An NEE: Nigeria » Nigeria: Trade, Aid and Quality of Life

Changing political relationships

Since independence, Nigeria's relationships with the rest of the world have changed a lot.

• Joining world groups. Nigeria is a member of the United Nations and the Commonwealth, which gives it a voice on the world stage.
• Peacekeeping. Nigerian soldiers have served in peacekeeping missions in West African countries such as Liberia and Sierra Leone. This gives Nigeria influence in the region.
• Elected government. After many years of military rule, Nigeria has had elected governments since 1999. This makes it easier to work with other governments and to attract foreign investors.

Changing trading relationships

Trade means buying and selling goods between countries. Goods sold abroad are exports. Goods bought from abroad are imports.

Key terms:

• Export: a product sold to another country.
• Import: a product bought from another country.

Nigeria's trade has therefore moved away from one old partner, Britain, towards many partners across Asia, Europe and the Americas.

China also invests in Nigeria. Chinese companies have helped to build railways, including the Abuja to Kaduna line and the Lagos to Ibadan line. Better transport helps businesses move goods and people.

The problem is that Nigeria still depends on oil. When the world price of oil falls, the money coming into the country falls too, and the government has less to spend on services.

International aid

Aid is help given to a country, in money, goods or expertise. Remember from Strategies to Reduce the Development Gap that aid is one way of closing the gap. Here we look at the types and what they do for Nigeria.

Key terms:

• Bilateral aid: given by one government directly to another government.
• Multilateral aid: given by an international organisation, such as the World Bank, using money from many countries.
• Voluntary aid: given by charities (NGOs), using money donated by the public.
• Emergency (short-term) aid: quick help such as food, tents and medicine after a disaster or conflict.
• Development (long-term) aid: help to improve life over many years, such as building schools or clean water supplies.
• Tied aid: aid that comes with conditions, for example that the money must be spent on goods or services from the donor country.

Impacts of aid on Nigeria

Aid is only a small part of Nigeria's income compared with oil, so it helps with particular projects rather than changing the whole economy.

Environmental impacts of economic development

As Nigeria's economy has grown, the environment has paid a price.

• Oil spills. In the Niger Delta, spills from pipelines and wells pollute rivers, farmland and mangroves. Fish die and farmers lose their land and food.
• Gas flaring. Gas that comes up with the oil is often burned off. This releases carbon dioxide and other pollutants into the air and adds to climate change.
• Deforestation. Trees are cleared for farmland, timber and fuel wood for a growing population. Soil is then easily eroded and habitats are lost.
• Urban pollution. Growing cities such as Lagos have traffic fumes, rubbish and polluted water, especially where waste is not collected.
• Drying land in the north. Lake Chad, on the edge of Nigeria, has shrunk a great deal. Farming and fishing have suffered and the land is at risk of desertification.

Key terms:

• Gas flaring: burning off unwanted gas at an oil well.
• Oil spill: crude oil leaking into land or water.

Effects of development on quality of life

Quality of life means how good people's lives are, including income, health, education and surroundings. Development has changed it, but not equally for everyone.

Oil income has mostly benefited a minority of people. This is why average figures such as GNI per head can hide big differences in quality of life inside Nigeria.

Exam-style question

(a) Give one example of voluntary aid. [1 mark]

(b) Explain one way aid can help the people of Nigeria. [2 marks]

(c) Explain how economic development has affected quality of life in Nigeria. [4 marks]