context to Nigeria's developmentIllustrative background for Social context to Nigeria's development ?? "content

Social context to Nigeria's development

  • Nigeria was created when European nations divided up Africa during the Berlin conference. This means that there is a wide mix of faiths and ethnic groups.
    • This considerable diversity led to a civil war from 1967-1970.
Illustrative background for Cultural context to Nigeria's developmentIllustrative background for Cultural context to Nigeria's development ?? "content

Cultural context to Nigeria's development

  • Nigeria is well-known for its music, cinema and football team.
Illustrative background for Environmental context to Nigeria's developmentIllustrative background for Environmental context to Nigeria's development ?? "content

Environmental context to Nigeria's development

  • The north of Nigeria is part of the Sahel and is very dry.
  • Much of Nigeria is tropical grassland, but the region nearest to the coastline is forested and ideal for growing cocoa.

Nigeria's Changing Industrial Structure

The employment structure in Nigeria has stopped being dominated by agriculture as manufacturing industries have rapidly developed.

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Pre-2000 industrial structure

  • In 1999, almost 75% of Nigeria’s employment was in agriculture – the primary sector.
    • This has decreased as more machines are used and people move to new jobs.
Illustrative background for Changes to Nigeria's industrial structureIllustrative background for Changes to Nigeria's industrial structure ?? "content

Changes to Nigeria's industrial structure

  • In 2012, the employment structure of Nigeria was equally divided into primary, secondary and tertiary employment.
    • Secondary employment has been boosted by the growth of the oil and manufacturing industries.
      • Manufacturing now contributes 10% of Nigeria’s GDP.
    • Tertiary employment in Nigeria involves services such as finance and retail.

Trans-National Corporations (TNCs) in Nigeria

Transnational corporations (TNCs) play a major role in Nigeria. TNCs are businesses which are found in several countries.

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Benefits of TNCs

  • TNCs often invest in staff training, infrastructure and education.
  • TNCs can lead to a multiplier effect where other industrial sectors see growth as a result of TNCs moving into the country.
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Downsides of TNCs

  • But, TNCs are keen to pay workers as little as possible to keep their profits high and sometimes working conditions are poor.
  • Profits usually go back to the country where the TNC has its headquarters. This is known as leakage.
Illustrative background for Unilever in NigeriaIllustrative background for Unilever in Nigeria ?? "content

Unilever in Nigeria

  • Unilever is a TNC that makes soap and food.
  • Unilever employs around 1,500 people in Nigeria and has helped to improve healthcare and education.
Illustrative background for Shell Oil in NigeriaIllustrative background for Shell Oil in Nigeria ?? "content

Shell Oil in Nigeria

  • Shell Oil is a TNC that extracts oil in the Niger Delta.
  • Shell Oil employs 65,000 workers and pays taxes to the Nigerian government, but has caused environmental damage to the Niger Delta including oil spills and fires.

Jump to other topics

1The Challenge of Natural Hazards

1.1Natural Hazards

1.2Tectonic Hazards

1.3Weather Hazards

1.4Climate Change

2The Living World

3Physical Landscapes in the UK

3.1The UK Physical Landscape

3.2Coastal Landscapes in the UK

3.3River Landscapes in the UK

3.4Glacial Landscapes in the UK

4Urban Issues & Challenges

5The Changing Economic World

6The Challenge of Resource Management

6.1Resource Management

6.2Food

6.3Water

6.4Energy

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