§5.2 The oil industry: a blessing or a curse? Part 2

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§5.2 The oil industry: a blessing or a curse? Part 2

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Nigeria has a lot of oil. Most of the oil is in the ............

1. North
2. East
3. West
4. South

What is not a disadvantage of the oil industry in Nigeria

1. Causes pollution in Nigeria
2. Provides employment opportunities
3. Ensures corruption
4. Provides 30% of the GDP

Oil is ....

1. exhaustible
2. renewable
3. for Mr White
4. Oil dumb

Which sentence is incorrect? Despite oil, Nigeria is not rich because...

1. Money is not properly distributed to the population
2. The money goes mainly to foreign companies
3. The price of oil is low
4. There is corruption in Nigeria

Oil is made from

1. remains fossils
2. plant remains
3. dinosaur remains
4. Plankton,algae and bacteria

Oil and poverty

Nigeria earns billions from oil industry;

But nearly 91 million people (45%)

earn less than $1.60 per day.

Why is the population not benefiting from the oil industry?

Oil and poverty

• The oil industry employs very few people
• Profits goes to a small group of people, government and foreign oil companies
• Around 50 billion dollar a year disappears in Nigeria because of corruption
• The government doesn't invest the generated income from the oil
  

Poll in Nigeria: how many % of the population is corrupt?

The unpredictable oil trade

What correlation do you see? 

Correlation

• Nigeria's economy is so dependent on petroleum (exports) that a change in the world price leads directly to a change in GDP.
• This dependence is not desirable
  

Solution for this problem?

Diversification

• A solution can be diversification
• Diversification means that a country has different sources of income, which makes the economy less one-sided
• When the government invest money in agriculture, industry and services this can create more jobs in Nigeria and reduce the poverty!
  

Homework part 2

Read §5.2 again

Make assignments 5, 6, 7, 8 and 9

Finished? Make §5.3 assignments 1 and 2

.

The end

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