PROJECT CODE: 000271

THE SOCIO-ECONOMIC IMPACT OF GUINNESS BREWERY

(PLC) ON IKEJA RESIDENTS

BY

OKOGHO CHURCHILL

DEPARTMENT OF GEOGRAPHY AND REGIONAL PLANNING,

DELTA STATE UNIVERSITY, ABRAKA

JULY, 2016
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TABLE OF CONTENT
Cover page -

Title page -

ii

Certification

iii

Dedication -

iv

Acknowledgement

Table of content -

vi

Abstract

CHAPTER ONE: INTRODUCTION

1.1

Background to the Study -

1.2

Statement of Research Problem -

1.3

Aim and Objectives

1.4

Research Hypothesis

1.5

Method of Data Collection

1.6

Method of Data Analysis

1.7

Study Area -

1.7.1 Location and Size -

1.7.2 Relief and Drainage

PROJECT CODE: 000271

1.7.3 Climate and Vegetation -

1.7.4 Soil Characteristics

10

1.7.5 Population -

11

1.7.6 Socio-Economic Activities

11

13

2.1.1 The Concept of Environmental Impact Assessment (EIA) -

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2.2

16

CHAPTER TWO: CONCEPTUAL FRAMEWORK AND

LITERATURE REVIEW
2.1

Conceptual Framework -

Literature Review -

CHAPTER THREE: DATA PRESENTATION AND ANALYSIS

3.1 Data Presentation, Interpretation and Analysis -

21

3.1.1 Personal Information of Respondents -

21

3.1.2 Socio-Economic Impact of Guinness Brewery Plc on

the Ikeja Residents -

31

3.2 Testing of Research Hypothesis

48

3.3 Discussion of Results -

50

CHAPTER FOUR: SUMMARY OF FINDINGS, CONCLUSION

AND RECOMMENDATIONS
4.1

Summary of Findings

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4.2

Conclusion -

52

4.3

Recommendations -

53

References -

55

Appendix -

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ABSTRACT
This study was carried out to investigate the socio-economic impact of Guinness
Brewery Plc and Ikeja residence. Guinness Brewery Plc through their various
manufacturing activities has discharged effluents into the Ikeja River which has
affected the socio-economic live of the people especially those who depend on the
river for their source of livelihood. A total of 150 questionnaires were
administered randomly to respondents in the study area. The data obtained were
analyzed using the descriptive and inferential statistical tools. In addition, the ChiSquare (X2) method was used to test the hypothesis formulated for the study. The
findings indicate that the quality of housing occupied by the workers of Guinness
Brewery (Plc) is significantly superior to those occupied by workers of other
establishments. The findings reveals that Guinness Plc impacts both positively and
negatively on IKeja residence. It was recommended from the findings that the
government should through its conservation and management strategies preserve
the natural quality of the environment and that Guinness Brewery Plc and other
companies should redirect their waste pipe to other places to prevent water and
environmental pollution or recycle their used waste to avoid future environmental
hazards.

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CHAPTER ONE
INTRODUCTION
1.1

Background to the Study

The nature and character of cities are determined by adequacy of planning

and management approach used for the city governance. Global Economy also has
influence in shaping the physical structure of cities. This is an area of focus of this
research since the establishment of various industries in cities especially Ikeja, has
boost the economy of the area and change the urban structure of the settlement
around the industrial layout. Such effects are different from country to country;
Nigeria cities spatial structures are responsive to change in global economy
(Oduwaye and Enisan, 2015).
Globally, only 13percent of the world's population lived in urban areas, and
over 60percent of the world's population will be urbanized by the end of the year
2016 (United Nations, 2016). Over the last forty years, the greater part of global
urban growth has been in developing countries. In developed countries,
stabilization at high levels of urbanization and low rates of urban growth has
generally been achieved (Burgess, Carmona and Kolstee, 2015). Despite the
variations between different world regions, the rate of urbanization in developing
countries continue to increase. According to the World Bank, between 1950 and
1990, the urban population of developing countries increase from 300million to
1.3bilion. In the 1990s, between 12 and 15million households were added to cities
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in developing countries annually (Oduwaye and Enisan, 2015).

In the eighties (1980s), the change in the global economy obliged many
countries to implement adjustment programmes to strengthen their international
positions, and a new consensus arose on the relationship between national
economic growth for meeting urban needs and the relationship between national
economic development and urban development. Macroeconomic policy imperative
meant that urban policies evolved in new and often unexpected direction's. The
role of the urban professional also changed significantly with the shift from project
to programme lending. Following the second habitat conference in 1996, public
and professional interest has become increasingly focused on evaluation of policies
that will add value on the improvement of the global economy of regions and
sustainability of the city spatial structure. The privatization of the Nigeria industry
has encouraged Guinness Brewery (PLC) to establish its company in Lagos.
Guinness Nigeria Plc, a subsidiary of Diageo Plc of the United Kingdom,
was incorporated in 1962 with the building of a brewery in Ikeja, the heart of
Lagos. The brewery was the first Guinness operation outside Ireland and Great
Britain. Other breweries have been opened over time; Benin City in 1974 and
Ogba brewery in 1982.
1.2

Statement of Research Problem

Nigerian urban environments are different in the way they develop which

could be spontaneous or planned (Babalola, 2009). The difference between

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traditional unplanned and contemporary modern cities brought both some

advantages and disadvantages which affect the quality of urban life. While the
growth of unplanned settlements is from the micro to macro scale, this process is
inverted in planned settlements and this has led to lack of hierarchical organization
among different levels and also loss of connections between the levels (Oduwaye
and Enisan, 2015).
However, with the declining standard of living due to global economic
recession that characterized the Nigeria urban environment, there is need for
deliberate action to improve the quality of life in urban area. The problem is caused
by many factors which include socio-economic situation and political decisions.
On the other hand, urban spatial structure and human life affect each other. The
method that will be required in evaluating this need should be comprehensive
cutting across different scales, as well as the relationship between these scales and
between human population and places (Oduwaye and Enisan 2015).
Due to the global economic recession, there is an increase in rural-urban
migration in order for people to meet their daily needs. This creates more pressure
on major urban centres, therefore affecting their economic status and generates
more economic problems such as transportation problem. This trend, however,
produce new forms of spatial and class polarization, which impose new social costs
that exceed the fiscal capacity of city governments. This has prompted a new
challenge to the governability of cities. Cities are seen as a diverse entity. The
paradox is that world cities will prosper as important nodes in the global economy,
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but the structure of their prosperity generates conflicts that they can neither redress
nor manage (Friedmann, 2013).
Nigerian urban settlements are chaotic due to their numerous economic
activities. They can be defined as complex structures, and such complexity can be
quantified through the spatial patterns which show the irregularity of their
configuration. This study, therefore, seeks to investigate the socio-economic
impact of Guinness Brewery (Plc) on the Ikeja residents, Lagos-Nigeria.
1.3

Aim and Objectives

The aim of this research work is to examine the socio-economic impact of

the Guinness Brewery (Plc) on the Ikeja residents, Lagos, Nigeria.

Specifically, the objectives are as follows: to;
1.

Identify the various socio-economic activities in the study area,

2.

Ascertain the extent to which Guinness Brewery (Plc) has impacted on Ikeja

residents.
3.

Examine Corporate Social Responsibility of Guinness Brewery (Plc) in Ikaja

4.

Determine the impact of Guinness Brewery (Plc) on the quality of Ikeja

environment.

5.

Recommend/suggest possible solutions to address negative impact

associated with the operation of Guinness Brewery (Plc) in Ikeja.

1.4

Research Hypothesis
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The following research hypothesis was tested in this study;

Ho:

The quality of housing occupied by the workers of Guinness Brewery (Plc)

is not significantly different from those occupied by workers of other
establishments.

1.5

Method of Data Collection

The primary and secondary data sources were used in this research. The

primary data was collected through the use of questionnaire, personal observation
and oral interview. The secondary data was collected through textbooks, libraries,
publish journals and internet sources.
1.6

Method of Data Analysis

The data collected in the research work were analyzed through the use
of percentages, tables, graphs, bar charts and histogram which comprise of
the descriptive statistical method while the use of Chi-Square (x2) which
comprise of the inferential statistical technique, was used to test the
hypothesis formulated for this study. The chi-square statistical technique was
used to analyze the research hypothesis. The Chi-Square method was adopted in

this research work to test if truly there exist a significant relationship between
the qualities of housing occupied by the workers of Guinness Brewery (Plc)
is not significantly different from the occupied by workers of other
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PROJECT CODE: 000271

establishments. The Chi-Square method is a set of procedures for testing the

significant relationship among two dependent and independent means. This
procedure determines the extent to which there are significant relationships
between the means of two samples with a single level of significance. The
Chi-Square formula method is;

X2

(of - ef)2
ef

Where;
X2

Chi-Square

Summation of observed and expected

Frequency

of

Observed frequently

ef

Expected frequency
Degree of freedom =

N-1

The expected frequency is derived by multiplying the column total by

the row total and dividing it by the grand total.

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i.e, Expected frequency =

Column total x Row total

Grand total

1.7

STUDY AREA

1.7.1 Location and Size

Ikeja is located in the western part of Nigeria. It is the heart of Lagos, one of
the most populous cities and largest in Africa and Nigeria in particular. Ikeja
consists of seventy-eight (78) communities which have merged to form a large
settlement called Ikeja.
Ikeja is located approximately on latitude 300301N and longitude 700301E.
(See fig 1) It lies in the upland area of Lagos State (see fig 1). It is at the southfacing scarp slope; which is a part of the coastal plain. The total land area
representing 1.57% of Lagos state total landmass (323,079 hectares) (Lagos State
Government, 2005).

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Study Area

Fig 1: Map of Lagos state showing the study area

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1.7.2 Relief and Drainage

The relief of Ikeja falls under the lowland type of landscape and is grouped
under the interior coastal lowland of Western Nigeria. This area lies west of the
western region of Nigeria; its boundaries are marked in the north by the edge of the
basement complex rock of the western highlands and in the south by the quaternary
deposits of the coastal margin (Oduwaye and Enisan, 2015).
The rocks are secondary and tertiary sedimentary which dig gently south
ward. Ikeja is under the Ogun lowlands and is characterized by heavy rainfall, high
temperature and the resultant rainforest with all trees and luxuriant plants. The area
has palm trees and little rubber trees and the vegetation here is a typical rainforest
with swamp in most areas. Ikeja could be described as having a flat terrain; the
area is about 100-350 meters above sea level and are usually reliable to flood
during heavy rainfall especially during the rainy season (Oduwaye and Enisan,
2015).
The whole of Ikeja area is mainly drained by the Lagos Lagoon and the
Atlantic Ocean. Lagos is an Island surrounded by water, despite this, the area still
experience of flood till date.
1.7.3 Climate and Vegetation
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Ikeja falls under the equatorial region that experiences rainfall throughout
the year. The rainfall is well distributed, and there is no month without rain and
there is a distinct dry season. Based on the data obtained from NIMET, Lagos, the
annual average rainfall is throughout the year. During the rainy season, rainfall
intensity and magnitude recorded falls between March to November with a short
break in the month of August, while dry to season last from mid-November to
February. The implication of this heavy rainfall is that socio-economic activities
will be disrupted in the area.
The temperatures of the study area, obtained from NIMET office, Lagos
disclose that there is a uniform temperature throughout the year. The mean
monthly temperature is around 27.050c with little variation. Thus the annual range
of temperature is 5.300c, consequently the implication of this temperature is that the
process of evapo-transpiration is greatly accelerated resulting to high rainfall
which can cause flooding of the environment thereby disrupting the socioeconomic activities of the Ikeja residents (Oduwaye and Enisan, 2015).
The vegetation of the area is mainly dominated by secondary regrowth. The
major vegetation in this area are the evergreen forest, deciduous forest and the
riparian vegetation which grow around the riverine areas, mahogany etc which
form raw material sources of timber in industry.
1.7.4 Soil Characteristics
Ikeja is located in the zone of alluvia soil, which is muddy grey in colour
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and usually water logged or poorly drained. The result of this soil type is that, it
has a low rate of infiltration, thus during heavy precipitation, where rainfall
intensity exceeds infiltration capacity water begin to accumulate on the soil surface
and general high storm runoff which result into flooding of streets especially the
area where Guinness Brewery is located thereby hampering the socio-economic
activities of the Ikeja residents.
Furthermore, due to the poorly drained soil, it often takes quite sometime
before the socio-economic activities of the Ikeja residents is stabilized due to
excessive flood in the area as a result of discharge of the Guinness Brewery (Plc)
affluent into rivers or block drainages (Oduwaye and Enisan, 2015).
1.7.5 Population
Ikeja is traditionally inhabited by the Aworis. However, because of the long
historical goodwill and benefit derived up to the present day, Ikeja has attracted a
lot of people from different ethnic nationalities working and living within its
territorial boundary. According to 2006 National Population Commission Census,
the population of Ikeja is put at 313, 196. The population of Ikeja was estimated to
be 861, 300 as at 2105. (Akinkuotu, Enioha, 2015; Lagos State Information
2015).The de-facto population of Ikeja was supported by relevant data including
existing housing stocks, school enrolments, vehicles and motor bicycle registration
and a host of other facts that cannot be disputed.
1.7.6 Socio-Economic Activities
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Since Ikeja became the capital city of Lagos state in 1976 after the creation
of 19 states in the country, there has been tremendous development of Ikeja being
the industrial and commercial hub of the state. Today, Ikeja has been classified as
one of the major cities of the world, particularly in the Nigeria news daily. This
might be attributed to the fact that the new Lagos mega city will have its root from
the area, because is the administrative capital of one of the most populous city in
the world, which is Lagos state. It has also attracted development in terms of
upgrading and beautification. Ikeja is located very close to the Atlantic Ocean, so it
uses water means of transportation as a mode of transport through cargo shipping
which also boost the socio-economic activities of the Ikeja residents (Oduwaye and
Enisan, 2015).
Ikeja can be classified as a high-class area. The heavy industrial
establishment at the L.G.A. makes it one of the most important areas for
manufacturing activities in the entire federation. It also forms the hub for
emergence of the proposed megacity in Lagos. With the classification of the city as
model city and the development of model city plan for Ikeja, it will soon find its
place among major or economic cities of the world. Along Oregun, Oba Akran,
Agidingbi and Opebi are heavy industrial and commercial activities. Some of the
establishments include 7-up and Coca-cola at Oregun, Eleganza at Oregun,
Guinness Brewery (Plc), Michellin, vita foam, Tower Aluminum and Tower
building products, Nigerite, Berger Paint, Dunlop at Oba Akran (Oduwaye and
Enisan, 2015).
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The early setters generally engaged themselves in farming, buying and

selling of goods like clothes, agricultural produce, craftwork and others. These
activities got more sophisticated with time, thereby leading to extensive business
activities which have now made up the bulk of the economic life of the people. The
economy in the project area can be broadly categorized into formal and informal
sectors. The area comprise of both residential and commercial estate (Oduwaye
and Enisan, 2015).

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