Nigeria has abundant natural resources like petroleum, tin, and natural gas. It has a large and growing population of over 149 million people with high infant mortality and low life expectancy. Nigeria has experienced rapid economic growth but remains heavily dependent on oil and gas. It faces challenges like political instability, lack of infrastructure, and environmental damage from oil extraction. Improving education is key to diversifying the economy and reducing conflicts over resources. A proposed junior management academy in Lagos aims to provide higher education and partnerships with firms to cultivate human capital and support economic growth.

1. Nigeria

2. Natural Factors Land resources Petroleum, tin, columbite, iron ore, limestone, lead, zinc, natural gas Rich in oil (16-22 billion barrels of oil reserves)

3. Geography Located in Western Africa, bordering the Gulf of Guinea and surrounded by Benin, Cameroon, Niger and Chad 32nd largest country in the world

5. Human Factors I 149,229,090 inhabitants Population growth rate of 3.667% Age structure: 0-14 years: 49.6 % 15-64 years: 48% 65 years + : 2.3 % Dependency ratio of 1.08 (extremely high)

6. Human Factors II Health Life expectancy: 52.6 years Infant mortality rate: 166.66 deaths per 1000 live births (5th highest) People living with HIV/ Aids: 60,000 (in 2007) Degree of risk for infectious diseases is high (rabies or malaria)

7. Human Factors III Total expenditure on health care: 4.6% of GDP => Not sufficient Government provides some health care Private providers play a visible role in health care delivery => Poor people cannot afford

12. Economic Factors I GDP per capita: 2300 dollars (2008) GDP composition by sector: Agriculture: 18.1% Industry: 50.8% Services: 31.1% GDP real growth rate: 5.3% Unemployment rate: 4.9%

13. Economic Factors II Inflation rate: 11.6% Household income: Lowest 10%: 2% Highest 10%: 32.4% Labor force: 51.04 million Occupation by sector: Agriculture: 70% Industry: 10% Services: 20%

14. World Bank Economic Outlook

15. Physical Capital and Technology Infrastructure: 56 airports 3,505 km of railway 193,200 km of roadways Only 28,980 km paved Industry: 50.8% of GDP 3 hydroelectric power stations

16. Physical Capital and Technology Nigerian Institute of medical research National Space Research and Development Agency Federal Ministry of Science and Technology => Technology research plays a visible role

17. Political and Institutional Factors Legal system based on: English common law Islamic law (in 12 northern countries) Traditional law Chief of state: President Umaru Musa (2007) Elected by popular vote for 4 years Over 13 political parties Corruption (ranked 121/180) Militants in the Niger delta region

20. Externalities Environment has suffered serious damage from oil spills Environmental pollution from oil extraction threatens livelihood of neighboring communities

21. Obstacles to Development Political instability (internal conflicts and corruption) Lack of infrastructure Indebtedness (ext. debt: 9.132 billion) High inflation rate (low FDI) Overdependence on oil

23. Conflict/ Natural Resource Trap

24. Resources and Potential Oil and other mineral resources offer great opportunity for economic growth Potential in education Literacy rate: 68% School life expectancy: 8 years Spending only 0.9% of GDP English as official language -> good for conducting business

26. Formal Proposal Project: Junior Management Academy in Lagos Completion in 2011 Path to higher education/ partnership with firms Student scholarships based on National Entrance Examinations (200 students) Partner school of University of Pennsylvania

27. Formal Proposal Goals Improvement of Nigeria’s human capital Academy should be a model for other education initiatives Successful education of future managers Economic growth through better service sector and higher incomes in the future => Counteraction against rising violence and conflicts which harm Nigerian economy

28. Formal Proposal Costs Construction of academy: 10 million dollars (including advanced teaching technology, property prices are higher in Lagos) Salary for teachers (20 graduates of Wharton business school): 2000 dollars net per month Salary for staff (2 cooks, 2 caretakers, 2 cleaner): 500 dollars gross per month

29. Formal Proposal Repayment In 10 years, Academy and other educational institutions should contribute to 0.01% of GDP through higher incomes in service sector This amounts to 20.7 million dollars Donations from sponsoring companies, alumni and government

30. Formal Proposal Success in other countries Basic Education Quality Improvement Project in Panama Improvement of secondary education (10-12 grade) Education for the knowledge economy