| Content | Abstract
This project work is on Effect of infrastructural development on land value in Owerri municipal, a case study of new Owerri. Housing goes beyond mere shelter to include the facilities and other things in the environment that makes living comfortable for man, hence Olujimi opined that for housing to produce this impact, it must be adequately provided with functional infrastructural. To this end, this research work examined the Effect of Infrastructural Development on Land Value in Owerri Municipal. A Case Study of New Owerri. The survey research design was adopted. The major instrument for data collection was the questionnaire which was administered to two (2) Groups of respondents. Group 1 comprising residents, workers and traders, while Group 2 are estate firms. Both primary and secondary data were applied. Radom sampling techniques was employed. Frequencies, tables, percentage ratio, bar charts, histograms and pie charts were used for the data presentation and analysis. Hypothesis was tested using chi-square. The study revealed that infrastructural development affect land value. The study therefore, recommended that the government at various levels should engage in funding and execution of infrastructural development projects in order to create a sustainable and high standard living environment and improve national economy. | CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
This research is on Rural infrastructural development a means of combating rural-urban migration in Nigeria. The rural development constitute strategic sector in every nation’s economy and their rapid development and modernization have gained the attention of policy makers and government all over the world. This is because a sizeable majority of the population lives therein, therefore, the future of most countries especially the developing ones depend largely on it. Schumacher (1983) defined rural development as developing the skill of the masses to make them self-reliant through instructions which supply appropriate and relevant knowledge on the methods of self -help.
Ekpe (2006) viewed rural development as the provision of physical infrastructure. The logic that under-girds this conception is that, the provision of such basic amenities like schools, hospitals, recreational facilities, good road network, electricity and pipe-borne water (portable water) are capable of transforming the rural communities and thus make them attractive for habitation. This is contended to be the most functional way of reversing rural Urban Migration.
However, available literature on rural areas reveal that population is the main characteristic that differentiates rural from the Urban areas especially in the developed countries. Onibokun (1987) had in a policy paper on rural development revealed that rural population constitutes 70-80 % of the entire population of some countries particularly in the third world nations. Based on this single characteristic which is inadequate. Using the census figure 0f 140 million according to the national population census of 2006, over 70% of Nigeria are in the rural areas .population cannot be the only determining factor for a rural area in Nigeria because there are some features that unmistakably tell people when they are in a rural area (Ladi et al, 2009).
On the basis of this, what constitutes rural population or environment is instructive in this regard. Idike (2000) observes that the main features of rural areas are depression, degradation and deprivation. Many rural populations are immersed in poverty so palpable that the people are the embodiment of it. According to him, in many rural areas in Nigeria, basic infrastructure, where they exist at all, are too inadequate for any meaningful development. Physical infrastructures like motorable roads are often lacking. The villagers and their livestock in many rural villages depend on shallow wells or guinea worm infested ponds for their water supply. The villagers most of whom are farmers, work the land from sunrise to sunset to provide food that are cheaply bought up by middlemen (who can risk playing the usually deplorable roads) for resale to the city dwellers at very high profits.
Elaborating further, he said, in and around the villages one readily comes across children with distended tummies and spindly legs who are obvious of a better milieu from birth these ‘living that are better dead’ infants, toddler’s, youth etc. are malnutrition and they have no access to those amenities that make like worthwhile. Many rural communities in Nigeria have built schools through self-help efforts but most of the schools lack necessary teaching aids like science equipment, sitting and writing desks etc. Qualified teachers refuse serving in most of these areas because they are considered inhabitable for human beings without basic social amenities.
The above assertion is not only valid and tenable, it would be out off place to say that what constitutes rural population or environment is less than that.
The American Bureau of census classifies a group of people living in a community as rural, whereas in Nigeria, the Federal office of statistics defined a community with less than 20, 000 people as rural. According to Afolayan (1995), rural area can be easily identified by various criteria; apart from population such criteria include the level of infrastructural development i.e. road networks, educational institutions, water supply, electricity, health facilities, communication, etc. Other criteria used include occupation, housing and the extent of community policy.
In Leah et al (2013) view, rural dwellers are typically less vocal, characterized by a culture of poverty as most people have barely above subsistence level. This position tallies with that of Adefolarin (2015) who argued that rural dwellers are often a subject of poverty phenomenon, whose trade have only being robbed off by the activities of both political and economic elite’s base in the city. In other words rural dwellers in Nigeria have only little to show in attempt to alleviate the hard effects of government policies which barely acknowledge their existence but favor it with only routine care attention, with promise that are hardly fulfilled.
Ezeah (2005) states that rural areas refers to geographical areas that outside the densely built-up environment of towns, cities and the sub-urban villages and whose inhabitant are engaged primarily in agriculture as well as the most basic of rudimentary form of secondary and tertiary activities. The rural sector of Nigeria is vital to the socio-economic development of the Nation. Nyagba (2009) noted that, the most important sector of the Nigerian population is the rural areas. This according to Ugwuanyi and Emmanuel (2013) is because the rural section is the major source of capital formation for the country and a principal Market for domestic and raw materials for industries process. Abah (2010) argued that rural area dwellers have been found to engage in primary economic activities that form the foundation for the country’s economic development.
As it is conspicuously apparent from the foregoing, given the national economy, enhancing the development of the sector should be central to government and public administration. This is necessary as such would further enhance the ability of the sector for increased contribution to the overall national growth and development has become most desires in many countries in order to change and improve the situation and conations of the rural population.
Proceeding from Leah et al views, rural development has become most desires in many countries in order to change and improve the situation and conditions of the rural population.
Rural development has therefore been described in different ways by different authors, depending on the discipline or line of thought. This is because the approach to rural development is multidisciplinary. According to Aslam (1981) rural development is a process aimed at developing the rural poor, their economy and institutions from a state of stagnation or low productivity equilibrium into dynamic process leading to higher levels of living and better quality of life. In other words, rural development can be seen as a strategy which is designed to improve the economic and social life of a specific group of people, most especially the rural poor population. Aliy (199) posit that it involves extending the developmental strides and benefits people who seek a livelihood in the rural areas such as small scale farmers, tenants, artisans, school teachers, small scale business men, and traders etc. in order to improve their means of livelihood and mitigate the massive rural urban migration. However rural urban migration occurs at varying levels in every country.
According to Agyemang (2013) different motives account for rural urban migration amongst rural dwellers such as;
- socio-cultural issues where people are forced to migrate to avoid numerous social problems at their place of origin,
- Poor infrastructural development and lack of basic amenities ;
- Search for better economic opportunities such as job etc.
- Accessibility and ease of transportation and communication has also been noted to facilitate rural urban migration;
- The extension of road network from major towns to the peripheral urban and rural areas that resulted in the decrease in transportation cost and improved communication systems.
However, the situations in Nigeria as pose a discomforting problem facing this country socio-economic development. A situation where the desire for better employment, business opportunities and education push both young and old out of the rural areas to the urban areas. While the reasons for rural urban migration has it negative effect on both rural and urban environment (communities) are as follows;
- Rural urban migration considerably affect agricultural production that end up reducing food supply;
- Decline in production and manpower reduction in the rural areas;
- Slow pace of the rural areas development;
- Pressures on urban housing and the environment in general;
- High rate of population growth in the urban centers;
- Congestion and pressures on the available infrastructural amenities in the urban areas;
- Increased crime rate and insecurity in urban areas.
In addition Lykke (2002) opined that rural urban migration makes the highly educated and most agile people migrate from rural to urban areas, leaving behind the feeble and uneducated people who are not able to combat poverty successfully. This he argues consequently increases the differences in the standards of living of the rural and urban inhabitants. It is against the backdrop that I carried out this research on “Rural Development: A Means of Combating Rural Urban migration in Nigeria”.
1.2 STATEMENT OF THE PROBLEM
Incessant and excessive rural urban migration has brought about a lot of socio-economic difficulties both in the rural and urban areas. McCarthy (2004), opined that ‘excessive urbanization, lead to crime and poor infrastructure such as proper sewage disposal system, safe and potable drinking water, electricity and other amenities, chronic unemployment with the attendant creation of large slums and shanty towns. Many developing countries including Nigeria have made several attempts to resolve these problems of rural urban development. In Nigeria, from colonial period till date, successive administration have tried to reform the rural areas where over 75% of Nigeria live in for the sake of attaining balance growth and development, and discourage rural-urban migration, to no avail (Omonigho, 2013). According to Nwakeze (2004), the Nigerian population is growing at an annual rate of 2.8 percent that of the urban population growing at 5.5 percent, it is pertinent to note that this rate is among the highest in the world today.
Given the contribution of the rural section to the national economy, enhancing the development of the sector should be priority to government and relevant stakeholders.
This is necessary as such would further enhance the ability of the sector for increased contribution to the overall national growth and development. Unfortunately, over the years, the development strategies and efforts in Nigeria has been more urban based resulting in the relative neglect of rural areas evidenced by the death of basic infrastructure in the rural areas such as good roads, well equipped and functional hospitals, electricity, pipe born water etc (Abah, 2010).
The Various Government Policy Programmes such as National Accelerated Food Production Programme (NAFPP), Agricultural Development Programme (ADP), National Directorate of Employment (NDE), Primary Health Care Programme (PHCP) and many others to stem Rural Urban Migration in Nigeria. It is evident that inspite of the various programmes, Rural Urban Migration still persist.The objectives interest of this Research is to find out why the problem still persist by identifying the various programmes and the gaps and objectives of the programmes.
Most disturbing is the fact that despite the colossal amount of resources committed to those programmes, rural urban migration situation aggravates, and more and more, rural people see the need to go to the urban city. The task of this study is to find out why the gaps still exists and what solutions should be suggested to close them.
1.3 AIM AND OBJECTIVES
The general objective of this study is to determine the effect of rural development on rural urban migration. The specific objectives are:
- To determine whether rural development can serve as a panacea to stem rural urban migration.
- To find out the socio economic causes of rural urban migration.
- To determine the implications of rural urban migration on rural development.
- To identify measures put in place for rural development by government.
1.4 RESEARCH QUESTIONS
In order to enable the researcher assess the effect of rural development in combating rural urban migration in Nigeria, the following research questions are posited.
- Can rural development serve as a panacea to stem rural urban migration?
- What are the socio-economic causes of rural urban migration?
- What are the consequences of rural urban migration on rural development?
- What measures are put in place by government to develop the rural areas?
1.5 HYPOTHESES
In order to enable the researcher assess the effect of rural development in combating rural urban migration in Nigeria, the following hypotheses will be tested:
- Ho: Rural development does not have any influence on rural urban migration in Nigeria
HA: Rural development has an influence on rural urban migration in Nigeria.
1.6 SIGNIFICANCE OF THE STUDY
The study will aid government agencies such as town planners at various tiers of government in formulating policies that will accelerate development in rural areas in order to reduce rural urban migration.
This research study will also help reveal the extent of the problem to relevant stakeholders so that they can rise to the occasion and put in measures to the occasion and put in measures to develop the rural areas in order to reduce rural urban migration. Finally, this research work will add to the existing body of knowledge on the importance of rural development in combating rural urban migration in Nigeria.
1.7 JUSTIFICATION AND SCOPE OF STUDY
This study will cover rural development and its impact on combating rural urban migration in Nigeria with special reference to the actual influence it has on the socio-economic activities and lives of rural dwellers, measures put in place by relevant stakeholders to combat the measures of rural urban migration in the study area.
Therefore, it is important that rural development strategies are thoroughly debated in terms of it contribution to reduce rural urban migration. This study is a contribution to the debate.
1.8 RESEARCH METHODOLOOGY
The study use two approach that have survey research methodology and the formation are;
- Content analysis for secondary data collection
- Survey research method for primary data collection.
1.9 ORGANIZATION OF THE STUDY
This study is organized into five chapters. The first Chapter of this study includes the general introduction, background to the study, statement of the problem, objectives of the study, research questions, hypothesis, scope of the study, significance of the study, methodology, organization and the definition of terms.
Chapter two reviews all relevant literatures relatively to the study and concluded with a theoretical framework.
Chapter three is basically research methodology
Chapter four focus on the presentation and analysis
Chapter five includes a summery of the study, conclusion and recommendation based on the finding from the study.
1.10 DEFINITION OF TERMS AND CONCEPTS
Rural Area: a geographical area located outside cities and towns with relatively low population density and small settlements.
Migration: movement of people across a specified boundary for the purpose of establishing a new or semi- permanent residence.
Rural development: the process of improving the quality of life and economic well being of people living in relatively isolated area.
Rural urban migration: is a process of population shift from rural areas to urban areas with attendant increase in proportion of people living in urban areas
Infrastructure: basic physical and organizational structure and facilities needed for the operation of a society or enterprise.
Effect/Impact: outward result of something that is either positive or negative in the society. | CHAPTER 1
INTRODUCTION
1.1 Background of the Study
This research is on Investigating the problems facing housing sector in Nigeria. The dream of each Nigerian citizen is to own his own house (Alhwish, 2010). However, economic Problems began to arise in Nigeria some years ago that have made this dream very difficult to achieve. These problems are complicated, so each specialist in the field of housing and construction holds a unique opinion regarding the main causes of the problems. The main obstacle that consumers face at present is the drastic increase in housing and construction prices in the mega cities of Nigeria. The present study focuses specifically on housing and construction in Abuja.
Nigeria’s main source of revenue is the production of oil. Now that Nigeria’s federal capital territory is receiving a great influx of residents, construction and housing has become the country’s major field in the country’s economy after the oil field Badran (2012).
The growth of this field has come with a sudden rise in the prices of construction and housing, especially in Abuja. This increase has been so problematic that “The prices of construction materials are the next crisis of the Nigerian real estate market” (Alhwish, 2010). The causes of these high prices have yet to be investigated, and they could be numerous and intertwined.
1.2 STATEMENT OF THE PROBLEM
The demand for more construction of all types, coupled with a tight income supply has provided the construction industry with a big challenge to high cost of housing and building construction.This substantial increase has brought disinvestment in the construction industry and added investment risks. One of the main problems of the construction and housing industry may be attributed to the influence of the country’s main industry, oil. Badran (2012) observed, “Expectations of rising prices of building materials are in line with the rise of oil.” As the oil price increases it creates more problems, and these problems, in turn, increase the construction and housing prices even more. Therefore, the relationship between high oil prices and problems in the housing and construction industry is positive (directly proportional).
Other challenges include the high demand for development of public works projects, such as schools, hospitals, and infrastructure, the high demand for housing and construction by Nigerian citizens, The Low supply of housing (Nigeria economic survey, 2012).The manipulation and monopoly of suppliers of cement, steel and other construction materials, Corruption in monitoring government projects, The existence of a black market ,The high inflation of rate, Contractors who are taking projects beyond their capacity, the Speculative purchase and corruption in selling undeveloped lands.
1.3 AIM AND OBJECTIVES
The aim of this study is investigate on the factor that leads to high cost of housing construction in Nigeria.
The objectives of the study are as follows:
- To investigate the critical factors that leads to a drastic increase in housing and construction prices in F.C.T Abuja.
- To determine the problems affecting construction cost in Nigeria.
- To determine the factors that would help government in addressing the major
1.4 RESEARCH QUESTIONS
The following are the research Question that will guide the study:
- What are the main factors that lead to high cost of housing construction in the Federal capital territory, Abuja?
- What are the effects of the factors in housing construction industry?
1.5 SCOPE AND LIMITATION OF THE STUDY
The scope of this research is limited to investigation of essential factors that lead to high cost of housing construction and proffering solutions on how to reduce construction cost in Nigeria.
The study is limited to projects in the F.C.T Abuja Nigeria because there is easy access of information in the Abuja by the researcher.
Target respondents for this study are the principal actors in the construction industry namely: the Client, the Consultant and the Contractor.
The present study is about the current situation in Abuja, Nigeria. In addition, the study is focus only on residential buildings (houses and apartments).
1.6 PURPOSE OF THE STUDY
Nigeria suffers from deep problems that underlie housing and construction
Companies, so this thesis aspires to reveal the main hidden factors of these problems. One of the reasons is population growth. Specifically, the average age in Abuja is a mere 18years. Moreover, Nigeria’s population growth rate is 2.90 % (Central Department of Statistics and Information, 2012). Oil prices also seem to be an enormous factor, because a higher oil price will make everything else cost more, such as transportation of personnel, shipping of materials, manufacturing and so on. Another factor is the underlying economic problems, such as inflation. In addition, government projects, such as subsidized schools and hospitals that help to cover the high population growth, seem to be contributing to higher prices. Likewise, a greater number of projects for public works might be another factor.
The aforementioned factors, among others, have led to a 200% increase in the housing construction cost.
1.7 RESEARCH HYPOTHESES
By examining the literature, the researcher has extracted the factors that could be behind the high cost of housing construction prices. The analysis of these factors has been conducted using a survey. The following factors have been identified and the main hypothesis is that they all contribute to the rise in housing construction cost.
1) Rise in Oil Prices: The increase in world oil demand in the past ten years, nearly 50 percent increase, led to the rapid increase in oil prices.
2) High Demand for Housing Construction: This category includes high demand from, a) Nigeria’s citizens, b) government housing projects and c) government public projects.
3) Low Housing Supply: This category includes the increase of annual demand for housing units and the low supply of housing units.
4) Speculative Purchase of Undeveloped Lands: This category includes corruption in the selling process of undeveloped lands.
5) High Inflation Rate: This category includes the continuous increase in construction materials regarding the inflation factor.
6) Other Factors, such as: the absence of government’s role in monitoring prices, corruption in monitoring government projects, and contractors who take projects beyond their capacity.
1.8 RESEARCH METHODOLOGY
The survey intends to adopt:
1) The methodology of identifying the factors.
2) How to identify the experts who could help complete the survey.
3) The appropriate methods to analyze the data.
In addition, certain factors were evaluated and analyzed to identify the key factors of cost increase in housing and construction industry in Nigeria. The factors that were analyzed include economic, geographic, demographic, social, and other environmental factors to provide accurate and reliable information regarding the cost rise in Nigeria’s construction industry. In the end, some strategies are proposed to help Nigeria’s construction industry reduce its construction and housing costs.
1.9 METHOD OF DATA COLLECTION
Data for the purpose of this study will be collected through primary a source, that is through the use of questionnaires’ as well as secondary sources like: Journals, articles and financial reports.
1.10 METHOD OF DATA ANALYSIS
Frequency and percentages were used for the descriptive data, while mean and standard deviation were use for data analysis. | CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
Housing has a central importance to quality of life with considerable economic, social, cultural and personal significance. Though a country’s national prosperity is usually measured in economic terms, increasing wealth is of diminished value unless all can share its benefits and if the growing wealth is not used to redress growing social deficiencies, one of which is housing (Erguden, 2001). Housing plays a huge role in revitalizing economic growth in any country, with shelter being among key indicators of development (Ireri, 2010). The universal declaration of human rights gives one of the basic human rights as the right to a decent standard of living, central to which is the access to adequate housing (United Nations, The Human Rights – article 25, 1948). Housing as a basic human right demands that urban dwellers should have access to decent housing, defined as one that provides a foundation for, rather than being a barrier to, good physical and mental health, personal development and the fulfillment of life objectives (Seedhouse, 1986). The focus of this research is housing for low income households or what is commonly known as affordable housing. Affordable housing is a term used to describe dwelling units whose total housing costs are deemed "affordable" to those that have a median income. A median income refers to the average pay scale level of the majority people in a population which is often low. Although the term “affordable housing” is often applied to rental housing that is within the financial means of those in the lower income ranges of a geographical area, the concept is applicable to both renters and purchasers in all income ranges. Low-income housing is aimed at individuals without enough income to provide adequate housing for themselves and/or their families. These families are usually unable to purchase a home because they fail to qualify for a mortgage.
Housing is a major problem in Nigeria especially in Makurdi. Millions of people are living in the sprawling slums and also in other informal settlements. Informal settlements and slums in Makurdi have continued to grow at an alarming rate in number as well as in population. Table 1.1 shows the growth in informal settlements in Makurdi between the year 2011 and 2015.
Table 1.1 Growth in Informal Settlements in Makurdi.
| Year |
No. of informal
settlements. |
Population. |
% of urban population. |
| 2011 |
36 |
167,000 |
33 |
| 2012 |
50 |
200,000 |
40 – 50 |
| 2013 |
78 |
789,991 |
55 |
| 2015 |
134 |
1,886,166 |
60 |
Source: Benue State Urban Archives, 2015.
“Informal settlements” is a generic and technical term that seeks to capture the many different features of those settlements that house many of the urban poor in developing countries. The name implies the dominant feature of such settlements is their informality – the fact that they develop outside the existing legal and regulatory framework. The informal settlements are sometimes called “unplanned” or “spontaneous” settlements, which is misleading, since many informal settlements are planned, albeit not in a conventional way, and are not all spontaneous (World Bank, 2003). Demand for housing far surpasses its supply in Nigeria, especially in urban areas that have for long suffered from poor planning, resulting in an increase in informal settlements with poor housing and little infrastructure services. The housing market in Nigeria has over the years faced a huge supply challenge for both government and private sector players. With availability of about 35,000 housing units in urban areas, the deficit remains huge from a growing demand of 150,000 units every year (Terkula, 2010).
Despite some attempts at achieving decent housing for Nigerians, Nigeria has, on the whole, failed to address the dire housing conditions of her population. The situation has been partially alleviated through the activities of the private sector housing developers, who have been a key supplier of housing, particularly in Makurdi (Benue State Urban Archives, 2009). In the year 2010, the private sector commenced construction of housing units worth Kshs. 9.8 billion and registered growth of 6.9% over the previous year (Statistical Abstract, 2008). But despite intensive overall private-sector activity, these private developers have mainly concentrated in the middle and upper segments of the market with relatively little focus on the low-income market. The low income house units currently constitutes less than 30% of the private development portfolio (Economic survey, 2010), yet this is the segment where the need is particularly acute.
In the past, the government took up the role of housing supplier by controlling planning, land allocation, and development and maintaining housing estates. The government has being charged with the responsibility of providing subsidized housing and implementing government housing policies and programmes through tenant purchase, mortgages, rental and rural housing loan schemes. The National Housing Corporation was formed as part of Nigeria’s post colonial housing policy, underscoring the importance of providing decent shelter for all urban workers in the country (Benue State Urban Archives, 2009).
NGO’s have come in to fill in the gap in the housing shortage especially for the low income households. Banks also introduced loans to enable building of infrastures especially houses for rents and this NGO’s and private individuals are now engaged in a low cost housing development project for its members, and the public.
Other NGO’s involved in policy making and assisting developers in this sector include: National Urban Forum (Nigeria), African Ministerial Conference on Housing and Urban Development (AMCHUD). These housing developers focusing on the low income market cannot adequately meet the needs of the market unless more players from the private sector join in.
There are five models of housing development for low income housing initiatives (World Bank, 2011):
- Sites plus development plan and gradual implementation of services – settlements are planned and surveyed, lots allocated and occupied, and infrastructure gradually implemented.
- Sites and services – mass production of serviced sites in large schemes for resettlement of urban squatters, usually in peripheral land in city outskirts and with basic starter housing units.
- Comprehensive upgrading of existing settlements – wide range of improvements involving different types of infrastructure according to predefined area plan; this is integrated upgrading but undertaken in one go, usually in a two year time frame.
- Development of new housing in new settlement – new infrastructure and housing units are built on empty land; or new housing units on available land in existing serviced areas.
- Redevelopment of degraded existing structures – agreement reached with building landlords for building renovation.
The Rwanda government for example has adopted the model of developing new housing settlements for her population. They have initiated the Imidugudu project. Imidugudu is an 80 household settlement that was set up in 2002, to accommodate refugees who had returned mainly from Burundi. They are grouped settlements modeled along the lines of Israel’s Kibbutz. The model is being replicated in the whole of Rwanda to accommodate her population decently (Rwanda Report, 2010).
1.2 STATEMENT OF THE PROBLEM
Provision of adequate, affordable and decent housing for low income households is clearly in short supply. The players in this industry are too few and there seems to be a minimal interest of other private sector housing developers to provide low income housing units. These private sector developers as by their success in the middle and high income housing markets, implies that they may have the capacity and skill set to supply the low-income housing required to alleviate, at least partly, the housing shortfall in the country (Benue State Urban Archives, 2009). But they have shied away from the low income market mainly because the profitability margins are lower as compared to housing developments for the other markets.
There are also many other factors affecting the supply of housing from private sector housing developers prominent of which is the cost of production and the opportunity cost to the developer’s finite funds in either providing middle income housing or high income segment housing or low income housing. The developers have to consider the rate of return to their investment and how fast they’ll realize this. But these are not the only factors affecting the supply of low income housing and the other factors should also be put into consideration. Provision of low cost housing to the increasing number of lower and middle income classes in the country has also been hugely affected by the cost of land and inadequate infrastructure (Terkula, 2010).
The problem that this research seeks to address is that of the shortage in housing supply for low income households and the challenges faced by both existing and potential developers in this market. Issues to be addressed in this research study include the factors affecting low income housing supply, the motivating factor to existing developers in venturing into this market and the housing models they have adopted in their projects.
1.3 RESEARCH OBJECTIVES
The purpose of this study is to research on the factors affecting housing development for the low income market. It seeks to achieve the following objectives:
- To identify the motivation behind existent players in the industry whether profit, social or other.
- To analyze the housing model that has been adopted here in Nigeria by existing housing developers for the low income market.
- To examine the challenges faced by housing developers in the low income market and hindrances to their efforts.
1.4 LIMITATIONS OF THE STUDY
- The study involved the collection of primary data. There was a low response rate that is related to the collection of primary data. Some of the respondents did not bother to fill in the questionnaire within the specified period and claimed to be too busy to take time and participate.
- There lacked a credible listing which is comprehensive and up to date of property developers whose focus is the low income housing market.
- Since the measurement scale of the data collected was ordinal it did not lend itself to more robust methods of data analysis.
1.5 RESEARCH QUESTIONS
The research aims to answer the following key questions:
- What is the motivation behind existing players of housing development in the low income market?
- What are the housing development models that have been adopted in Nigeria for affordable housing projects?
- What are the challenges faced by the developers in the low income housing market?
1.6 HYPOTHESES
In order to enable the researcher assess the effect of rural development in combating rural urban migration in Nigeria, the following hypotheses will be tested:
- Ho: Housing for the poor, does not have any significant benefits to the poor, when built in Nigeria.
HA: Housing for the poor has significant benefits to the poor in Nigeria.
1.7 SIGNIFICANCE OF THE STUDY
The study will aid the government agencies in charge of putting up housing for the masses, especially for civil servants at various tiers of government, this will accelerate development in rural areas and urban areas .
This research study will also help reveal the extent of the problem to relevant stakeholders so that they can rise to the occasion and put in measures to the occasion and put in measures to develop the housing for the poor.
Finally, this research work will add to the existing body of knowledge on the importance of housing for the poor in Nigeria.
1.8 JUSTIFICATION AND SCOPE OF STUDY
This study will expose the challenges of housing development for the poor in Nigeria, with special reference to the actual causes of this problems, measures put in place by relevant stakeholders to combat the challenges in the study area are also looked into.
Therefore, it is important that housing for the poor should be a great focus for every government.
1.9 RESEARCH METHODOLOOGY
The study use two approach that have survey research methodology and the formation are;
- Content analysis for secondary data collection
- Survey research method for primary data collection.
1.10 DEFINITION OF TERMS AND CONCEPTS
Infrastructure: basic physical and organizational structure and facilities needed for the operation of a society or enterprise.
Challenges: The problems that are evident to a development .
Housing: The provision of accommodations for human inhabitation | CHAPTER ONE 1.0    INTRODUCTION 1.1    BACKGROUND OF THE STUDY Shelter is a basic necessity in life. An individual can satisfy this need by either occupying his own (owner’s occupier) property or renting another person’s property. In our traditional society, the need for shelter is mainly met through the first alternative that is owner occupation. With the emergency of urban centers’, the situation has changed. Many people are no longer about to own property because of the difficulty in the acquisition of land and the high cost of building construction. Therefore, they are left with the alternative of renting other people’s properties in order to satisfy their need for shelter. Consequently two classes of urban resident have emerged, the landlord and the tenant under this arrangement the tenant pays to the landlord a certain amount of money in consideration for his use of the landlord’s house. This amount is popularly known as rent. During the civil war the Nigeria that is 1966 to 1970 many landed properties in the urban areas of the former Eastern Region of Nigeria, including Enugu, were destroyed. Consequently, there was a sharp decline in the supply of landed properties after the war. Furthermore, the post – civil war period witnessed an unprecedented number of the rural population trooping into the urban centres due to the conspicuous prosperity brought about in the urban area by the oil boom. This resulted  to  high  demand  for  the  existing  limited  supply  of  landed  properties. Consequent upon these, rent for landed properties increased considerably. This trend has continued with the effect that “the average worker is paying 30% to 40% of his salary as rent†(Oshadiya, 1985). Thus the increase in rents on the properties has led to the variation of rent on properties. In urban area due to location advantage (for example prime location) which some properties offer above others for commercial and residential uses, rent tend to very on account of the type of use which a property can offer. 1.2    STATEMENT OF PROBLEM Location of economic properties has been a difficult concept to understand. Although the primary objective of commercial properties is the derivation of financial gains, while that of residential properties is for habitation, shelter and comfort, the demand for land is a reflection of the profitability or utility derivable from its use. The greater the benefit to be obtained from a particular use, the higher the rent that the user will be willing to pay for it. There appear to be wide ranging differences in the levels of rent passing on residential and commercial properties in Enugu and Nigeria generally. This research is seeking among other things to find out the causes of rental variation in commercial and residential properties in Nigeria, Ogui New Layout and G.R.A as a case study. 1.3    AIM AND OBJECTIVES OF THE STUDY The main aim of this research is to examine the reasons for rental variation in commercial and residential properties with a view to provide tool to be used in catching issues related to rent on these properties in Enugu and Nigeria generally. To achieve the standard goal, the following objectives are to be pursued; - i) To identify the level of rents for commercial and residential properties in the study
- ii) To ascertain and examine the factors influencing the rents being commanded by these properties.
iii)    To determine or examine whether the income of prospective buyers/tenants affect their decision to acquire properties. - iv) To ascertain  if  there  is  disparity  in  rental  values  for  residential  and commercial properties in the study
- v) To find  out  the  rate  of  demand  between  commercial  and  residential properties?
1.4Â Â Â RESEARCH QUESTIONS - i. What is the level of rent for commercial and residential properties in Ogui
New Layout and G.R.A respectively between years 2002-2004? - ii. What are the factors influencing rents passing on those commercial and residential properties.
iii.    Does the income of prospective buyers/tenants affect their decision to acquire properties? - iv. Is there any disparity in the rental value or rent passing on residential and commercial properties in the study area?
- v. Amongst properties put for Commercial and Residential use, which is on a higher rate of demand?
1.5Â Â Â Â Â SIGNIFICANCE OF THE STUDY The finding of this study will be of benefit to the following groups; Firstly, tenants who are charged rents based on different reasons, especially when the properties are of the same nature (physically). This will again enable the investors not only to understand how occupier thinks, but also why and the things they consider before acquiring properties for certain uses. Secondly, the generality of the public can now understand the reason why the rents being commanded by these properties have to differ. Lastly, this research work will help to determine the factors influencing, commercial and residential properties which is an essential pre-requisite to successful development as well as stimulating interest in the students to carryout out further research on the topic. 1.6Â Â Â Â SCOPE OF THE STUDY The study covers a period of three years (2002 to 2004) and it is restricted to selected properties (Residential and commercial) comprising blocks of flat and tenements in Ogui New Layout and G.R.A, Enugu. 1.7Â Â Â Â LIMITATIONS OF THE STUDY Expectedly, this work met with some hindrances during the stage of data collection. The issue of rent passing on a property (residential or commercial) is usually regarded as classified information, which is not easily disclosed to people particularly researchers. This was largely suspected to be the reason why some Estate surveyors, property owners, tenants, Estate firms, property companies and even Estate agents who were approached through oral interviews, discussions and visitations found it rather difficult to reveal essential information despite every explanation that the exercise is strictly for academic purposes, a good number of them, still nursed the fear that it may be for property rating and taxation purposes. | CHAPTER ONE
INTRODUCTION
Right from time, food, clothing and shelter have been the three most basic requirement of man of all these three requirements food and clothing are the two, which influence man’s life more than the house in which he seeks shelter, security comfort and dignity. It is in fact where man starts and ends his dairy activities.
Housing is mainly the most important factors which determine the nature and form of urban settlements and the quality of human existence is directly related to it:
Housing is defined by Oyeyipo (1980) to mean, the provision of any form of structure, erection of building which is man made for the purpose of accommodating a person or person by taking housing to mean only shelter the definition appears defective as it ignores all those infrastructure facilities which housing brings along with it.
The world health organization committee on housing defines it as the physical structure than uses for shelter including equipment and devices needed for physical and social well being of the occupant 2 such equipment and devices include utilities and services like electricity, water supply, good access roads sewage and refuse damp facilities.
Makurdi metropolis is occupied mainly by government workers with low income. This position makes it difficult for them to afford the high cost of developing housing estates for their use. They therefore resort to borrowing from both formal and informal sources in other to find money for housing development and also
The question then Is the existing financial investors in Makurdi metropolis enough to satisfy the demand for residential housing loans of these low income earner residing in Makurdi metropolis? If not how can be situation be improved.
This research work therefore intends to the existing financial structure of Makurdi metropolis with a view to finding out how efficient it has been performing and proposing how the system could be improved.
BACK GROUND OF STUDY
Housing estates is a fundamental and essential features in the urban environment. Adequate provision of housing estates have a great deal of positive impact on both the economic and social life of the urban citizens and its inadequacy has the reverse effect.
The shortage of housing estate is one of the major problems facing the urban centres especially in the developing countries. Thus could be attributed estate development involves large amount of money, which is usually not within the capability of most urban dwellers particularly the medium and low income groups, the rate of housing estate construction often tend to be small and generally depend on financial resources.
This situation of financial scarcity is made worse by the rigid attitude of financial investors towards lending for housing development. Their system of granting loan make it very difficult for the medium and low income groups to benefit from the available facility. The bulk of the mortgage loans go the upper class.
This research work intend to look into the existing finance structure in Benue state urban, to find out if it is adequate to satisfy the housing needs of inhabitants of Makurdi.
The objective of this study is to examine the housing estate finance situation of Makurdi metropolis with a view to
- Assessing the existing financial investors
- Ways of improving it
- Providing decision makers
- With a decision making tool
1.4. SIGNIFICANCE OF STUDY
A study on housing estate finance is very financial investors of housing estate finance is valuable and could be utilized to achieve certain academic objectives. It can enlighten both the government, students and researchers on the importance of housing estate finance.
The general result obtained from this study is educative, informative and broader the awareness of the public on current sources of housing estate finance in the estate.
Estate surveyors and valuers could apply the result of this research work in their future housing estate finance planning and their advisory role to the public.
The study would be utilized in making new housing estate policies and ensuring their implementation. This is because any housing policy that does not place priority on source of finance would ever remain incomplete. It will also serve as a basic for the allocation of finance for housing estate programmers.
- PLIMITATIONS OF THE STUDY
Securing data for this study was not an easy task. This is due to the nature of the study. Some respondent collected questionnaires and did not return it back.
Some were of the opinion that the research would not offer, then any increase in the or salary, while some argued that the information might be used for other purpose. Other than academic as claimed by the researcher.
Other problems encounter by the researcher during the course of study includes, not having asset into the research area, the officers to help the researcher for the there is were no to be found.
The major constraints encountered during the course of this project is lack of finance which made me to restrict the study of certain areas.
Again time factor is a limitation to this study because I shared my time between my project and other academic works.
Finally the constraint of scarcity of relevant text books on the topic. I will like to use this opportunity to urge the professional in this area to write more books in order to help the younger generation.
Certain terms are used in this work which their definitions are relevant for easy understanding for the study.
Housing estate development is a group of houses in an area of land, built only for dwelling purpose and not for commercial or industrial purpose it is.
It is generally constructed for residence. It has the attributes of living shelter, security, comfort privacy investment and personal identity.
Financial investors: Is defined as informational or formal act of providing money "n this sense financial planning, the estimating of cash receipt and disbursement.
Finance may be defined as the management function of managing the flow of funds in an organization. It is also seen as the provision of money or means of payment at the time it is wanted, Aniagolu (1997).
Finance as defined by western dictionary is the science of managing money here it concerns the control of money by individuals.
3 DEVELOPMENT
The term development is mostly applied in relation of land valuers and estate surveyors sees it as a way of embarking on constructional work that will amount or give rise to utilization of land with its improvement or re-improvement of an already utilized one. According to Todaro (19)
Development implies the multi-dimensional process involving charges in structures, attitude and investorss as well as the accelerations of economic growth, the reduction of inequality and eradication if absolute property.
Development on the other hand has many definition. The British town and country planning. Act of 1947 defined development Inspection 12 subsection 2 as the carrying out of building engineering mining or other operation in, or, under land or the making of any building or other lands Similarly, the Nigeria land use decree of 1978 in section 50 subsection L defined development land to main land where there exist any physical improvement in the nature of roads development services, water, electricity, drainage building, structure or such improvement that may enhance the value of the land has industrial agricultural or residential purpose.
In a more general sense development may be defined in socio-economic terms as a progress work-transformation of society or as a conscious action to effect large scale change in a designed direction utilizing the centralized or at least in a co-ordinate way the resources available to give political unit. |
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