Industrial activities are responses to the need to better the lots of man but these are not without attendant consequences on the environment. This paper examined the effect of industrial pollution on residential neighbourhood using Amuwo Odofin industrial layout as case study. A total number of 350 questionnaires were administered on the residents who were selected using stratified random sampling technique on one hand and 100 questionnaires on the industrial workers on the other hand to elicit information on the impact the industrial activities have on the neighbourhood. The workers were selected using systematic random sampling technique where the 1st and every 10th item were selected. Descriptive statistical techniques were used in analysing the data collected. The result showed that various forms of environmental pollution emanating from industrial activities are prevalent in Amuwo Odofin. The paper concluded that the industrial activities have negative effects on the neighbourhood and recommended amongst others that, there is the need for organizing seminars on environmental protection awareness for both entrepreneurs and individuals to create an awareness of the effect of the activities on the environment.