ANALYSIS OF THE IMPACT OF PLANNING CONTROL ON RESIDENTIAL PROPERTY VALUE IN NASARAWA STATE

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ANALYSIS OF THE IMPACT OF PLANNING CONTROL ON RESIDENTIAL PROPERTY VALUE IN NASARAWA STATE

(A CASE STUDY OF NASARAWA TOWN)

ABSTRACT

This project analyze the impact of planning control on residential property value in Nasarawa state with the aim to identify possible problem and find possible solution. In the course of carrying this research the primary data was collected through questionnaire and oral interview with the Nasarawa State Urban Development Board and some real estate property developer in the Nasarawa town. 100 Questionnaire was administered which 80 was collected back upon which the data presentation and analysis depends on. The instrument used in analyzing the data was purposive and tabular form. The research shows that developer and the development control officials tend to accused each other of complicity in development of residential property process in Nasarawa. the researcher therefore recommend that there is urgent need for effective force and good communication skill and rapid awareness aiming at creating adequate effectiveness on physical environmental issues in Nasarawa town and Nasarawa State at large.

CHAPTER ONE

1.0       INTRODUCTION

1.1       BACKGROUND OF THE STUDY

Planning control forms an integral part of the planning practice. It is the basic means by which the state intervenes to regulate the use and development of land in order to implement local and national planning policies. Most significantly it is the part of the planning process in which members of the public come into contact with local planning authorities (Ogunsesan, 2018).

Today, planning control comes under considerable criticism about the nature of decisions taken, and the ways in which they are taken. One hears complaints that sluggishness discourages development; that its complexity is excessively costly; And that its nature stifles initiative. (Okpala, 2018). Development control is not appreciated by the general public mainly because of the restrictions it imposes on the aims and aspiration of the developers.

Originally, the rationale for the introduction of state control on private development was to achieve objectives of safety and better health in order to create an improved environment for the benefit of the community. However, as the role of the state expanded and the extent of its intervention increased the definition of the ‘environment’ subject to planning control has changed. From being wholly concerned with the physical form and content of development it now embraces the social and economic consequences of development. As a result, development control has been used to implement planning strategies for different purposes; for example to minimize the negative effect of urban growth, to check the menace of market forces and ensure social equity, as well as to support economic growth (Uthman, 2019).

Therefore, planning control is a tool, sometimes used to achieve its original objectives of safety and better health; Sometimes to implement planning strategies; and in some cases to do both. Although it continues to regulate the use of land, while planning strategies have widened in scope, development control has proved incapable of meeting additional demands. Since development control is used to implement planning policies, which are normally reflected in planning legislation, physical development plans and other associated planning documents, the failure to achieve development planning objectives may be due to the pursuit of inappropriate policies, to the application of inflexible standards and regulations, or both, which is why Olayiwola  et al (2016), comment that development control practices are inappropriate, ineffective and inequitable in their operation in most Third World cities.They argue that developing countries stand to benefit little from the transplanting of regulations that have evolved in different social soils with differing political and economic climates. Another criticism is that planning agencies in developing countries lack the power and resources to perform efficient and effective development control (Ogundele, Ayo and Aigbe, 2021).

Planning control is seen as a mechanism to maintain standards. It is process laid down by legislation, which regulates the development of land and building. It is the professional activity carried out by town planners in order to ensure compliance with the approved master plan thereby ensuring orderliness(Ogundele, Ayo and Aigbe, 2021)..

In line with the above definition, planning control actually regulates any building or rebuilding operations in, on and under the land. It also ensures an orderly growth of settlements by stipulating adequate standards for all aspects of land-use through the provision of adequate lighting, ventilation, open spaces and other socio-cultural facilities that make life worth living. The power to grant or refuse as well as attach conditions to permissions for development to take place gives the public agencies the big teeth.

Ogunsesan (2004) opined that planning control is the “front line‟ of planning and the part, which affects the general public most. There is a direction in the exercise of development control on developers. The direction according to Ogunsesan (2004) is the objectives of development control, which include: the protection and enhancement of the built environment; the coordination of both public and private investments in land and property to ensure that land is efficiently used; and the control of pollution.  In development control process, time is a very important factor. There are two types of time factors in the development control process as pointed out by Faludi (2019): “internal and external time lag”. The internal time lag as he explained is the time it takes to act upon information received, while the external time lag, he explains as the time it takes for the action to be effected.

Planning control is carried out by planning authorities that have legal powers conferred on them to ensure that development is secured. The authorities according to Faludi (2019) are empowered to: plan, promote and secure the physical development and environmental improvement by economic; as financial developers they can initiate planning schemes and develop the area wholly or partly‟. Fagbohun(2017) is of the view that „though the planning authorities are empowered legally to carry out their duties, it may still be restricted. Its effectiveness reduced by lack of political backing and support from the top echelon of government functionaries‟.

Furthermore, planning control is seen as a powerful implementation weapon in the planning armory. Positive encouragement is given to developers to compel them to willingly develop their land with due respect to the requirement of the planning authorities. Public enlightenment is usually embarked upon which tend to encourage the public to want some sort of control over physical development.  Communication is a vital tool necessary for development control to succeed. An effective and efficient communication ensures control development with people and not for people‟; for if people are carried along in development control process, the authority will be able to guide development with ease and achieve their set objectives of a well-planned built-up area with good road network, building set-backs, ventilation, lighting and pollution free environment. On the other hand, if the members of the public are not informed, they may not accept the idea of control, with feelings that since they owned the land, they can as well carry out development the way they want and at their own time without due consideration.

1.2       Statement of Research Problem 

Rural- urban migration has caused congestion in the urban areas and left the towns and cities sprawling endlessly into the countryside with dire consequences for the provision of essential urban infrastructure. That is, the rate of expansion of each of old and  newly emerging town led to the emergence of uncoordinated land-uses, winding road network, traffic congestion, uncoordinated provision and distribution of socio-physical infrastructure, uncollected waste and the like, amongst others with great impact on the socio-economic well being of the inhabitants (Aluko, 2020). All these are resultant effects of uncontrolled development in both rural and urban settlements in Nigeria.

The rapid growth of our settlements, particularly urban areas need to be controlled to prevent chaotic and haphazard physical growth and development, which certainly takes place in the absence of any development control measure. However, some of the rationales for effective development control are the achievement of balanced, coordinated and good development of the environment; it ensures structural soundness and the adequate provision of necessary utilities, services and facilities for the proposed buildings; protection and the development of the environment so that the activities of men do not have adverse effects on it. This uncontrolled development has led to the environmental situation as presently witnessed in some squatter settlements of Nasarawa and other big town and cities in Nigeria. It is against this background that this study seek to analyze the impact of planning control on residential property value in Nasarawa state with particular reference to Nasarawa town.

1.3       Aim and Objectives of the Study

The aim of this project is to analyze the impact of planning control on residential property value in Nasarawa State

To achieve the aim above the following objectives were pursued

1. To examine the effectiveness of planning control in Nasarawa town
2. To identify the functions of planning control
3. To evaluate the impact of the planning control on residential property value in Nasarawa
4. To identify the possible problems militating the effective and efficient planning control in the study area.

1.4       Research Questions

1. How effective is planning control in Nasarawa town?
2. What are the functions of planning control?
3. What impact has planning control made to residential property value in Nasarawa?
4. What are the possible problems militating the effective and efficient planning control in the study area?

1.5       Significance of the Study

This project will help to overcome the challenges that are currently facing in planning and development authority in Nasarawa state by the time this project is completed as it will serve as an eye opener on relevance of planning control towards effective and efficient development of urban and rural areas in Nigeria.

The result of this study will enlighten property developers and investors on the need to comply with development control authority as development control generally impact positively on residential property value.

Students and other researchers will find this research useful as it will serve as reference to the department of estate management and valuation.

1.6       Scope and Limitations of the Study

There are different types of property development, this project mainly concern on the impact of development control on residential property development in Abuja.

The following are the limitations of the study

• Lack of proper response from the developer’s point of view.
• The financial aspect was a bit difficult.
• There was no previous work available to reference with.
• And the absence of the group leader makes the data analysis slow.

1.8     DEFINITION & OPERATIONAL OF TERMS

• Development:  used here means an event constituting a new stage in a changing situation i.e. process development or being developed.
  • Control:  implies the power to influence or checking direct result of a survey or experiment of an intelligence of organization.
  • Impact: these means to have a strong effect on something either positive or negative.
  • Residential: means involving living at the place where you are working, studying or being looked after.
  • Property: a thing or things belonging to someone or possessions collectively i.e. an attribute, quality or characteristics of something.

1.9       HISTORICAL BACKGROUND OF THE STUDY

Nasarawa state was created 1^st October 1996 by the general Abacha government regime, it is a state in north central Nigeria, Lafia is the state capital, the was created out of the following neighboring state of plateau, located in north-central region of Nigeria, it is bordered on the west by the federal capital territory, then north by Kaduna, then south by Benue and Kogi and also the east Plateau and Taraba states.

Nasarawa state has diverse range of ethnic group indigenous to the state.

According to 2006 census a little less than 2million populated people reside in the state.

The state has 13 local governments namely:

1. Toto,
2. Obi,
3. NasarawaEggon
4. Nasarawa,
5. Lafia,
6. Kokona,
7. Keffi,
8. Doma,
9. Keana,
10. Karu,
11.  Awe
12. Akwanga
13. Wamba.

And 29 languages spoken, Nasarawa is home to many tertiary institutions namely:

Federal University Lafia

 Federal Polytechnic Nasarawa

Nasarawa State University Keffi

State federal college of education.

Nasarawa state polytechnic etc

Economic activities: of the state are mainly Agriculture, cash crops such as yam, cassava, Andegusi(melon). Production of mineral such as salt is also another major economic activity in the state; Nasarawa produces a large proportion of the salt and bauxite consumed in the country.

Geography issue:  Nasarawa state is bounded in the north Kaduna state, in the west by the proximity Abuja Federal Capital Territory in the south by Kogi and Benue states and in the east by Taraba and Plateau states. A network of roads exist within the state linking all the rural areas and major town the Nigeria Rail ways Corporation (NRC) operate train service from kuru, Gombe, and Maiduguri.

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THE IMPACT OF INDUSTRIAL PROPERTY LOCATION ON RESIDENTIAL PROPERTY VALUES IN IBADAN

 

THE IMPACT OF INDUSTRIAL PROPERTY LOCATION ON RESIDENTIAL PROPERTY VALUES IN IBADAN
 

CHAPTER ONE

INTRODUCTION

1.1       Background to the Study

            Industrial revolution and subsequent growth of rapid industrialisation have caused serious threats to sustainable development of both developed and developing countries. While modem industries extracted various natural resources, other raw materials and energy from the environment to produce material goods and services, such uses and production processes have resulted in large scale emissions of wastes into the environment causing severe threats to traditional agrarian practices, suppressing the values of rural and urban property and reducing the quality of human life (Baby, 2003). Although most of the developed countries had responded to this social menace by developing a variety of technological, economic and legal regimes for regulating the polluting behaviour of firms, the developing countries have not attained sufficient progress in regulating industrial pollution and its influences on their economy and society due to lack of technological alternatives, failures of markets, institutions, government policies, mass poverty and illiteracy.

A residential area is a land use in which housing predominates, as opposed to industrial and commercial areas.  These include single-family housing, multi-family residential, or mobile homes (Kilpatrick, 1999). Zoning for residential use may permit some services or work opportunities or may totally exclude business and industry. It may permit high density land use or only permit low density uses. Residential zoning usually includes a smaller FAR (Floor Area Ratio) than business, commercial or industrial/manufacturing zoning. The area may be large or small (Knight, 2015). Residential areas are zoned for living and any industrial activities are not expected to operate in these areas so as to avoid nuisance. Industrial properties are properties used for industrial purposes. Types of industrial property include factory-office multiuse property; factory -warehouse multiuse property; heavy manufacturing buildings; industrial parks; light manufacturing buildings; and research and development parks (Barrons, 2015). The random development of small scale industrial and workshop activities in residential areas of Arab municipalities in Israelis causes environmental nuisances such as noise, air, water and soil pollution, and heat emissions. These nuisances are both harmful to the environment and local populations (Sofer, Gnaim , Potcher, 2012). Industrial sector in Kerala in India is one of the major productive and wealth creating sectors. However, it remains as a major polluter, resulting in the degradation of the health of local population and reduction in property values (Baby, 2003).

            More so, air pollution, while being a negative externality, has led to lower property values in Bogotá, Columbia (Fernado, 2000). Also, in Delhi, environmental pollution has reached alarming levels, Industry is one of the most important causes. There are over 100,000 mostly small unauthorised units located in residential areas many of them is highly polluting chemical, metal, asbestos, rubber, and plastic factories. Unhealthy conditions prevail where industry and residences are intermixed (Bentinck and Chikara, 2001). Also, there are traces of areas in developing countries such as African countries where there is concentration of industries located close to residential areas such as Kenya, Morocco, Egypt, Sudan, etc.

            Furthermore, In West African region particularly Nigeria, there are concentration of industries located close to residential areas most of which are operating illegally and it is very common in Lagos state such as Isolo, Mushin, Apapa, Ikotun, Ikeja, etc. There are also many clustering of localization of industries in various part of Nigeria such as Ogun State, Port Harcourt, Delta State, Ibadan, etc. In Ibadan, there are areas characterized by concentration of industry such as Bodija, Oke Ado, Oluyole Industrial Estate, among others. Although the development of industrial properties should be based on mono-functional policy concept of separating industry and housing, residents may be affected by industrial activities due to multiple perceived disamenities such as noise, traffic, congestion, air pollution, water pollution, land pollution, and obstruction of view. This study will contribute to the planning debate by elaborating on the implication of the presence of industrial properties such as factories on direct residential properties. This study aims at assessing negative externalities from industrial sites on nearby residential property values in Ibadan and also to assess the magnitude of such impact on the residential property values.

            The development of industrial and workshop activities in residential areas in Ibadan is causing environmental nuisance such as noise, air, water, soil pollution, and heat emission that are harmful to the health of dwellers in these areas and also affect the value of residential properties located in these areas in Ibadan. Industrial activities being a major producer of environmental nuisances are concentrated in specific zones in Ibadan, which is well monitored. Nevertheless, there are a number of cases where residential land uses are mixed with industrial activities some areas in Ibadan which may arise probably through illegal means or through conversion of use which affect residential property values located in these areas and also affect the wellbeing and safety of people that reside in these areas and in turn affect property values which is evident on the rent and prices that tenants or purchasers are willing to offer for such properties. Industrial activities directly or indirectly create problems which are detrimental to the health and survival, and wellbeing of people residing in residential properties located close to industrial sites in Ibadan, industrial activities also affect residential property values which are located close to industrial properties.

            The noise, water, air, soil pollution from industrial activities can have a negative effect on property prices (Anstine, 2003; Nelson, 2004; David 2006). It is supposed that noxious facilities would affect house values significantly. Clark (2006) finds that there are consistently negative impact on houses proximity to factories with statistically important influence on residential property values. It gives out evidence on the price drop on the real sale price of houses if the houses are located proximity to factories.

            Environmental pollution which include land, water, air, and noise pollution from industrial activities have negative effect on both residential property values and on the health and wellbeing of the occupants of those properties and thus reduces the values of residential properties because people will not want to live close to areas where their health will be endangered and where they will be disturb by frequent noise and they will want to live in areas where their health will be secured (Sofer et al., 2012). This issues have been addressed by many researchers so as to proffer a lasting solution to these negative effect but their recommended measures is yet to bring these negative externalities on residential property values as a result of proximity to industrial properties to a satisfactory level which prompted this study. This study aims at identifying the adverse effect of the operations of industrial activities on the surrounding residential properties in Ibadan.

1.2        Problem Statement

The distance of residential properties industrial sites has a statistically significant negative effect on the values of residential properties (Friso, and Henri, 2009). However the effect is largely localized within a relatively short distance from the nearest industrial site. (Bentinck and Chikara, 2001). Absence of solid waste disposal facilities by some industries in Ibadan causes discarded litters from the factories and end up in heaps along the streets. These materials may contaminate adjacent properties or be disposed of indiscriminately and contaminate residential properties. The presence of industrial areas close to residential areas in Ibadan causes overstressed of the limited infrastructural facilities provided and adverse environmental condition. Factories also cause the most serious water pollution. Industrial wastewater seeps into the groundwater, polluting the water.

It has even been claimed that vibrations caused by machines are so severe that cracks are showing up in the walls of houses (Bentinck and Chikara, 2001). Industrial machines, plants and generators, etc. is considered noise to most people. Typically, little effort is made to dispose of toxic materials from industry properly, which often are by products of manufacturing industry.  Can lead to economic obsolescence of residential properties situated close to industrial properties when there is little or no demand on contaminated properties because prospective tenants will not want to endanger their health. In cases of severe contamination sale may not be possible or the sale price may have to be reduced.

There are concentrations of industries in some areas in Nigeria, especially Lagos, Ibadan, Port Harcourt, etc. And some industrial sites are located close to residential areas. Activities from these industrial sites produces some kind of nuisance to the nearby residential neighbourhood such as air pollution (from burning of fossil fuels from factory plants and machinery, factory generators, etc.), water pollution (i.e., the discharge of industrial by-product and hazardous chemicals into streams, rivers, etc.), industrial waste generation, and noise pollution from factory machines and generators. All this nuisance produced from industrial sites directly or indirectly have an impact (usually negative) on the values of residential properties situated close to them. Although industrial properties are not meant to be situated within residential neighbourhood but there are instances in Nigeria where industrial properties are located close to residential properties such as it is found in Lagos State (i.e. Ikeja, Ikorodu, Apapa, etc.), Port Harcourt, Ibadan (i.e Old Bodija, Oke ado, Oluyole Industrial Estate, etc.). The activities from these industries will undoubtedly have impact on the values of residential properties located close to them. The activities from these industrial sites generate noise and contamination within the environment where industrial properties such as factories are located close to residential properties, and the noise and contamination in turns bring about stigma on the residential properties located where industrial operations are being held and thus affect their values. The noise and contamination produced from industrial operations also have health implication of those occupying the affected residential properties. Also, prospective tenant may not want to settle in contaminated environment and where there is undesired noise and this will have a great effect on the property values situated in a contaminated and noisy environment.

            According to Thomson (2003) industrial revolution and subsequent growth of rapid industrialization have caused serious threats to sustainable development of both developed and developing countries. He also pointed out that industrial production processes have resulted into large scale emission of waste into the environment causing severe threat to traditional agrarian practices, suppressing the values of rural and urban residential properties and reducing quality of human life. Although he and other researchers has responded to this social menace by developing and recommending measures to regulate the polluting behaviour of firms but had not attained sufficient progress in regulating industrial pollution and its influence on human life and property values.

Realizing the need for developing a sustainable economy through an appropriate environmental engineering, government has formulated a number of policies from research works and enacted legislations. Despite these initiatives, the process of industrialization continues to inflict damages to human health and property values in Ibadan. Industrial activities operating close to residential properties in Ibadan area produce impact of noise pollution and environmental contamination which have adverse effect on the health, safety and wellbeing of people occupying the residential properties and also have negative effect on residential property values. But in Nigeria, there is no legal frame research upon which noise pollution can be abated. The complexity and magnitude of the problem of environmental pollution caused by industrial activities (which this study focus on) and its impact on both occupants in the affected residential areas and the residential property values calls for effective and well planned measures in Ibadan and Nigeria at large. Based on the above discussion, the following questions agitates my mind:

 

Research Questions

a. What are the responses of tenants to the nuisance produced by industrial activities?

b. What are the environmental problems posed on the residential properties as a result of nearness to industrial sites?

c. What impact do environmental problems have on residential property values?

d. How are the values of residential properties affected at varying distances from industrial sites?

 

        

 

 

 

1.3   Aim and Objectives

The study aims at determining the associated problems of siting industrial properties within residential areas in Ibadan, with a view to determining the effect of industrial land use on rental values of neighbouring residential properties.

Towards achieving this aim, the following objectives are set to:

i. identify the industrial properties located in the study area.

ii. identify the environmental problems posed on the residents by the location of the industries.

iii. examine the impact of the environmental problems on the rental values of residential properties

iv. examine the rental values of residential properties at varying distances from the industries.

 

1.4       Justification of Study

Despite the fact that there is concentration of industries in many parts of the Nigeria and where in some instances, there is presence of location of industrial properties close to residential properties. Government and its agencies, and researchers in the area of real estate do not give much attention to the problems associated with siting industrial properties close to residential properties which prompted this study.  This aspect of research has not gained the focus of researchers in Nigeria and many developing countries. More so, what prompted me to this area of research is that, this area of study has not been well researched by researchers in Nigeria and most developing world, and identifying the existence of concentration of industries within residential properties in Ibadan especially in the study area and realizing the need to address the problems of siting industrial activities close to residential properties in Nigeria, brought about my interest in this area of study.

            This study will assess the effect of negative externalities produced by industrial activities on residential property values  as a result of nearness of residential properties to the industrial properties by comparing the variation in rental values and/or purchase prices (capital value, of recently sold) of the residential properties within the industrial area with the prices and rents of residential properties located a bit far away from where the industrial activities takes place in Oluyole, Ibadan. This study will also examine the impact of negative externalities of industrial activities on residential property values in the polluted areas in Ibadan by focusing and noting the size (large or small) and the nature of industrial operations. The study area of this research work is majorly characterised by medium scale industry. Thus, this study will focus on the effect of operations of medium scale and small scale industry on the residential property values in Ibadan. This study will only focus on the negative or adverse effect of industrial activities on surrounding residential property values in the study area.

            Lastly, this study will call for the attention of researchers and government and its agencies to the issue of siting industrial properties close to residential properties in Nigeria and this study will try to enlighten and educate professionals in the field of real estate the problems associated with presence of industrial properties within residential neighbourhood and the effect on residential property values.

1.5       Scope of Study

            This study focuses or is restricted to the assessment of the adverse effect or negative externalities of industrial activities operating close to residential areas in Oluyole Industrial Estate in Ibadan i.e., the adverse effect of industrial activities on the residential property values within and around, Oluyole Industrial Estate in Ibadan. This study will also be restricted to evaluating the effect of noise and air pollution, and greenhouse effect produced by industrial activities on the residential property values in the study area. This study will also compare rental and/or capital values of residential properties within the estate with the residential properties situated outside or not too close or a bit far from Oluyole Industrial Estate but within Oluyole, Ibadan area.

Oluyole Industrial Estate is an industrial estate where there is presence of residential properties located close to it. The activities from this industrial estate produces noise, air, and water pollution which affect the values of residential properties that is situated close to the industrial estate directly or indirectly which is the focus of this study. Although the industrial estate can also have positive effect on the values of residential properties located close to them in form of nearness to sources of employment. The reason behind choosing Ibadan as area of study is that there are presence of concentration of industries situated close to residential properties in some areas in Ibadan particularly the study area and it is the area am familiar with.

Finally, this study will not dwell much on positive effect of locating residential properties close to industrial properties but this study will focus on negative externalities or adverse effect of industrial activities on the residential property values in Ibadan.

1.6 Limitations of the Study

The major shortcomings of this study were that of scope, coverage, time frame, financial constraint, and lack of response from some of the respondents. Due to the nature of this study, two groups of respondent (estate firms and tenants/occupiers) are administered with two separate questionnaires. Administration of questionnaires started with the estate firms in order to ensure faster retrieval of questionnaires, but since the period for administration was not far from the festive season, some firms extended their resumption date while some firms that resumed earlier enough delayed the retrieval of questionnaires. Some firms relocated from their previous location making it very difficult to get across to them.

Administration of questionnaires on tenants during the study also posed some challenges. During the working days, the number of tenants that could possibly be captured is always very low as many of them are usually in their office or somewhere doing their various business while on weekends the tenants would seem to be available only for some of them to present series of excuses for not been able to fill the questionnaires. Incessant pleading and series of explanations had to be resorted to in order to encourage filling of the questionnaires by respondents assisted in achieving up to the number of respondent used for the study.

In addition, the time frame required for the project was a limiting factor which made it impossible for some questionnaires to be retrieved, high cost of transportation during questionnaire administration due to fuel chronic fuel scarcity, and there was lack of adequate fund meant to make this project a success. However, despite various limitations faced, it is affirmed that they contributed no negative impact or influence to the result of the study.

1.7        Study Area

Ibadan is the capital of Oyo state and the third largest metropolitan city in Nigeria, after Lagos and Kano with a population of 1,338,659 according to the 2006 census. Located between coordinates 7⁰23'47"N and 7.39639⁰N, 3⁰55'0"E and 3.916667⁰E, Ibadan is also the largest metropolitan geographical area in Nigeria. Ibadan is located in south western Nigeria, about120km east of the border with the Republic of Benin in the forest zone close to the boundary between the forest and the savannah. The city ranges in elevation from 150m in the valley area, to275m above sea level on the major north-south ridge which crosses the central part of the city. Ibadan had been the centre of administration of the old Western Region since the days of the British Colonial rule and parts of the city’s ancient protective walls still stand to this day. The principal inhabitants of the city are Yoruba people.

Ibadan has a tropical wet and dry climate (Koppen climate classification) with a lengthy wet season and relatively constant temperature throughout the course of the year. Ibadan’s wet season runs from March to October, August sees somewhat of a lull in precipitation. This will nearly divide the wet season into two (2) different wet seasons. Like a good portion of West Africa, Ibadan experiences the harmattan between the months of November and February (BBC Weather 2010). With its strategic location on the railway line connecting Lagos to Kano, the city is a major trade centre for trade in cassava, cocoa, cotton, timber, rubber and palm oil. The main industries in the city area include the processing of agricultural products, tobacco processing and cigarette, flour milling, leather making and furniture making (Lloyd et.al. 1967). The Oluyole Industrial Estate Layout lies in the heart of Ibadan and is the second most industrialized region of the city after Lagos-Ibadan expressway region in this region, various industries especially food processing and other light manufacturing industries are located.

 

THE IMPACT OF CRIME ON RESIDENTIAL PROPERTY VALUE A CASE STUDY OF ABEOKUTA

 

THE IMPACT OF CRIME ON RESIDENTIAL PROPERTY VALUE

A CASE STUDY OF ABEOKUTA

 

ABSTRACT

 

This study examines the impact of Abuja railway stations on residential and commercial property values.To achieve the aim, the researcher seek to identify the types of crime common in the study area, assess the factors that encourage crime and analyze the relationship between crime rate and residential property value in Abeokuta. The research adopted the survey design which offers the opportunity to gather information through the use of questionnaires, personal interview and observation. Total of 100 copies of structured questionnaire was administered to the respondents comprising of residents of Abeokuta and professionals in real estate. Data were presented and analysed using simple statistical tools. The study revealed that the operation of the railway station did not have any significant impact on the property value.This means that increase in property rental value observed is not attributed to the operation of the railway station.Finally, it is recommended that the government should increase the operational capacity of the railways station, beyond its present level and to also increase the numbers of transits per day as this will encourage more patronage thereby impacting positively on property value. Also the planning authority should ensure adequate planning provisions to accommodate further development of commercial and residential properties within and around the network node.

 

 

CHAPTER ONE

INTRODUCTION

1.1       Background of the study

Most urban cities of the world have experienced a remarkable rapid urban growth resulting from industrialization and technological advancement. All over the world threats from terrorism, drug cartel and organized crime have been increasing at an alarming rate (Mishral, 2013). In Nigeria, industrialization and unplanned urbanization characterized the economic and social growth processes. The spatial expression of these realities and the consequence of simultaneous urbanization with the uncontrolled growth pattern in the most of the urban cities are manifested in diverse urban problems such as urban decay where visible forms of drugs use anti–social behaviorand criminal damage to public and private properties are the order of the day (Giblion, 2004).

 

Crime and insecurity has been established to negatively influence residential property value, individual’s mental, physical and social activities and also the vitality of residential neighbourhood (De Biasi, 2017). According to Ahmed (2012), crime occurrence in Nigerian cities have shifted from simple crime such as stealing, burglary, rape etc to more sophisticated crime of terrorism, kidnapping, child trafficking etc. The environmental, social health and economic ramifications of this situation in our cities have tremendous impact on urban economy and security (Ogboi 2009).

 

According to the 1999 Federal Republic of Nigerian constitution, ‘security and welfare of people stands as one of the main purpose of the government existence’ however, this constitutional responsibility have long failed in placing a safe and secured environment for properties, lives, individual daily operations and economic events except for those in government’s high ranking positions who are usually guided by all sort of security (Okonkwo, et al, 2015). More so, these disquieting insecurity levels have increased the terrorism and crime rate in different states of the country with Abeokuta not excluded. The crime rate across the country keep breeding destruction of properties and live as well as increasing fear of insecurity. This then leaves revolting consequences for people, business and economic growth as activities such as foreign direct invest and international organisations wishing to invest in the country’s real estate are being discouraged.

 

On a general note real estate owners or users are often prone to diverse form of insecurity ranging from natural disaster like earthquake; hurricane sandy to that of man-made insecurity and so on, which constitute mainly properties and violent crime (Olajide and Mohg Lizam, 2017). The recent crime profile of Abeokuta, the study area, has nexus with the urbanization and rural urban migration effects manifesting in it. However, incidence of crime in Abeokuta seems to be higher in the poorer neighborhoods where higher population density, deteriorated living condition and unemployment are rife. The inadequate policing in the areas makes the victims soft targets for criminal tendencies. There are also incidents of crime such as armed robbery, pick pocketing, and vandalism in the posh residential areas and commercial precincts that raise poser about the livability of the study area, and the ability of it to attract investments that rely on adequate security for survival. It is against this background that this study seek to examine the impact of crime on residential property value in Abeokuta,

 

 

1.2       Statement of problems

The problem of urban crime has typically been viewed as a cost to society in terms of bodily injury, property loss and police protection costs.  The impact of urban crime on the total utility derived from urban living has become a topic of increasing concern as millions of naira are invested to  increase the levels of residential home security systems which ranges from simple to sophisticated security system such as trained dogs, thermal cameras, high/electric fencing, vigilantes, fire/back to base alarm systems, panic buttons, surveillance equipment and wire, fire system, home automation, temperature, spikes floor and water sensors, CCTV monitors, video recorders, 24hours security guards, and any type of anti-intruder perimeter control systems (Radetskiy, et al 2015). This however has not been fully employed in Nigeria owning to procurement cost, difficulty in installation or use as well as the unplanned nature of most housing environments. Ajibola, et al (2011) noted the inefficient security problem within the length and breathe of the country which has resulted into numerous crime acts, loss of lives and properties. This has made some residential property owners and tenants to vacate their comfort zone in search for a secured environment which are less comfortable. More so, it was observed that some fully furnished apartment across states including Abeokuta, Ogun state, Nigeria are scarcely occupied owning to the rate of crime which then affects developer’s profit property value in general. These problems have necessitated this research to examine the impact of crime on residential property value in Abeokuta.

 

1.3       Aim and objectives

The aim of this project is to examine the impact of crime on residential  property value, a case study of Abeokuta.

The following specific objectives will be pursued:

1.      To identify the types of crime common in the study area

2.      To assess the factors that encourage crime in the study area

3.      To analyze the relationship between crime rate and residential property rental value in Abeokuta.

 

1.4        Research Questions

In attempt to achievement the objectives of the study, the following research questions will serve as a guide:

i.                    What are the types of crime common in the study area?

ii.                  What are the factors that encourage crime in the study area?

iii.                What is the relationship between crime rate and residential property rental value in Abeokuta?

 

1.5       Justification of the study

The outcome of this study will educate the general public the impact of crime on residential properties as the study will proffer solution to the problem of insecurity; improve lives and property and development of infrastructures to avoid low property rental value in the study area

This will also sensitize the policy makers on the need to beef up security in order to safeguard life and property in the   study area. 

This research will also serve as a resource base to other scholars, estate surveyors and valuer, property developers, investors and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic.

 

1.6       Scope of the study

The scope of this study is limited to the impact of crime on residential property value. The study will be geographically limited to Abeokuta the state capital of Ogun state and will be further to only residential properties in the categories of tenement building, self contains, block of flats, bungalows and duplex.

 

1.7       Definition of Terms

Crime: A crime is an unlawful act punishable by a state or other authority. One proposed definition is that a crime or offence (or criminal offence) is an act harmful not only to some individual but also to a community, society or the state ("a public wrong").

Residential Property: it is a building that is used or suitable for dwelling purpose. They are dwelling house such as bungalows, duplex, detached houses, semi-detached houses, etc (Ogbodo, 2012).

Property: This is the embodiment of tangible ownership right or bundles of right in real estate. It could also be described as a concept of right which can be held separately (Babatunde, 2003)

Rental Value: This is the worth or value of property in an open market. It is also the value arising out of the lease or renting out of a property on a periodic basis usually yearly (Omole, 2001)

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 office.

1.8       The Study Area

Abeokuta, Ogun State is the biggest city in the state, as well as its capital. It covers 879 square kilometres of land mass and has the population of almost half a million people. Abeokuta was founded in 1830 after the intertribal wars ravaged refugees in Egba forest from their original homes between 1817 and 1830. The name of the town "ABEOKUTA" was derived from the protection which the fleeing settlers sought under the Olumo Rock, now a tourist center in the town. Abeokuta means 'the refugees under a rock', signifying the protection which the Olumo Rock offered the refugees from possible attacks. The first and major of these series of internecine wars was the one which broke out as a result of an incident at Apomu Market, now in the Irewolede Local Government area of Osun State. In 1821, an Owu man who sold alligator peppers was at Apomu Market selling his wares. He laid them out in piles containing 200 peppers each. An Ijebu woman came to the market and purchased a pile. She did not verify on the spot the correctness of the number of peppers in the pile she selected, but found it convenient to do counting on reaching home. She claimed to find only 199, which meant that one was missing.

The Ijebu woman went back to the market to accost the Owu man over the one pepper by which the portion she selected was less, and demanded restitution of the missing one. But the Owu man objected, maintaining that he was sure of his own count. The argument over this single pepper developed into an open quarrell between the two of them. Later, it blew out into a fracas in which people of Owu and Ijebu clans in the market took sides with their kith and kin. Sectional sentiments soon became whipped up into open confrontation in which a life was lost and several people were injured.

Each side went home to narrate to their Oba, chiefs and townsmen the events of the day. As would be expected, each group took umbrage over what it considered to be a raw deal from the opposing camp. Within a matter of days, the fight over a single alligator pepper had resulted into a total war in which the Owu and Ijebu peoples threw caution to the winds and restored to open arms. Before this incident, the people of Ife had suffered defeats in the hands of the Owu people, and the Ijebu had similarly been routed by the Owu in a war fought over the slave trading. Now, both the Ife and Ijebu saw the opportunity to settle scores with the Owu by joining forces to face the Owu. Even the remnants of the Oyo forces, just returned from their mission to repel a Fulani invasion, and who were by then mere lay-about, teamed up with Ife and Ijebu forces. The combined attack of the Ife-Ijebu-Oyo coalition forced the Owu homeland to fall after a long siege, and the events following this catastrophe gave birth to the founding of Abeokuta a few years after.

The fall of the Owu homeland was quickly followed by the fall of some other Egba towns, each being sacked in succession by the alliance of the Ife-Ijebu-Oyo forces. The Egba towns which had folded their arms while the Owu people fought alone, now became victims of the ravening wolves represented by these rallies. The only pity of it was that among the first to fall was Ikija. Ikija was attacked because its people stood by the Owu people in the war of 'Alligator Pepper'. Before long, many Egba towns also fell and all the survivors eventually sought refuge in Abeokuta after a few years, and thus made Abeokuta their permanent place of sojourn.

Their decision to leave Ibadan for Abeokuta was nowever informed by the hostility of the Oyo, Ife and Ijebu, with whom they shared sojourn in Ibadan. Lamodi, a warrior of note, was credited with the initiative for the migration to Abeokuta, although he himself never saw the Promised Land because he died on the way. He was at the time the Balogun of the Egba people. Sodeke, who was then the Seriki of the Egba, took over and led the first wave of immigration to Abeokuta in 1830. Bringing up the rear of the migrants to Abeokuta were the Owu people in about the year 1834. Some others also came later.

The site they choose for Abeokuta was originally the farmland of an Itoko farmer whose name was Adagba. Adagba had no choice but to receive the Egba refugees with both hands and the credit he got was that Abeokuta became known by another name - 'OKO ADAGBA', meaning Adagba's Farmstead. On setting in Abeokuta, each community continued its main occupation of farming, cultivating mainly food crops and cash crops, notably cotton, palm-trees, and kola-nuts. A few did pretty trading and some practiced itinerant merchandising. There were also craftsmen, hunters, drummers, weavers and dryers; some practiced traditional healing, mingling it with some form of divination. They were very religious and each adhered to a belief in one God or another. They specialized in a genre of oral traditional poetry known as Ege which is both musical and philosophical in content and forms.

The first few years immediately following the settling in Abeokuta were fraught with difficulties - social, political and economic. But for the fact that they lived simple lives, they would have found the problems overwhelming. The problems of each group findings and selecting appropriate land to farm was enough to daunt them. And the quick succession of the waves of settlers posed problems with extra dimensions. The new pottage represented by the many group of settlers needed time to simmer and mellow down to attain acceptable taste. Then there were the need for food supply. Being new settlers, they needed a year or two to be able to plant enough food to feed themselves. So it was largely a question of scrounging for food on in the first two years by a people who had escaped from unsettling ravages of war. 

Between 1830 and the turn of the century, the settlers in Abeokuta were forced into fighting several wars. In these wars, they creditably proved their mettle. In 1832, the Ijebu Remo people provoked the new settlers into taking arms against several Ijebu Remo towns in a war called - Owiwi war. In 1834, the Ibadan people also challenged them to a war which resulted in the defeat of the Ibadan army in what was known as the Battle of Arakanga. In 1842, the settlers took the initiative of a war with the Ota people in order to ensure free movement through Ota territory each time they needed to get to Lagos to buy firearms. This led to another war in 1844 when they attacked Ado for assisting the Ota people two years before. The same year, the Dahomeans, under King Gezo, waged war against Abeokuta but were repulsed. The Dahomey army repeated the invasion in 1851 and suffered a similar defeat. In 1849, Abeokuta attacked Ibarapa for waylaying the Egba in their territory. Among other wars fought by Abeokuta were the Ijebu-Ere War in 1851, and the Ijaye War of 1860-1862, and the Makun War of 1862-1864, as well as a few others. In most of these encounters, they emerged victorious - although they suffered their own reverses in some as well. Among Egba war leaders were Sodeke, Ogunbona, Apati, Seriki Akoodu, Ogundipe Alatise, Sokenu, Basorun Somoye, Olufakun, Agbo, Lumloye, Iyalode Tinubu, Majekodunmi, and a host of others.