Chapter 1.2 part 1

• Aardrijkskunde
• Middelbare school
• havo
• Leerjaar 3

Nigeria

The oil industry: a blessing or a curse?

What do you think.....

The oil-industry is ....

1. a bless
2. a curse

Nigeria is rich!

1956: discovery of oil in the Niger delta.

Multinationals extract large volumes of oil from underground wells.

The oil industry is very important for Nigeria.

Because.....

-14% of GNP

- oil revenue in 2013 – €80        billion

- 70% of government income.

 Essential for funding government investment in education and infrastructure.

Oil revenue in Nigeria determined by production, export and oil price.

Oil revenue can be high or low:

high: as a result of high output and exports

low: as a result of internal conflicts or a low foreign demand

The unpredictable oil trade

high: when the oil price is high

- a rising demand for oil on the global market

- a shortage of oil on the global market

low: when the oil price is low

- a shrinking demand for oil (e.g. during an economic crisis)

- there is a surplus of oil on the global market

Oil and poverty

Nigeria is poor.....

About 40% of Nigerians are poor, despite the oil industry.

* Very few jobs in the oil industry.

* Inefficient distribution of revenue by the government:

         - Very little money for rural areas --> low yields.

             From self-sufficiency to food imports.

         - Very low investment in industry --> neglect.

             High unemployment and many people work in the

             informal sector

* Money is lost through corruption.

* Oil industry pollutes agricultural and fishing areas.

What do you think.....

The oil-industry is ....

1. a bless
2. a curse

Go to the geo online and do assignment 1-2-5-6

Finished? Then look at the following movie.