INFLUENCE OF SLUM ON RESIDENTS’ SATISFACTION AND WILLINGNESS TO PAY FOR PROPERTIES IN LOKONGOMA PHASE I LOKOJA

INFLUENCE OF SLUM ON RESIDENTS’ SATISFACTION AND WILLINGNESS TO PAY FOR PROPERTIES IN LOKONGOMA PHASE I LOKOJA

ABSTRACT

This study examines the Influence Of Slum On Resident’s Satisfaction And Willingness To Pay For Properties In Lokongoma Phase I Lokoja. To achieve the aim the research identify the types of residential properties, identify the causes of slum and examine the effect of slums on resident’s satisfaction and willingness to pay for residential property in Lokongoma. The research adopted the survey design which offers the opportunity to gather information through the use of questionnaires, personal interview and observation. A structured questionnaire was administered to the respondents which comprise the residents of Lokongoma Phase I and estate professionals.  Data were presented and analysed using simple statistical tools. The study revealed that slums have significant impact on resident’s satisfaction and willingness to pay for residential property in the study area as it is being inhabited by low income earners, squatters, apprentices, students and daily paid labors etc. Finally, it is recommended that the government should redevelop the area, by relocating the inhabitants and then build low cost houses for the inhabitants. Also for the property owners, a low interest or non interest credits should be provided for them in order to encourage them to renovate their properties.

CHAPTER ONE

1.0                                                     INTRODUCTION

1.1       Background of the Study

Most housing decay and deterioration comes in various forms and their existence is more evident in densely populated parts of the city. Some of the characteristics of slum include inadequate and deficient facilities, obsolete buildings, filthy environment, etc. Much concern was been shown about the problems of the slum areas particularly on the level of decay exhibited by such areas and the plight of the low income households which dwell in them, this put lives and health of the residents in danger.

Slums are home to the poorest of urban populations in Africa. The houses inhabited by slum dwellers are mostly decrepit, overcrowded, in neighbourhoods that are prone to flooding and beset with poor sanitation and shortage of potable water. Urbanization refers to specific changes in the structure and distribution of urban population as well as in size and character of a settlement. Slums are easily formed in areas experiencing rapid urbanisation without commensurate increase in the provision and maintenance of housing and infrastructure. Slums have been conceptualized as a group of buildings or an area characterized by overcrowding, deterioration, insanitary conditions, or absence of basic and essential facilities like potable water, drainage system, schools, health facilities, recreational grounds, post office, among others. Slums generate spontaneously and are in some cases, a direct result of the prevalence of poverty experienced by the inhabitants of cities. Slums, which are regarded as an element of urban decay, also result from congestion in overcrowded cities where poor immigrants seek to settle for just any available accommodation irrespective of quality (Simon. 2010).

The overwhelming negatives notwithstanding, there are some positive aspects to slums. In recent years, some environmentalists and organizations such as the United Nations Population Fund suggested that despite the poor living conditions, slums are positive both environmentally and socially. Because slums are characterized by very high density of housing, its environmental impact is smaller than that of dispersed rural communities. Furthermore, the fertility rate of new slum dwellers is below the replacement rate; this mitigates dangers associated with overpopulation that results from manpower-intensive subsistence agriculture, and frees up arable land for the nature, or more efficient industrialized agriculture. Slum dwellers also appear to have vastly better opportunities for getting jobs, starting small businesses and climbing out of poverty than rural inhabitants (Brand, 2010).

Nigeria is ranked as one of the countries with high slum prevalence (Arima, 2001). The proliferation of shanty dwellings, squatter settlements and slums in most of our cities in Nigeria and other less developed nations of the world is attributed to a chain of factors. Of course, such factors are closely associated with the low level of socio-economic and cultural lifestyles of the inhabitants (Omole, 2003). With a focus on Nigeria, though drawing examples from some countries in Asia and Africa, this paper examines the phenomenon of slums and approaches to its management. A key component of the paper is how architects can contribute significantly to slum prevention and control via the professional and community services media  (Omole, 2003)..

The concept of residential property value is a term that is associated with real estate investment. The main motive for these types of investment is for creating financial optimum returns on both land and property. There exist numerous factors limiting this a type of investment among which is the growth of numerous slums around our planned cities. According to Okoye (1977), slums area are characterized by separate discrete structures and are mainly occupied by the lowest income group in the major urban centers in Nigeria which are growing in population and size in a haphazard manner over the years. The over grown and over sized cities are continuously faced with enormous problems of housing, water supply, health and education as a result of planning authority failing to take the necessary steps to control developments according to new plans.

Simon (2010) defines slums as a group of building or an area characterized by overcrowding, deterioration, unsanitary or absence of amenities or facilities such as portable water, drainage system, schools, health facilities, recreational ground, access road etc. these conditions endangers the health, safety and moral of its inhabitants that also affects the value of land negatively. Several factors the satisfaction of residents and willingness to pay for residential property with diverse environment features which could be cultural, ethnic, economic, health or from the perspective of the type of residential units, its features, neighborhood, etc. (Pettit 2004). Slums in residential property area contribute negatively to resident’s satisfaction and willingness to for such property, this contribute mostly to while such environment are inhabited by the low income earners or the poor in the society who have no better option for a healthier and good residential property.

1.2       Statement of the Problem

The proliferation of slums in Nigeria has been over the years a matter of great concern. As cited by (Olotuah, 2016) 75% of the dwelling units in urban centres in Nigeria are substandard and the dwellings sited in slums. The inadequacy of the quality of most urban housing stems mainly from the poor physical state of the buildings. They are often unsafe and insecure and do not provide adequate shelter from the elements of weather. The environment in which the buildings are located is squalid in most cases, and this generally leads to slum conditions.  Furthermore, the fertility rate of new slum dwellers is below the replacement rate; this mitigates dangers associated with overpopulation that results from manpower-intensive subsistence agriculture, and frees up arable land for the nature, or more efficient industrialized agriculture. Slums is an area that is characterized by overcrowded deteriorating environmental aesthetics, absence of infrastructure and facilities such as portable water, drainage system, schools, health facilities, and recreational ground e.t.c. Lokongoma in Lokoja is a residential unit that has a semblance of these characteristics. The residential properties are discrete structures that are occupied by low income group, residential occupancy rate and overcrowded environment, with poor accessibility. It is against this problem that this study seeks to examine the influence of slum on residents’ satisfaction and willingness to pay for property in the study area.

1.3       Aim and Objectives

The aim of this project is to examine the influence of slum on resident’s satisfaction and willingness to pay for property in Lokongoma Phase I Lokoja.

To achieve this aim, the following objectives are pursued:

1. To identify the types of residential properties in the study area
2. To identify the causes of slum in the study area
3. To examine the effect of slums on resident’s satisfaction and willingness to pay for residential property in the study area.

1.4       Research Questions

To achieve the stated objectives the following research questions will guide the researcher:

1. What are the types of residential properties in the study area?
2. What are the causes of slum in the study area?
3. What are the effects of slums on resident’s satisfaction and willingness to pay for accommodation in the area?

1.5       Significance of the Study

This research work is an attempt to examine the influence of slum on resident’s satisfaction and willingness to pay for property with a view to proffer useful recommendations. The study is expected to form the basis for further research work on the effect of slum on residential property value. The research work will be of immense benefit to the following professionals or persons, the Estate Surveyors and Valuers who are mainly concerned with the development and management of all kinds of landed properties.

This project, in addition, will enlighten the general public and even the government on the influence of slum on residents’ satisfaction and willingness to pay for property.

1.6       Scope and Limitations

This study will covers the area of Lokongoma phase I of Lokoja, the state capital of Kogi State with a particular reference to the influence of slums on the satisfaction of residents and willingness to pay for property.

1.7       Definition of Terms

1. Slum: Slum according to Simon (2010) defines slums as a group of building or an area characterized by overcrowding, deterioration, un-sanity or absence of amenities or facilities such as portable water, drainage system, schools, health facilities, recreational ground, access road e.t.c. This condition endangers the health, safety and moral of its inhabitants that also affects the value of land negatively.

According to George (1999), slum can be defined as a group of buildings, or an area characterized by over-crowding and separate discrete structure and mainly occupies by the lowest income group.

• Blight: A Blight area may be defined as an area where existing structure, facilities and utilities are substantially impaired or arrested, and it can also be referred to as physical deterioration of building and properties.
• Infrastructure: It can be defined as the basic physical and organization structure needed for the operation of a society or enterprise e.g. water supply, road , power grids e.t.c
• Slum Upgrading: This means raising the status avidity, value or condition of a neighborhood or aspects of the city centre or any unwholesome and unsanitary part of an urban area.
• Residential: This can be defined as block of flats or bungalow, duplex e.t.c in an area of a town suitable for living and consisting of houses rather than factories or offices.
• Property: Property in a technical legal term means “a unit or object whether tangible or intangible upon which interest is created and over which control or right of ownership is exercised by the owner of interest.
• Rental Value: Is the maximum amount which a property will let in the open market at any giving time.
•  Values: The term value means the worth of something or how much something is worth in money or other goods for which it can be exchanged and willingness to pay for property.

1.8       Study Area

Lokoja the capital of Kogi state came into existence in 1991. The territory covers a total area of approximately 6,000 square kilometres, while the city proper is to cover a total land area of 150 square kilometres. The plan of the city was designed by the International Planning Associates, (IPA) and accepted/approved by government in 1992.

Construction work started in the early 1990s, while the seat of the state government finally shifted from Kwara to Lokoja in 1991. Efficient control, administration and management of the entire Lokoja landmass the key to successful implementation is the Lokoja master plan and the orderly development of a city is envisaged by the master plan itself. This cannot be achieved successfully without plan itself. This cannot be achieved successfully without a reliable and up to date cadastral and land records.

            LOCATION

Lokoja town lies at latitude 90 North and longitude of 33⁰ east on a geological base of undifferentiated basement complex. The north – eastern part of the town is more or less continuous steep out of granite and large water surrounding the area which limit an urban development in that direction and also shaping the road network.

CLIMATE AND VEGETATION

The climate is favourable to agricultural farming, fish farming residential occupation due to the conducive weather condition. The vegetation in the town is at high standard because there is the provision of irrigation water to the farmer and routine supply of fertilizer by the state government to the farmers.

POPULATION 

The population of the town was put at 10,872 in 1952 and 59,000 in 1963, in 1979, it was guiles at 65,000. It doubles itself every nine years. That is at the beginning of 1989 the were 13,000. The 1991 provisional census figure for Lokoja Local government of which Lokoja was the only settlement.By the end of 1998, the population of the town was 260,000 and it was estimated that by the end of the year 2006, it will be 520,000 people in the area in question (Shola, 2010).

INFRASTRUCTURE BASE

The are so may public services requires in a modern civilized community, especially in my case study area Lokoja, Kogi state’s the following may be listed immediately as being the most crucial ones found in – that area of study

1. Severs
2. Road drainage and construction
3. Culverts
4. Electricity ducts, cables and wires
5. Street lighting cables and posts
6. Telecommunications and postal equipment, ducts cables, posts and kiosks
7. Road safety equipment, pedestrian refuges and crossings, traffic signals and. their attendant underground ducts and cables
8. Transport services, bus routes and stops
9. Refuse disposal

COMMERCIAL ACTIVITIES

The commercial activities found in the residential area of Lokoja are as follows:

1. Location of filling stations
2. Supermarkets
3. Restaurant and snack bars
4. Hotels
5. Shops and stores
6. Market
7. Banks

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