Nigeria Oil Economic Unrest Reid Carroll and Lizzy

Nigeria, Oil & Economic Unrest Reid Carroll, and Lizzy Galvin

Nigeria’s Geography Western Africa, bordering the Gulf of Guinea, between Benin and Cameroon. n Slightly more than twice the size of California. n It has 853 km of coast line. n Two major natural hazards are the periodic droughts, and the flooding. n

Map of Nigeria

Nigerian People Nigeria’s population is 137, 253, 133. n 0 -14 years: male 29, 985, 427; female 29, 637, 684 n 15 -64 years: male 37, 502, 756; female 36, 205, 442 n 65 years and over: male 1, 944, 260; female 1, 977, 564 n

Nigerian Culture Over 250 languages spoken, and over 250 ethnic groups. n The official language in Nigeria is English, but less than half of the people actually speak English. n The Most commonly used languages are Hausa, Yoruba, Igbo (Ibo), and Fulani. n

Nigerian Culture (cont. ) n n The common religions are Muslim 50%, Christian 40%, and indigenous (native) beliefs 10%. Out of the 250 ethnic groups, the most populous and politically influential: Hausa and Fulani , Yoruba , Igbo (Ibo) , Ijaw , Kanuri , Ibibio, and Tiv.

Nigeria’s Economy 2001 Nigeria’s economy revolves around oil. n Economic growth: 3% n Inflation: 15% n External Debt: $27 billion n Population Below Poverty Line: 66% n GDP (Gross Domestic Product) Of Oil Exports: 45% n

Nigerian Poverty n n Nigeria is one of the top twenty poorest countries in the world today. Poverty is still growing. In 2001 66% of people in Nigeria fall below the poverty line to one dollar a day. Poverty has risen greatly since 1985 when the poverty fell below the line 43%.

Problems in Nigeria The Nigerian people are too poor to afford expensive oil. n Oil Prices are rising. n Nationwide strikes were formed in hope that the government would lower the price of oil. n

Nigeria Oil Production n n Nigeria exports about 2. 5 million barrels of oil everyday. 15% of the produced oil is exported to the U. S. Nigeria is the largest oil producing country in Africa, and the sixth biggest producer in the world today. 1. 8 billion dollars is made by the government in exporting oil.

Strikes in Nigeria n n The Nigeria Labor Congress organized the nationwide strike. The nationwide strike effected most major businesses. Clashes between police, and protestors have resulted in people dying. Protestors cut through a major oil pipeline, disrupting supplies.

Effects of Higher Oil Prices on the Economy The companies that joined the strike lost money because the businesses were closed. n Higher oil prices means that more money is spent on heat and gasoline, that less money can be saved or spent on other things. n

Chart of rising oil prices The worldwide price of oil has risen from about $20 per barrel in 1996 to $55 in 2004.

U. S. Import of Oil Increases Importing oil into the U. S. , plays a very important role on the economy. We produce oil, but not as much as the U. S. needs. Importing oil, enables us to use all of the oil we need.

Increased Oil Prices Effect the Economies of Other Countries The higher price of oil this year, has hurt the U. S. economy by $100 billion. n The higher oil price stops the economy from growing. n If the price of oil keeps on rising, the more the country has to pay for the same amount. n

What is The Government Going to Do? n n The strike (organized by the NLC) was meant to only last for four days, but the government didn’t respond (lower prices), so the strike lasted up to, two weeks until the government lowered prices. The unions have tried to persuade the government into supplying the county with fuel, but the government has been relying on importing oil that costs about $2 billion a year. , but only 1. 8 billion dollars is made by exporting oil to other countries. This means that the country is losing money, by buying oil for more

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