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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 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 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, 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

          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 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.

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 south-facing 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).

 

Fig 1: Map of Lagos state showing the study area

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

          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 socio-economic 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 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

          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).

          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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