Post Socio-Economic Impact Assessment Of Cement Production Industry In Rumuolumeni, Obio-Apor LGA

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Post Socio-Economic Impact Assessment Of Cement Production Industry In Rumuolumeni, Obio-Apor LGA


Cement factories in Nigeria need development and expansion as a result of high prices in cement product as well the benefits from the factories to the host communities. The study assessed the impact of Rumuolumeni cement factory on the socio-economic development of Rumuolumeni, Rivers State, Nigeria. Data was collected through administration of questionnaire among 361 households that were systematically sampled. Also, three sections of Focus Group Discussion (FGDs) were held with groups consisting of male, female and youth in the study area. The data was analyzed using both descriptive and Principal Component Analysis techniques. The result from the analysis indicated that only 7% earn above N80,000 per month while 25.2% earn below N20,000 monthly. It was also perceived that the establishment of the factory has generally improved the income of the residents because most residents have diversified their income base from agriculture to other more profitable businesses hence, more than 70% earn above than the N18,000 minimum wage monthly. On the basis of the findings, the study recommended that Rumuolumeni cement factory should execute projects such as building schools, construction of roads, provide health facilities, potable water and ultra modern market in collaboration with community stake47holders and government. The company should also initiate a well monitored credit facility programme to the indigenes of Rumuolumeni who are not working in the company in form of soft loans. This will enable them to go into private businesses which will in turn improve their live.

Chapter One


1.1 Background to the Study

Mineral exploration has supported the social and economic development of many developed countries (Akande and Idris, 2005). For example, the uranium mining in Canada and iron ore extraction in Germany have helped the two countries to develop infrastructurally as well as quality jobs creation invariably improving the countries standard of living. More so, the impact of industrialization on socio- economic development cannot be overemphasized (Aribigbola, Fatusin and Fagbohunka, 2012). In developing countries, it will continue to produce technological development and employment. According to Imasiku (2008), large scale mineral exploitation has contributed to over 90% of all foreign exchange earnings, 60% of Gross National Domestic Product (GNDP), 50% of total government revenue and 30% of total employment in some southern African countries. Similarly, small scale mineral exploitation provides a source of livelihood in rural and semi-urban Nigeria in particular and Africa in general.
Exploitation of mineral resources has assumed prime importance in several developing countries including Nigeria. Nigeria is endowed with abundant mineral resources which have contributed immensely to the national wealth with associated socio-economic benefits. Mineral resources are important sources of wealth for nation but before they are harnessed, they have to pass through the stages of exploration, mining and processing (Ajakaiye, 1985; Adekoya, 2003).

The intention behind the encouragement of industrialization according to Ofori-Cudjo (2009), Endashaw (2009) and Boakye (2010), lies in the development of a diversified economy that could propel the achievement of stable and sustainable societies. Since the agricultural sector is the main economic activity, sub-Saharan Africa countries cannot provide enough employment and income to the growing population.

Few years after Nigeria‟s independence, the major economic policy emanating from the new government was that of import substitution (Oyebanji, 1983). Consequently, several large scale industries were built by various levels of government and individuals that were desirous of quick industrialization. One of such is Ewekoro Cement Plant by Ogun State government, Sokoto Cement by the Sokoto State Government and that of Rumuolumeni cement plant in Rivers state. One of the often touted solutions to the problem impacting development in the third world countries is the emphasis on industrial enterprises (Aribigbola, Fatusi,andFagbohunka 2012).

Nigeria and other less developed countries are said to be economically backward because their economic pattern is based on supplying raw materials to industrialized countries and importing manufactured products in return. An attempt to reverse the trend has led to formulation and implementation of many policies on industrialization (Nove, 2005). For instance, the Nigerian government at a time had created agencies for the purpose of industrial development (Teriba, 1977). For obvious socio-economic factors, industries are usually established in urban centers even though raw materials are sourced from rural areas. However, the low level of socioeconomic transformation in many rural areas, has led development experts to perceive rural industrialization as a way out. Repeated calls have been made in support of rural industries, especially, those using bulky materials found in rural environment. Examples of these, include, iron smelting industries, cement factories, vegetables and fruit canning industries and so on. However, in spite of the natural resources available in the rural and urban areas of the country, the nation can only attain her development plan if she efficiently manage and direct the use of these resources well. The full potential of the resources have to be properly exploited.

With reference to cement factories, the federal government had in the early 1950s explored the possibility of establishing a cement factory in Nkalagu. This followed the discovery of large quantity of limestone deposits in the area. But this plan was not completed, nor was the Nigerian Cement Company incorporated until 1954 (Ugoh, 1977). After this period, more cement factories were established. They include West Africa Portland Cement Company at Ewekoro, Cement Company of Northern Nigeria in Sokoto, Bendel Cement Company Plc at ukpella, United Cement
Company Plc, Calabar, Ashaka Cement Company Plc, Benue Cement Company Plc, Gboko and Dangote Group Cement Factory Rumuolumeni. The establishment of Cement industry in the above mentioned communities is expected to have heavily impacted on the people, both physically and socio-economically. These impacts can be both positive and negative. Cement industries all over the world create dusts thereby giving room to lungs related diseases. On the other hand, it will create jobs, develop infrastructure thereby improving on the livelihood of the people of the community. The main challenge presently trailing the Rumuolumeni community is the impact of the factory on the overall wellbeing of the inhabitants and that is exactly what this study is poised to find out.

The contribution of industry to local and national economy in all facets is not in doubt as it is one of the key drivers of economic growth and development. The impact of industrial activities is felt in a variety of ways. The presence of industries in any community most especially large scale industries such as textile, automobile, cement confer external benefits in the area of employment generation, infrastructure provision and boost in the residents‟ social-economic status, population upsurge, expansion of local market, increased demand for accommodation, vibrant real property development and consequently increase in property value. In terms of land use, while these industries may produce goods and services that are beneficial to a segment of the population, the property values of others may diminish (ling and Archer, 2005). This leads us to the principle of Corporate Social Responsibility (CSR) which is also referred to as corporate conscience, corporate citizenship or corporate social opportunity. CSR is described as an attempt at instilling discipline and the integration of self regulation into business principles and ethics of MultiNational Corporations (MNCs). It functions basically as a build –in self regulating mechanism whereby business organizations monitor and ensure active compliance with the spirit of the law, ethical standard and international norms (Ojo and Akande, 2013).

1.2 Statement of the Research Problem

The production of cement is known to have multiple negative impacts on the surrounding environments and human health, in both developed and developing countries (Harley, 2007). Akandeand Idris (2005) revealed that cement manufacturing also has a myriad of socio-economic impacts on the surrounding communities. Such impacts include land use dispute between the host community and the manufacturing company, health problems, increase in crime and infrastructural development. Studies by Hilson (2002) and Samuel (2002) further observed some of the effects as pollution generation, land degradation, destruction of wildlife and crops, disruption of traditional values and even relocation of the local people. These disrupted family ties and community life and sometimes caused economic inequalities as evidenced in Bangladesh where the villagers were displaced from their agricultural land which was their primary source of livelihood (Hilson, 2002).

Afeni, et al (2008) assessed the socio-economic impact of quarrying and processing of limestone in Rumuolumeni, Rivers State. In order to achieve their objectives, questionnaires were administered to get information from respondents and both descriptive and inferential such as chi Square were used to analyzed the data. They indicated that generally, lifestyles of people around cement manufacturing plants was poor and characterized by poor education and subsequently, high percentage of illiteracy. This clearly shows that establishment of lucrative cement manufacturing ventures in rural communities does not guarantee improvement in their living conditions. However, they did their research when the cement factory was still at its infant stage. As at the year 2008, Rumuolumeni cement factory has the production capacity of about five million metric tones of cement per annum but by 2014, the production capacity has increased to about 13.25 million metric tones per annum., Therefore, between these periods, a lot of developments must have taken place both socially and economically which their work did not capture or indicate and this makes this work an important one. While their work was based on how the quarrying and processing of limestone has impacted on the people. The researcher will conduct his research holistically on how the factory at large has impacted on the community both socially and economically.

Aigbedion and Iyayi (2007), also researched on the environmental effects of mineral exploitation in Nigeria and came out with a conclusion that mineral exploitation causes different types of environmental damages which includes ecological disturbances, destruction of natural flora and fauna, pollution of air, land and water, instability of soil and rock masses, landscape degeneration and radiation hazards. They went further to state that the environmental damages have in turn resulted in waste of arable land as well as economic crops and trees. While their work was based on mining generally, this study will look into an aspect of mining which is Cement production and how if impact on the people of the study area.

Mojiminiyi, Merenu, Njoku and Ibrahim (2008), examined the effect of cement dust exposure on haematological and liver function among cement factory workers in Sokoto. Experiments were conducted on 23 staff and 46 unexposed persons who served as the control. The results pointed out that occupational exposure to cement dust may perturb haemopoietic function while preserving liver. This study will involve both the cement factory workers who are resides in Rumuolumeni as well as other residents.

1.3 Purpose of the Study

The purpose of the study is post socio-economic impact assessment of cement production industry in Rumuolumeni, Obio-Apor LGA.

1.4 Aim and Objectives of the Study

The specific objectives are to:.

  1. Examines the factors responsible for the establishment of the cement factory.
  2. Analyze the social impact of Rumuolumeni Cement Factory to the people of Rumuolumeni.
  3. Examine the economic impact of Rumuolumeni Cement Factory to the people of Rumuolumeni.
  4. Assess the impact of Rumuolumeni of Rumuolumeni cement factory on the infrastructural development of Rumuolumeni community.

1.5 Research Questions

  1. What is the factors responsible for the establishment of the cement factory.
  2. What is the social impact of Cement Factory to the people of Rumuolumeni.
  3. What is the economic impact of Cement Factory to the people of Rumuolumeni.
  4. What is the impact of Rumuolumeni of cement factory on the infrastructural development of Rumuolumeni community.

1.6 Scope and Limitation

This study will focus on characteristics of cement industry in Obio Akpor Rivers State. It will also determine the factors responsible for socio economic impact on the people. It is further limited to the researchers reach of respondents.

1.7 Organization of the Study

The study is organized into six chapters.

  • Chapter one covers; background to the study, statement of the problem, general objective of the study, specific objectives of the study, research hypotheses, significance of the study, limitation of the study, delimitations of the study, operational definition of terms and organization of the study.
  • Chapter two covers review of related literature.
  • Chapter Three covers research methodology which includes: introduction, research design, target population, sampling techniques and sample size, data collection instruments, validity and reliability of research instruments, data collecting procedures, data analysis techniques and ethical considerations.
  • Chapter four covers research results of the study.
  • Chapter five covers discussions and interpretations of research findings.

1.8 Justification for the Study

Although various scholars and researchers have dealt with the impact of industrialization in developing countries in various aspects, this study shall however take another dimension in the assessment of industrialization. It highlighted how industrial activities have encouraged development in rural areas.

A cement factory is an establishment that exploits human and material resources in an area. This is believed to usually result in increase in population, urbanization and rapid economic development.

The presence of Rumuolumeni Cement Factory in Rumuolumeni and the role it plays in the industrial development of Nigeria made it appropriate to study the organization. This will deepen our knowledge and provide ideas which will help in sustaining industrial activities towards making Nigeria an industrialized society.

This work shall be of benefit to researchers, economists, geographers, policy makers, industrialists, planners and inhabitants of the study area in terms of planning and policy making.

Chapter Five

Conclusion and Recommendation

5.1 Conclusion

Industrialization is a critical key to economic growth that calls for improvement in systems, technologies and processes that utilizes natural resources more effectively. Consequently, a high premium is placed on the development of the industrial sector of developed economies. Mineral exploration has supported the social and economic development of many developed countries For example, the uranium mining in Canada and iron ore extraction in Germany has helped the two countries to develop infrastructurally as well as quality jobs creation invariably improving the countries standard of living.

Rumuolumeni community was a hamlet before the coming of the cement factory but its establishment has brought with it different people from all over the country to settle there. The settlement of these migrants has also increased the population of the community. Esther Boresup once said that the population increase in the world is rather an asset than a curse if properly utilized, As a result of this, different businesses have sprang out of the area thereby creating jobs for both migrants and indigene. The residents also made their living from their engagement in different profitable activities such as loading of cement trucks, brick laying, farming, building etc in both the factory and outside the factory. The population influx has also become a source of market for farmers who used to transport their agricultural produce elsewhere for sale. Prices of properties, accommodation, land, agricultural goods etc have increased. All these have improved the income of the people of Rumuolumeni thereby improving their standard of living. However, the population increase has also lead to increase in social vices such as robbery, theft, prostitution, alcoholism, drugs addiction into the community.

Rumuolumeni cement factory is a giant cement making industry that is expected to impact on its host community both socially and economically. However, if its activities are not properly checked, it will completely shy away from its corporate social responsibilities which is an obligation of the company to it host community. It is quite worrisome that a company of this magnitude cannot provide most of the basic infrastructural and social needs as expected to serve as part of its compensation for its host community. Rumuolumeni cement factory is a company that is needed to be check mated by the appropriate authority because of its neglect of Rumuolumeni community. In terms of infrastructure, the factory has done very badly. It was discovered that since its establishment, it has only succeeded in making huge profit for itself apart from building a block of two classrooms, facilitating the electrification and a borehole which is no longer functioning for the community.

In conclusion, if the factory is made to think of its host community simultaneously with its profit making culture by government and other regulatory agencies, Rumuolumeni will be developed infrastucturally as well as socio-economically within a short period of time.

5.2 Recommendations

It is quite obvious that Rumuolumeni cement Factory has impacted on the socio-economic conditions of the community and its people either directly or indirectly. These impacts are either positive or negative to the Rumuolumeni community and its residents. In order to solve the socio-economic problems of the Rumuolumeni residents, the following recommendations should be considered.

  1. The Rumuolumeni cement company should give an equal opportunity to both the qualified and semi-qualified indigenes and the non-indigenes in terms of the available employment. This will give every resident of Rumuolumeni community the opportunity to compete for a job in the factory without fear.
  2. The Rumuolumeni cement factory should help in improving the educational status of it host community by awarding scholarships to a certain number excelling indigenous students annually. This scholarship should spin from secondary to tertiary institutions without delay of payment of bursaries and allowances. Once these students graduate, automatic employments should be given to them and it will help to close the gap between the indigenes and the migrant workers. This will give them an ample opportunity to hold managerial and other sensitive positions in the company just like others. However, it has been observed that the company has started awarding scholarships skeletally. The company should make it a yearly affair as part of its corporate social responsibility and the Rumuolumeni community will have a sense of belonging.
  3. The Rumuolumeni Cement Factory should undertake community development projects annually with more priority given to developmental projects that will have direct socio-economic impact on the host community and its residents for example, schools, roads, hospitals, portable drinking water, market etc. these projects should be decided by the community stake holders (community leaders and elders) and executed by the company.
  4. The company should initiate a well monitored credit facility programme to the indigenes of Rumuolumeni. The credit facility should be in form of soft loans and incentives payable within a stipulated long period of time. This programme will help the qualified persons to go into profitable businesses instead of waiting for factory jobs and will help in diverting their attention away from the limited job opportunities. The socio-economic status of the Rumuolumeni residents will be busted if the programme is well articulated.
  5. The company should establish an income generating venture such as agricultural farm, a shopping mall, cement selling shops etc and engage some of the indigenes. It is glaring that everybody cannot be gainfully employed in the cement factory. Therefore, if some of the idle youths are employed, it will improve their economic status.
  6. As a result of the establishment of the factory in Rumuolumeni community, there has been an influx of migrant from far and near within and outside the country. This has in turn brought different kinds of people from different background and culture into the community thereby resulting to the emergence of social vices such as robbery, theft, alcoholism, drug addiction etc into the area. To put a stop or reduce these type of activities, the company and the Rumuolumeni community should set up a committee that will be in-charge of the community policing. This committee should involve the youth as well as the Nigerian police to curb the menace.
  7. In terms of infrastructural development, the company in collaboration with the state government should help to tare, grade or sand fill the various access and street roads within and into the community. In achieving this, the company can donate bags of cement, the government donate machines while the community provide free labour to the construct the street roads, drainages and water channels. In solving the water problems in the community, electrically pumped boreholes should be sunk in different strategic locations in the community by the Obio-Apor Local Government assisted by various age groups as well as wealthy people in Rumuolumeni. The epileptic power supply issue by the Power Holding Company of Nigeria can be put to an end if only the company is involved. Therefore, the company should provide the community with a power generating plant while the wealthy individuals take the responsibility of supplying diesel as well as maintenance.
  8. Rumuolumeni community as a whole does not have a single social facility like recreational centre, sport facility, social center etc. for the Rumuolumeni residents. In solving this problem, the company should construct a standard sport center, a standard football field, town hall, a relaxation/ social centre etc for the community.
  9. Rumuolumeni community is a young and growing town. People are migrating into it on a daily basis. Hence, there is the need for the Rumuolumeni master plan. This will help to shapen and organize the town infrastructurally and physically. If this is not done and implemented, in the nearest future, Rumuolumeni will be a filthy and shanty town. The Rivers state should as a matter of urgency draw out a master plan and implement it now.

5.3 Suggestions for Further Research

The above discussion provides some clues about profitable ways to assess impact of Rumuolumeni on the socio economic development of Rumuolumeni, Rivers State. Without pretending that the following is exhaustive in scope, these represent useful areas to consider for future research.

  1. It is believed that cement factories all over the world are known for dust emission and Rumuolumeni cement factory cannot be an exception. Therefore, further work should be carried out to explore the effect of dust emission on the health of those working in the factory as well as the residents of Rumuolumeni community using a control experiment from a neighboring community.
  2. Giant industries especially in Africa normally have unending fracas with their host communities especially when they fail to give back to their host community for example, the oil companies in southern Nigeria and their host communities. A further research should be carried out on the relationship between the Rumuolumeni community and the Rumuolumeni cement factory.
  3. During the dry season, the Rumuolumeni community is always covered with dust and as a result, farming activities is always put to a halt and nobody is saying anything on how to rescue the situation. Therefore, further work should be carried out on the impact of dust on plants and its resultant effect on wildlife.
  4. Most of the Multi-National and locally owned companies in Nigeria have failed to measure up to the standard of international norms and ethics of the Corporate Social Responsibility (CSR). The give and take approach of the companies to their host communities is far from what is obtainable in the Europe and other developed countries in the world where standard is insisted on.
  5. It has been alleged that business practices are destroying life on earth and are responsible both directly and indirectly for the most dramatic human impact on the ecosystem like what is happening in Nigeria‟s Niger- Delta where oil spillage has destroyed a vast ecosystem. Therefore, it will be of immense benefit a further study is carried out to assess the corporate social responsibility of the Rumuolumeni cement factory to Rumuolumeni, Rivers State.

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