An NEE: Nigeria

Nigeria: location and importance

Nigeria is in West Africa, on the Gulf of Guinea. It became independent from Britain in 1960. Its capital is Abuja; its largest city is Lagos.

Population: about 232.7 million people in 2024, according to the UN: the most in Africa, and the sixth most in the world.
Economy: one of Africa's largest economies, and a major oil exporter. Its film industry, Nollywood, is one of the world's biggest.
Politics: a leading member of the African Union and of ECOWAS, the Economic Community of West African States, whose headquarters are in Abuja.

Nigeria is an : its economy is growing, though many people are still poor.

Context

Environments: tropical rainforest and mangrove swamps in the south, around the Niger Delta; savanna grassland in the centre; dry semi-desert in the far north, on the edge of the Sahel.
Peoples: hundreds of ethnic groups and languages. Many people in the north are Muslim, and many in the south are Christian.
Politics: after independence, Nigeria had a civil war (1967 to 1970) and long periods of military rule. It has been a democracy since 1999.
Challenges: armed groups in the north-east and unrest in the Niger Delta have affected parts of the country.

A changing economy

Economies have three main sectors:

primary: taking raw materials from the land or sea (farming, fishing, oil);
secondary: manufacturing goods (factories, building);
tertiary: providing services (shops, banking, telecoms, film).

Nigeria's economy depended on farming, then on oil. Today, services are the largest sector. In 2019, by Nigeria's statistics office's latest measure, agriculture made up about 26% of GDP, industry about 21% and services about 53%.

Oil is still vital for trade: crude oil made up between about 65% and 81% of Nigeria's exports in each quarter of 2024.

Growing manufacturing, such as cement and food processing, creates jobs and goods to sell at home and abroad.

Key terms

A TNC in Nigeria: Shell

A (TNC) operates in many countries. Shell, a British oil company, produced oil in the Niger Delta for decades. In 2025, it sold its onshore Nigerian company to a group of mainly Nigerian firms.

Advantages:

jobs, both directly and in supply companies;
taxes and payments that fund the government;
investment in pipelines, roads and training.

Disadvantages:

oil spills: in 2008, two spills from Shell pipelines polluted creeks near Bodo. In 2014, Shell admitted liability and agreed a £55 million settlement with the community;
pollutes the air;
much of the profit went abroad.

Key terms

Exam practice

Plan your own answer first, then open the model answers to see what each level looks like.

9 marks · about 9 minutes

To what extent have TNCs brought more advantages than disadvantages to an LIC or NEE you have studied?

To what extent means: Weigh up how far something is true, with evidence on both sides, then give a clear judgement.

Link it

Use the facts from:

Nigeria (Nigeria, West Africa, Present day)

Level 1 (Basic)· 3/9 marks (band 1–3)

Shell brought jobs to Nigeria but also caused oil spills. I think the disadvantages are worse.

Why this level: Simple points with no detail, and a judgement that isn't explained. To reach Level 2: explain the advantages and disadvantages of a named TNC, with facts.

Level 2 (Clear)· 5/9 marks (band 4–6)

Shell brought Nigeria jobs, taxes that fund the government, and investment in pipelines, roads and training. However, it also caused harm: in 2008, two spills from Shell pipelines polluted creeks near Bodo, and in 2014 Shell agreed a £55 million settlement. Gas flaring also polluted the air.

Why this level: Clear advantages and disadvantages with accurate facts. But they aren't weighed, and there's no judgement. To reach Level 3: compare them, including who benefits and for how long, then conclude.

Level 3 (Detailed)· 8/9 marks (band 7–9)

Shell, a British TNC, brought Nigeria important advantages. It created jobs, paid taxes and royalties that fund the government, and invested in pipelines, roads and training. Oil has been central to Nigeria's economy: crude oil made up between about 65% and 81% of its exports in each quarter of 2024. However, the disadvantages have been serious. In 2008, two spills from Shell pipelines polluted creeks near Bodo, killing fish and damaging mangroves, and in 2014 Shell agreed a £55 million settlement. Gas flaring polluted the air, and a UN Environment Programme study in 2011 found that cleaning up Ogoniland could take 25 to 30 years. Much of the profit also went abroad, rather than staying in Nigeria. In 2025, Shell sold its onshore company to a group of mainly Nigerian firms. Overall, the economic advantages were real, but they were shared unevenly, while the environmental damage will last for decades, so the disadvantages outweigh them for the people of the Niger Delta.

Why this level: Detailed, accurate evidence on both sides, weighed with attention to who benefits and for how long, leading to a justified judgement. This is Level 3.

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