welfare programmes and employees performance in … · daramola, gloria c.1 tafa, zainab o.1...
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Sahel Analyst (AJOM): ISSN 1118- 6224 Page 74
WELFARE PROGRAMMES AND EMPLOYEES PERFORMANCE IN
BELLS UNIVERSITY OF TECHNOLOGY, OGUN STATE NIGERIA
Okafor, Linus Izediuno1
Daramola, Gloria C.1
Tafa, Zainab O.1
Abstract
The impact of welfare programmes on employee performance has been the
focus of serious research effort in recent times. The study identified the types
of welfare programmes existing in Bells University of Technology, and also
determined the relationship between income level and employees’
performance, all with a view to ascertain the relationship between employee
welfare programmes and employees’ performance. Primary data were used
in this study, and the research adopted a descriptive research design. In
analyzing the questionnaire, data analytical procedure of frequency and
percentages were used as descriptive statistics. Inferential statistics of factor
analysis was used to identify the types of welfare programmes while Pearson
correlation was used to test the two hypotheses in the study. The study
findings established that that there are various employee welfare programs
provided at Bells University of Technology. The findings also established that
welfare programs have positive impact on the employees’ performance. The
findings also indicated positive linear relationship established between
welfare programs and Income level. The study recommends that employers
should learn to implement welfare programs for improved employee
performance.
Keywords: Welfare programmes, Income level, Employee performance,
Bells University of Technology
Introduction
Employees are the back bone of every organization, without employees no
work can be done. The term “labour welfare”, “employee welfare” and
“workers welfare” are used interchangeably to denote various services
provided by the employers to the employees in addition to wages. Welfare
benefits are a necessity in every organization today. Employees have to be
1 Department of Business Administration, Bells University of Technology, Ota,
Nigeria
African Journal of Management (Vol.3, No.2 2018), Business Admin. University of Maiduguri
Sahel Analyst (AJOM): ISSN 1118- 6224 Page 75
kept motivated at all times through various measure and activities. The
concept of welfare is necessarily dynamic, bearing a different interpretation
from country to country, from time to time, and even in the same country,
depending upon its value system, social institution, degree of industrialization
and general level of social and economic development. Even within a
country, its content may differ from region to region (Supriya 2017).
Workers are essential to the means of production (Drucker, 2010); they
deserve to be treated with respect and given proper welfare packages and
incentives (Noguera, 2005). These will improve their sense of worth, boost
their self- esteem, financial status and act as, a sort of motivation to drive
them to have more passion for their job, which is expected to be pursued by
employers who look beyond instant profit making as opposed to enduring
sustainable business earning of profits in perpetuity (Deeprose & Thorsen
2006). Lack of inadequate welfare packages and other incentives leads to
poor workers motivation which greatly affect their outcomes hence, there is
need for employers to give staff welfare package and other incentives for the
benefits of the employees, employers and the organization (Okereke & Daniel
2010). There have been a lot of concerted efforts at national and international
levels to set standards with minimal government interference and free market
forces that would serve as a framework to guide labour relations between
employees and employers and thus confer on workers certain rights once
there is an established contract of employment (Oginni & Adesanya, 2013).
Employees‟ welfare programme has been defined in various ways by many
authors. Yoder et al (1958) defines the term as a wide variety of services
provided by companies for employees, and in some cases, for members of
employees‟ families. Shubin (1957) sees it as additional incentives given to
employees by management to argument their wages. Moreover, Ejiafor
(1986) perceives employees‟ welfare package from monetary and non-
monetary perspectives when he defines it as something of value, apart from
agreed regular monetary payments of salaries and wages given by an
employer to an employee. A fine distinction is made by Ejiofor between
benefits and service. According to him, benefits are when direct monetary
reward accrues to the individual worker. For example, pension, leave pay, and
salary advance, while services involve no direct and identifiable monetary
benefit. Examples of such include the establishment of staff clubs, recreation
facilities, picnics, dances and festival parties. It is in line with this the
Ekpiken (1983) and Yesufu (1984) describe welfare programme as including
the provision of well ventilated offices, drinking water, end-of-year parties,
rest rooms, toilet, and first aid facilities by the management to the employees.
They also opine that providing employees with such things as canteens,
subsidized meals, medical facilities, recreational facilities, subsidized
Welfare Programmes and Employees Performance in Bells University of Technology, Ogun
State Nigeria
Sahel Analyst (AJOM): ISSN 1118- 6224 Page 76
transport facilities, housing or housing allowance are regarded as welfare
programmes.
On the other hand, employee performance in any organization is vital, not
only for the growth of the organization, but also for the growth of individual
employee (Meyer & Peng 2006). An organization must know who are its
outstanding workers, those who need additional training and those not
contributing to the efficiency and welfare of the company or organization.
Also, performance on the job can be assessed at all levels of employment
such as: Personnel decision relating to promotion, job rotation, job
enrichments etc. (Aidis, 2005; Meyer & Peng 2006). And, in some ways, such
assessments are based on objective and systematic criteria, which include
factors relevant to the person„s ability to perform on the job. Therefore, a
careful evaluation of an employee„s performance can uncover weak-nesses or
deficiencies in a specific job skill, knowledge, or areas where motivation is
lacking. Once identified, the deficiencies may be remedied through additional
training or the provision of the needed rewards.
Concept of Welfare Programme
Worker‟s right is a very broad issue; however, it can be brought down to the
protection and respects of human life in the work place and the right to work
itself (Seidman, 2007). Some components of workers‟ rights are the right to
job safety, collective bargaining and equal pay for equal work and
employee‟s welfare. However, the focus of this work is on the employees‟
welfare programmes, such as Medicals and Medical Compensation, Annual
and Maternity Leave, Compassionate and Sick Leave, housing facilities,
conveniences, allowances, child welfare, educational facilities, and
restaurants. Employee welfare is a major issue in industrial relations because
welfare programmes and services enhance profitability but with bottom-line
employees and high level of unemployment, employers have more room to
dodge welfare services. Employee‟s welfare is also referred to as better work
opportunities for employees, which also relates to taking care of the well-
being of workers by Employers of labour, Trade Unions, Government and
Non-Governmental Agencies. International Labour Organization (2010) at its
Asian Regional Conference, defined employees‟ welfare as a term which is
understood to include accessibility to services such as facilities and amenities
as may be established in or in the vicinity of undertakings to enable the
persons employed in an organization to perform their work in a healthy,
congenial environment conducive to good health and high morale.
Employees‟ welfare has two aspects, negative and positive (Osterman, 2000).
On the negative side, the employees‟ welfare is concerned with counteracting
the beneficial effects of the large scale industrial system of production. On the
African Journal of Management (Vol.3, No.2 2018), Business Admin. University of Maiduguri
Sahel Analyst (AJOM): ISSN 1118- 6224 Page 77
positive side, it deals with the provision of opportunities for the worker and
his/her family for a good life as understood in its most comprehensive sense.
A further argument in favor of employees‟ welfare is that it gives a reputation
that shows care and concern on the part of the employer and helps improve
the local image of the Company as a good employer. Good reputation assists
the organization‟s recruitment processes and productivity in the long run.
Welfare may not directly increase productivity,(Armstrong, 2003) but it may
add to the general feelings of satisfaction with the company, improves the
self-worth of the employee and cut down on employee turnover.
The International Labour Organization (2010) classifies welfare services into
two; intra-mural activities and extra-mural activities. Intra-mural activities are
those provided within the organization, they include latrines and urinals,
drinking water, washing and bathing facilities, crèches, rest shelters and
canteen, drinking water, arrangements for prevention of exhaustion, health
services including occupational safety, uniform and protective clothing and
shift allowances. Extra-mural activities which are undertaken outside the
organization such as maternity benefits, social insurance measures like
gratuity pension, rehabilitation, physical fitness and efficiency, family
planning and child welfare, education facilities, housing facilities,
recreational facilities including sports, cultural activities, transport to and
from the place of work (Manju & Mishra, 2007).
Welfare programmes can also be classified into two: statutory and non-
statutory welfare programmes. Statutory welfare is the product of the coercive
power of the government. Statutory stipulations compel employers to
implement welfare programmes. The government enacts rules in regard to
labour welfare in order to enforce the minimum standard of health and safety
of the workers. Employers have to observe the rules relating to working
conditions, hours of work, hygiene, safety, light, ventilation, sanitation etc.
Statutory welfare services are those which have to be provided irrespective of
size of the establishment, say, drinking water. Also, those which have to be
provided subject to the employment of a specified number of people, such as
Crèche, first aid equipment‟s, facilities for sitting, welfare officers etc. while
non-statutory or voluntary welfare includes all those activities employers
undertake for their workers on a voluntary basis. This includes services such
as recreational services, housing facilities, medical facilities, leave travel
concession, economic services etc. (Ankita 2010). Armstrong (2006) argues
that medical services aim to provide help to employees who get absent from
work for long periods because of illness related issues. They should aim to
speed the return of employee to work. Visits should be made by the managers
to ill employees with the aim of showing employees that their firm and
colleagues are concerned about their welfare and also to lessen any loneliness
Welfare Programmes and Employees Performance in Bells University of Technology, Ogun
State Nigeria
Sahel Analyst (AJOM): ISSN 1118- 6224 Page 78
they may feel. Armstrong (2006) argues that organizations such as the Health
and Safety Executive have identified stress, anxiety and depression as among
the most commonly reported illness. Stress brought about through work
intensification and conflicts between home and work is related to the risks of
disease and ill-health.
Employee performance The term performance describes how an employee carries out the tasks that
make up the job. Good performance results from efforts, ability and
direction. Employee performance can therefore be defined as the totality of
the financial and other non-financial rewards that an employee receives in
return for his labour or services. It includes his basic pay and other numerous
financial and non-financial benefits and incentives. The totality of which
determines how well he lives in the society (Fagbamiye, 2000). Performance
is the achievement of specified task measured against predetermined or
identified standards of accuracy, completeness, cost and speed. Desired
performance can only be achieved efficiently and effectively, if employee
gets a sense of mutual gain of organization as well as of himself, with the
attainment of that defined target or goal. Efficiency and effectiveness are
ingredients of performance apart from competitiveness and productivity and
training is a way of increasing individual‟s performance (Tessema & Soeters,
2006). Tessema & Soeters (2006) categorized employee performance into
task and contextual or citizenship performance behaviors.
Task performance includes behaviors which an employee performs to
accomplish tasks given to him by his supervisor or behaviors associated with
core technical activities of the organization. Whereas, contextual or
citizenship performance includes behaviors which establishes the
organizational social and psychological context and help employees to
perform their core technical or task activities. Pawlowski (2005) noted that
what motivates employee (a) may be different from what motivates employee
(b) therefore, the organization must identify and stipulate the various means
that could enhance employee performance. Furthermore, welfare programmes
has been identified as the salient tools in actuating employee performance.
Research Methodology
The research design used for this study is descriptive survey research design
which employed a well self-administered questionnaire for data collection
from respondents in Bells University of Technology. Random sampling
techniques were used to select the respondents. Primary data were collected
through structured questionnaire.
African Journal of Management (Vol.3, No.2 2018), Business Admin. University of Maiduguri
Sahel Analyst (AJOM): ISSN 1118- 6224 Page 79
Sample and Sampling Technique
The sample was drawn from various departments of Bells University of
Technology. Sampling technique describes the method used in outlining the
sample size from the population of the study. The population of the study is
large hence, it will be difficult if not impossible to reach the entire
respondents, therefore random sampling technique was used in carrying out
this research and the result will be unbiased. Random sampling was adopted
for this study so that the entire respondent will have equal chance of been
selected and also to control extraneous variables.
Sources of data collection
Primary data was used for the purpose of collecting information for this
research and the instrument that was used was questionnaires. Questions were
structured in line with the research hypothesis and other relevant questions in
the study.
Data Analysis
The data collected was analyzed using both the descriptive statistics and the
inferential statistics. For the purpose of this study, descriptive statistics of
tables and percentages was used for data presentation. The study also made
use of factor analysis to identify the types of welfare programmes existing in
Bells University of Technology.
The study made use of the correlation to test the significance of the
relationship between employee welfare programs and employees‟
performance and also to test the significance of the relationship between
income level and employee performance.
Data Presentation
Table 1: Gender of the Respondent
Source: Author Field Survey, 2017
From the table 1, the institution has more of male employees than female
employees. The percentage of the male respondent is 52% as compared to the
female respondent which is 48%. The findings indicate that majority of the
respondents were male but the difference is not significant. This implies that
the study was not influenced by gender imbalance.
Frequency Percent Valid Percent Cumulative Percent
Valid Male 78 52.0 52.0 52.0
Female 72 48.0 48.0 100.0
Total 150 100.0 100.0
Welfare Programmes and Employees Performance in Bells University of Technology, Ogun
State Nigeria
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Table 2: Age of the Respondent
Source: Author Field Survey, 2017
From the table 2, 64% of the employees are less than the age of 41, 24% are
within the age of 41-50 while the remaining 12% are 51 years and above. The
institution has more of employees who are less than 41 years, the implication
of this is that the institution has more young people which means more
manpower for the organization which invariably improves work output.
Table 3: Educational and professional qualification.
Source: Author Field Survey, 2017
From the table 3, it was established that the institution 8% employees with O
levels, 12.7% of employees with NCE/HND, 25.3% B.Sc. holders, 34.0%
M.Sc. holders and 20.0% employees with Ph.D.
Table 4: Position of the Respondents
Frequency Percent Valid Percent
Cumulative
Percent
Valid (21-30) 34 22.7 22.7 22.7
(31-40) 62 41.3 41.3 64.0
(41-50) 36 24.0 24.0 88.0
51 and above 18 12.0 12.0 100.0
Total 150 100.0 100.0
Frequency Percent Valid Percent
Cumulative
Percent
Valid O levels 12 8.0 8.0 8.0
NCE/HND 19 12.7 12.7 20.7
B.Sc. 38 25.3 25.3 46.0
M.Sc. 51 34.0 34.0 80.0
Ph.D. 30 20.0 20.0 100.0
Total 150 100.0 100.0
Frequency Percent Valid Percent
Cumulative
Percent
Valid Junior 47 31.3 31.3 31.3
Senior 42 28.0 28.0 59.3
Middle 61 40.7 40.7 100.0
Total 150 100.0 100.0
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Sahel Analyst (AJOM): ISSN 1118- 6224 Page 81
From the table 4, the institution has 31.3% junior employees, 28.0% senior
employees and 40.7% middle level employees,
Table 5: How long have you worked in the organization.
Source: Author Field Survey, 2017
From the table 5 above, the data revealed that majority of the employees have
worked for the institution for 2-5 years 38.7%), followed by those who have
served the institution for 6-10 years(28.7%), then those who had long-term
service to the institution of above 10 years(18%).
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid less than 2 years 22 14.7 14.7 14.7
2-5 years 58 38.7 38.7 53.3
6-10 years 43 28.7 28.7 82.0
More than 10 Years 27 18.0 18.0 100.0
Total 150 100.0 100.0
Welfare Programmes and Employees Performance in Bells University of Technology, Ogun
State Nigeria
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Table 6: Types of welfare programmes existing in Bells University of
Technology (Communalities)
Initial Extraction
Are there provisions for housing facilities? 1.000 .536
The institution provides uniforms, safety garments and
equipment: fire extinguishers, gloves, sanitary effects, gas masks,
first aid kits. 1.000 .569
Are there provisions for medical facilities? 1.000 .713
Are there provision for child welfare services? 1.000 .696
The institution allows for lenient sick and maternity leave. 1.000 .468
The institution has pension scheme. 1.000 .455
Does the institution provide educational facilities? 1.000 .699
The institution provides sports facilities, clubs and gyms for
physical fitness. 1.000 .781
Does the institution have standard restaurants 1.000 .603
The institution has room for meetings. 1.000 .682
The institution provides libraries. 1.000 .660
Are recreational facilities available? 1.000 .639
The institution provides conveniences such as urinals, offices,
toilets, sitting facilities etc. 1.000 .631
The institution provides airtime and mobile phone for my
communication. 1.000 .752
The institution has made arrangement with financial institutions
(banks) to provide cheap loans or credit facilities. 1.000 .662
The institution has commuter allowance subsidies and car loans to
facilitate staff transportation. 1.000 .626
Extraction Method: Principal Component Analysis.
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Table 7: Total Variance Explained
Extraction Method: Principal Component Analysis.
Component Initial Eigenvalues Extraction Sums of Squared Loadings
Total
% of
Variance
Cumulative
% Total
% of
Variance Cumulative %
1 4.154 25.962 25.962 4.154 25.962 25.962
2 2.329 14.558 40.520 2.329 14.558 40.520
3 1.454 9.086 49.607 1.454 9.086 49.607
4 1.205 7.532 57.139 1.205 7.532 57.139
5 1.030 6.436 63.575 1.030 6.436 63.575
6 .921 5.759 69.334
7 .859 5.367 74.701
8 .645 4.029 78.730
9 .634 3.961 82.692
10 .586 3.663 86.354
11 .475 2.969 89.324
12 .438 2.737 92.060
13 .402 2.510 94.571
14 .340 2.123 96.694
15 .274 1.710 98.403
16 .255 1.597 100.000
Welfare Programmes and Employees Performance in Bells University of Technology, Ogun
State Nigeria
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Table 8: Component Matrix (a)
Component
1 2 3 4 5
Are there provisions for housing facilities? .056 .552 .113 -.363 .288
The institution provides uniforms, safety
garments and equipment: fire extinguishers,
gloves, sanitary effects, gas masks, first aid kits.
.539 .168 .472 .129 .103
Are there provisions for medical facilities? .751 -.107 -.007 .096 .359
Are there provision for child welfare services? -.128 .683 .188 -.172 .384
The institution allows for lenient sick and
maternity leave. .616 .028 .181 .074 .223
The institution has pension scheme. .563 .228 -.077 .056 -.278
Does the institution provide educational
facilities? .539 .443 -.127 -.351 -.269
The institution provides sports facilities, clubs
and gyms for physical fitness. .449 .362 .460 .027 -.485
Does the institution have standard restaurants .575 -.099 .447 .247 .046
The institution has room for meetings. .689 -.088 -.225 .071 .379
The institution provides libraries. .440 .348 -.443 -.383 -.040
Are recreational facilities available? -.466 .614 .191 .004 -.093
The institution provides conveniences such as
urinals, offices, toilets, sitting facilities etc. .686 -.018 -.381 .034 -.118
The institution provides airtime and mobile
phone for my communication. -.416 .538 -.010 .530 .094
The institution has made arrangement with
financial institutions (banks) to provide cheap
loans or credit facilities. .396 .298 -.297 .544 -.177
The institution has commuter allowance
subsidies and car loans to facilitate staff
transportation.
-.270 .493 -.447 .308 .124
Extraction Method: Principal Component Analysis.
Interpretation
From the factor analysis above, table 6, 7 and 8, the welfare programmes
identified are those programmes with heavy factor load. For example in the
first rotation of the component matrix, programmes such as Medical facilities
= 75.1%, room for meetings = 68.9%, conveniences = 68.6%, sick and
maternity leave = 61.6%, standard restaurants = 57.5%.
Rotation two includes: child welfare = 68.3, recreational facilities = 61.6%,
housing facilities = 55.2%.
Rotation three includes: safety equipments = 47.2%, sport facilities 46%
African Journal of Management (Vol.3, No.2 2018), Business Admin. University of Maiduguri
Sahel Analyst (AJOM): ISSN 1118- 6224 Page 85
Rotation four includes: credit facilities = 54.4%, mobile phones and airtime =
53%
Rotation five: sport facilities = 48.5%
From the table 8 above, it is obvious that medical facilities, room for
meetings, conveniences, sick and maternity leave and restaurants are highly
provided by the institution.
Relationship between welfare programmes and employees’ performance The study sought to determine the relationship between welfare programmes
and employees‟ performance. Pearson correlation analysis was used to
achieve this.
Table 9: Correlations
Welfare
programmes
Employee
performance
Welfare programmes Pearson Correlation 1 .325(**)
Sig. (2-tailed) .000
N
150 150
Employee performance Pearson Correlation .325(**) 1
Sig. (2-tailed) .000
N 150 150
** Correlation is significant at the 0.01 level (2-tailed).
Interpretation
If the significance is < 5%, the alternate hypothesis is accepted while the null
is rejected. If the significance is >5% the null hypothesis is accepted while the
alternate is accepted. The results in table above indicate that there is
significant and positive relationship between welfare programmes and
employees‟ performance. From the table, correlation is significant at 0.01
level which is > 5%. The alternate hypothesis is therefore accepted. There is a
moderate positive correlation of 32.5% between welfare programmes and
employees performance. This means that when there is an increase in the
welfare programmes provided such as medical facilities, restaurants,
conveniences etc. given to employees, there is also a corresponding increase
in employees‟ performance.
Welfare Programmes and Employees Performance in Bells University of Technology, Ogun
State Nigeria
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Relationship between income level and employee performance
The study sought to determine the relationship between income level and
employees‟ performance. Pearson correlation analysis was also used to
achieve this.
Table 10: Correlations
Income Employee performance
Income Pearson Correlation 1 .297(**)
Sig. (2-tailed) .000
N 150 150
Employee performance Pearson Correlation .297(**) 1
Sig. (2-tailed) .000
N 150 150
** Correlation is significant at the 0.01 level (2-tailed).
From the table, correlation is significant at 0.01 level which is > 5%. The
alternate hypothesis is therefore accepted while the null hypothesis is
rejected. The table indicates that there is a positive and significant
relationship between income level and employees‟ performance i.e. a relative
increase in an employees‟ income level will result to a relative increase in
employees‟ performance. There is a weak positive correlation of 29.7%
between income level and employees‟ performance.
Conclusion
The importance of welfare programmes in the daily performance of
employees‟ cannot be over emphasized. It is a known fact that welfare
programmes improves employees‟ performance. From this study, it can easily
be deduced that employees‟ welfare programmes means a lot and should be
of great concern to the employers of labour. The results gotten from the
hypotheses shows that employees places great value on the various welfare
programmes provided for them by their employers. Hence, when these
programmes are not provided, employees tend to show their dissatisfaction
through poor performance and non- commitment to their work. It is therefore
essential for the institution to consider the needs and feelings of the
employees and not just neglect them in order to safe guard industrial harmony
because “a happy worker they say is a productive worker”. Welfare
programmes are driving forces that energize employees to show increased
African Journal of Management (Vol.3, No.2 2018), Business Admin. University of Maiduguri
Sahel Analyst (AJOM): ISSN 1118- 6224 Page 87
commitment to work and to improve his or her performance. These are in
form of medical facilities, conveniences (urinals, offices, sitting facilities,
toilets etc.), recreational facilities, prompt payment of salaries and so on. This
is one of the most important ways to ensure that employees are properly
motivated to perform better, it is therefore of high importance to adopt the
necessary welfare programmes to ensure employees increased performance.
In conclusion organizations should provide welfare programs in order to
motivate and retain employees, to improve employees' performance, health,
social status and economic condition. The logic behind welfare programs is to
prepare efficient, loyal, healthy and satisfied workers for the organizations.
Services such as medical facilities, education for employees families and help
in improving their life living standard and makes employees to concentrate on
their job. Competitive salaries, benefits that meet the needs of employees for
economic and non-work needs, opportunity for learning and development and
friendly work relationship provide a significant amount of motivation for
employees. Retention is key issue in today's competitive business world and
organizations should offer something more than wage and salary in order to
keep key employees.
Recommendations It is therefore recommended that Bells University of Technology should
encourage the formation of employee welfare programmes owing to its
antecedent effect on performance. Bells University of Technology should
consider employee welfare programs as a strategy to motivate employees, and
improve efficiency in the institution. There is a need to further improve these
facilities and work environment within Bells University of Technology by
way of having modern equipment for improved work performance.
It is also recommended that all institutions should put in place, proper welfare
programme policies and have an authority to oversee the best implementation
of welfare programmes. Human resource managers should be properly
equipped with knowledge on implementation and utilization of welfare
programme practices and work life balance in order enhance organizational
efficiency. It is also recommended that Bells University of Technology
should encourage creativity and innovative attitude to allow room for new
ideas and ways of doing things.
Welfare Programmes and Employees Performance in Bells University of Technology, Ogun
State Nigeria
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