nigeria case study internet geography

Nigeria and Transnational corporations

The role of transnational corporations (tncs) in relation to industrial development.

A Trans National Corporation (TNC) is a company that has operations (factories, offices, research and development, shops) in more than one country . Many TNCs are large and have well‐known brands. Often TNCs have their headquarters and areas of research, development and product innovation in the country they start in, and manufacturing and factories in other countries (often poorer ones to take advantage of cheaper labour and environmental costs).

Nigeria is attractive to many TNCs because of the large market on offer and lower labour costs. Below is a list of the 20 biggest companies in Nigeria, it shows the impact of foreign TNCs but also that Nigeria has its own home grown massive businesses.

Shell in Nigeria

Shell is a massive TNC that operates in many countries around the world.  Extracting the oil is a primary industry but Shell also refine the oil which is a secondary manufacturing industry and they also sell the finished products which is a tertiary service.  Shell's work in Nigeria produces more than 21% of the country's total petroleum production from more than eighty fields. Shell bring positives and negatives to the country.

Advantages and disadvantages of TNC(s) to the host country

There are many positives and negatives of Trans National Corporations for a country like Nigeria.  TNCs like Shell provide jobs in factories making supplies and in services where the products are available for sale, and they do try to clean up after they accidently damage the environment. TNCs often have charities to help people in the country they work in.  Shell has the Shell foundation to help sustainability and biodiversity and help local communities.  The main advantage is that TNCs can help countries develop by investing money ENCOURAGING DEVELOPMENT . Shell has spent $12 billion in LICs for example.  This also means that TNCs pay tax which can be used by the governments of countries to help their people.  Shell paid £20billion in corporation tax in 2013 for example. Finally, oil refineries like those in Nigeria use lots of local companies to help them run.  This creates a multiplier effect and  TNCs allow the import of new technologies into a country, improving it.

However, sometimes TNCs come in for criticism. Their activities have polluted the environment in the past.  Shell has had many incidents involving oil spills for example. TNCs have been accused of human rights abuse s in the past.  Shell have been accused of crimes against the Ogoni people in the Niger Delta (see case study box).  In addition, employees in LIC’s are working for long hours (e.g. 12+ hours) in poor conditions (in factories known as “Sweat Shops”). Also, employees in LIC’s might be paid much less than employees in HIC’s for doing higher intensity jobs. Some TNCs have even been known to use child labour in their factories. In addition, the jobs in the LIC’s are not secure. They could lose their jobs without warning if company decide to set up somewhere cheaper (as Michelin did in Nigeria). The profits from the production go straight to the headquarters in the HIC . They aren’t reinvested in the LIC. Even in HICs, big TNCs like Amazon and Starbucks have been accused of doing everything they can to limit the amount of tax they pay by playing the system.

CASE STUDY: HUMAN RIGHTS VS. OIL

The Niger Delta contains Ogoniland, home to a community that fought back against Shell.  Shell has extracted $30billion worth of crude oil from the land of the Ogoni people since the 1950s.  Oil revenue makes up 75% of the Nigerian economy and ½ of that comes from Shell.  This has had consequences for the Ogoni people, many of whom live without electricity or running water, who see none of the oil profits and have to live with the poisoning of land and water from pipelines, oil spills and gas fires.

Ken Saro-Wiwa (pictured), organised the locals into the Movement for the Survival of the Ogoni People (MOSOP) who used non-violent protest methods against the power of Shell.  The protest movement were attacked, killed and mutilated and some people blamed the government for this.  The military Government made their intentions clear and Ken Saro-Wiwa said on May 10 1994 – “This is it.  They (the Nigerian army) are going to arrest us all and execute us.  All for Shell” .  On May 22nd 1994 Ken Saro-Wiwa was arrested on a murder charge, he told the tribunal “I and my colleagues are not the only ones on trial.  Shell is here on trial….The company (Shell) has indeed ducked this particular trial but its day will surely come”.  Despite massive pressure from Germany, France and Australia, Saro-Wiwa was hanged with 8 other protestors in 1995.    John Major (the then UK prime minister) declared it as indefensible. 

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Transport Situation in the Global South: Insights from Nigeria, South Africa and India

• First Online: 14 August 2024

Cite this chapter

• Oluwayemi-Oniya Aderibigbe 4 ,
• Samson Olawale Fadare 5 &
• Trynos Gumbo 6  

Transportation plays a major role in sustainable development, impacting the economy and presenting various trends and challenges. This chapter focuses on the transport situation in the global south, specifically Nigeria, South Africa, and India to identify the impacts and highlight emerging trends and challenges. By referencing developed countries like Singapore and Germany, the study offers researchers and practitioners a comprehensive understanding of transportation challenges and the influence of infrastructure on sustainable development. The findings reveal that many cities in developing countries lack essential infrastructure needed for citizen well-being and to support transportation system growth, contrasting with the developed nations. The chapter also identifies congestion as a significant social issue and emphasizes the detrimental effects of poorly maintained transit infrastructure on residents’ quality of life. Additionally, challenges related to transport affordability, limited access to public transportation in communities, and weak intermodal integration affecting home-to-work connections are prevalent in most cities in the global south. These findings shed light on the obstacles hindering growth in the transport sector and provide insights into transport problems, traffic congestion, infrastructure planning, transport planning, sustainability, emerging technology, smart cities, intermodal transport, and Africa.

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Aderibigbe, OO., Fadare, S.O., Gumbo, T. (2024). Transport Situation in the Global South: Insights from Nigeria, South Africa and India. In: Emerging Technologies for Smart Cities. Springer, Cham. https://doi.org/10.1007/978-3-031-66943-9_3

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What is Nigeria’s wider context?

What is Nigeria’s wider context?  

Political  .

European colonial powers drew up the political map of Africa in 1883. The continent was exploited for natural resources and slavery for many years.  

Following its independence from the UK in 1960, Nigeria experienced political instability for several years due to different factions fighting for control. As a result, civil war ravaged the country between 1967 to 1970.  

In 1991 the capital moved from Lagos to the newly built city of Abuja. The country, regarded as stable since 1999, experienced free and fair elections in 2011 and 2015. The increased confidence in the country has led to considerable economic investment, particularly from China, the USA and South Africa.  

Social  

The population of Nigeria is multi-cultural and multi-faith. It is a land of over 500 languages and hundreds of ethnic groups, such as the Hausa, Yoruba and Igbo.

Although social diversity is a considerable strength of Nigeria, it has led to some regional conflicts. The fundamentalist group Boko Haram has hindered economic development through conflict.  

Cultural  

Nigeria has a rich and varied culture due to its social diversity. Its film, music and literary sectors are thriving. Nigeria has experienced success within Africa by winning the African Cup of Nations three times.  

Nigeria has the second-largest film industry in the world, ahead of the United States and behind India. Nigerian cinema is known as “Nollywood”.  

Filming a Nollywood movie

Environmental  

Nigeria spans several climatic regions. It experiences a tropical climate to the south, whereas, toward the north, it is much drier.  

Rainforest thrives in the equatorial climate in southern Nigeria. Tree crops in this area include cocoa, palm oil and rubber.  

Lekki conservation centre Lagos

To the north, savanna grassland replaces the rainforest. A range of field crops is typical here, including cotton and millet. Cattle also graze the savanna.  

Semi-desert exists  in the very north of Nigeria. The nomadic grazing of cattle is the primary type of agriculture in the region.

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