A CONTRIBUTION OF MARBLE MINING COMPANY TO THE ECONOMIC DEVELOPMENT OF IGBETTI COMMUNITY FROM 1969 TILL DATE

A CONTRIBUTION OF MARBLE MINING COMPANY TO THE ECONOMIC DEVELOPMENT OF IGBETTI COMMUNITY FROM 1969 TILL DATE

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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Industrialization is a term that is mostly associated with the development experience of countries in Western Europe and North America during the 19th and 20th centuries (Purma, 2001).  According to Perkin, Radalet, Snodgrass  Gillis, and Roema,(2001), Industrialization refer to a part of a wider modernization process where social change and economic development are closely related with technological innovation, the application of science to the problems of economic production leads to industrialization, urbanization and improved quality of the population. Consequently, a high premium is placed on the development of the industrial sector of developed economies. Quite often, it is argued that the developed countries of the world attain this level of development because of the technology that increases the number of industries within their economies. 

Industrialization broadly refers to the transformation of agrarian-rural societies to industrial- urban societies that are dominated by manufacturing and services (Maddison, 2007). The beginning of this transformation often referred to as the industrial revolution, is conventionally traced to the late 18th Century England. Industry is also more narrowly equated with manufacturing and industrialization is specifically associated with the growth of manufacturing with the so called factory system that began to proliferate at this time (Angus, 2001). In this early sense, it refers to a marked departure from a subsistence economy that is largely agriculture towards a more mechanized system of production that entails more efficient and more highly technical exploitation of natural resources in highly formal and commercialized economic settings (John, 1997). Industrialization is a process of social and economic change whereby a human society is transformed from a pre-industrial to an industrial state (Nove, 2005). In the early sense, it was referred to as a marked departure from a subsistence economy that is largely agricultural towards a more mechanized system of production that entails more commercialized economic settings (John, 1997).  Industrialization was understood purely on economic terms particularly the physical presence of industrial plants that were involved in manufacturing capital goods as well as processing raw materials into finished goods either for industrial use, general commercial use or purely for domestic use or purposes (Todaro, 1989). Further definition of industrialization during the later part of the 20th century expanded to refer to a process of development that is balanced and sustained as far as the economic as well as socio-economic realm of any society is concerned (Oyenga, 1988). Industrialization is a critical key to economic growth that calls for improvement in systems, technologies and processes that utilizes natural resources more effectively. Interestingly, about a fifth of global income is generated from manufacturing industry and nearly half of household consumption relies on goods from industrial processes (Ibbih and Gaiya, 2013) 

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 infrastructural 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 Marble mining  Plant by Ogun State government, Sokoto

Marble mining  by the Sokoto State Government and that of Igbetti Marble mining  plant owned by Dangote in Oyo 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,and Fagbohunka 2012). 

After the Second World War, political leaders in the third world favoured developmental strategies based on rapid industrialization. Raw material production was regarded as a legacy of the colonial era and industrialization was regarded as essential to raise the living standard of the masses. Over the last seventy years, there has been a shift away from the advanced capitalist or first world. Until the late 1920s Western Europe, North America and Japan accounted for over 90% of the world industrial production (Jenkins, 1992).

The efforts of the government to use mineral deposits to promote national economic growth have been matched by similar attempts to base the development of peripheral regions upon investment in mining (Afeni, Cowood and Isiaka , 2008). The gold resources of the Witwatersrand were discovered in 1886 and were responsible for rapid growth of Johannesburg which remains the economic core of South Africa. Similarly, the forty miners attracted by john Sutter‟s chance discovery of gold were the catalyst in California‟s rise to economic importance and the population of San Francisco rose from just 450 in 1847 to more than 55,000 by 1860 (Warren, 1998) This experience demonstrates the operation of process on the circular and cumulative causation based on the initial advantage provided by mineral resources (Chapman and Walker, 1998). It could be glaringly seen that, the most significant impact of exploitation of minerals has caused the migration of thousands of foreign and non-local employees to the area occupied by a mine, concomitantly upset the social balance of the local communities, impacting on local water supplies and the available resources. 

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, Marble mining company, 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 Marble mining company, the federal government had in the early 1950s explored the possibility of establishing a Marble mining factory in Nigeria. This followed the discovery of large quantity of marble deposits in the area. But this plan was not completed, nor was the Nigerian Marble mining Company incorporated until 1954 (Ugoh, 1977). After this period, more Marble mining company were established. They include the Igbetti marble mining in Oyo state, OFL Fujian stones and Dimensions stones in Maraba, Nassarawa state.

The establishment of Marble mining 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. Marble mining 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 Igbetti 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, Marble mining  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

Industrialization is often seen as the basis for the economic development and growth of any nation. Nigeria like many other countries aspiring to attain economic growth and development has long embraced the concept of industrialization and has since been concentrating her effort toward achieving it. The location of industries in areas where they are not existing before have been seen to have some effects on such places. 

Several studies have thus, been carried out on the prospects and effects of Marble mining industrialization on most of Africa’s populace. Winmore, Nyashadzashe and Thomas (2012) maintained that Marble mining is a basic construction ingredient. Its demand is high due to extensive infrastructural development taking place across the globe. Global consumption of Marble mining has been increasing at an alarming rate. According to Hannah (2011), Marble mining production in Africa rose from 1.2 billion tones per annum in 2005 to 2 billion tonnes per annum at the end of 2010. In Africa, persistence rise in the price of building material and constant importation of Marble mining has led to the speedy development of Marble mining company (Afeni, Cowood and Isiaka, 2008). However, Harley (2007) noted that whilst Marble mining  manufacturing industries bring so many benefits in form of markets for local goods, local people normally failed to harness these opportunities. 

The production of Marble is known to have multiple negative impacts on the surrounding environments and human health, in both developed and developing countries (Harley, 2007). Akande and Idris (2005) revealed that Marble  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 marble in Igbetti, Oyo 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 Marble mining  manufacturing plants was poor and characterized by poor education and subsequently, high percentage of illiteracy. This clearly shows that establishment of lucrative Marble manufacturing ventures in rural communities does not guarantee improvement in their living conditions. However, they did their research when the Marble mining factory was still at its infant stage. As at the year 2008, Igbetti Marble mining factory has the production capacity of about five million metric tones of Marble mining 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 marble 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.

 Musa and Kpanache (2014) carried out a research on the impact of Igbetti as a growth pole in Igbetti. The study examined the regional extent of the multiplier effects induced by the Marble mining company in the region. It also assesses the socio-spatial and economic development within and around the host community before and after the establishment of the Marble mining industry. Data sourced through personal observation of the researcher, questionnaires and oral interviews were analyzed with the use of descriptive statistics. The finding of the study shows that the region is experiencing spatial growth and development. Therefore, the researcher will focus on social and economic development the company has brought to the community.  

 Aribigbola et al (2012) assessed the health and environmental challenges of Marble mining factory on Ewekoro community residents in Ogun State. Interviews were conducted; Questionnaires were randomly administered to both residents and staff of Ewekoro Marble mining factory. The data were analyzed through descriptive statistics. The study confirms extensive incidence of land, air and noise pollution over and above recommended limit. It also discovers lack of substantial compliance with the principle of environmental integrity sustainability and National Environmental Standard Regulatory Authority (NESRA) in terms of environmental resource protection. This study will focus on the social and economic aspect rather than the physical and environmental impact of the factory on Igbetti. 

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 Marble mining  production and how if impact on the people of the study area. 

Mojiminiyi, Merenu, Njoku and Ibrahim (2008), examined the effect of Marble mining dust exposure on haematological and liver function among Marble mining 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 Marble mining dust may perturb haemopoietic function while preserving liver. This study will involve both the Marble mining factory workers who are resides in Igbetti as well as other residents. 

From the foregoing however, majority of the researches focused only on environmental and health impacts of Marble mining company on the populace. Only a few focused on the socio-economic implication on the people holistically. It is expedient to note that the cost of development could be detrimental on the short run but beneficial on the long run. It can be seen from the previous studies reviewed above that limited research were carried out on Igbetti Marble mining factory especially on the socioeconomic aspect. Hence, it became imperative for the researcher to focus in assessing the impact of the Marble mining factory on the socio-economic development on the Igbetti community.

RESEARCH QUESTIONS

In order to fill this existing gap in knowledge, this study will address the following research question:

1                    What are the factors responsible for the establishment of Igbetti Marble mining Factory in Igbetti?

2                    What are the social-impact of the Igbetti Marble mining factory to the immediate community? 

3                    What are the economic-impact of the Igbetti Marble mining Factory on Igbetti residents?

4                    What is the impact of Igbetti Marble mining factory on the infrastructural development?

       1.3       AIM AND OBJECTIVES OF THE STUDY

The aim of this study is to assess the impact of Igbetti Marble mining Factory in Igbetti on the socioeconomic development of Igbetti community. However, the specific objectives are to

  1.To examine the factors responsible for the establishment of the Marble mining  factory.

 2. To analyze the social impact of Igbetti Marble mining Factory to the people of Igbetti.

 3. To examine the economic impact of Igbetti Marble mining Factory to the people of Igbetti.

 4.To assess the impact of Igbetti of Igbetti Marble mining  factory on the infrastructural development of Igbetti community. 

1.4  SIGNIFICANCE OF 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 Marble mining 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 Igbetti Marble mining Factory in Igbetti 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.

1.5   SCOPE OF THE STUDY

The scope of this study is to assess the impact of Igbetti Marble mining Factory on the socio- economic development of Igbetti, Oyo State. Igbetti is in Olorunsogo local government area of the state. Igbetti district covers about nine (9) villages (Musa and Kpanache, 2014). As a result of the wideness of the study area, only Igbetti community was picked out of the villages in the district. This is because Igbetti is the largest in terms of human population and residential houses among other neighboring communities in the district. Besides, Igbetti is the hub of economic activities being the location of the giant industry.  In achieving this goal, the demographic characteristics such as age, gender, number of children were examined. The study also examined the socioeconomic determinants of respondents such as income, level of education, religion, occupation etc.


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