Case Study: TNCs in Nigeria
Geography: AQA GCSE, topic 5.1.21
Trans-National Corporations (TNCs) in Nigeria
Transnational corporations (TNCs) play a major role in Nigeria. TNCs are businesses which are found in several countries.
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.
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.
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.
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.
Test yourself on Case Study: TNCs in Nigeria
How many people are employed by Shell Oil in Nigeria?