CHALLENGES OF FLOODING IN PORT HARCOURT METROPOLIS AREA

CHALLENGES OF FLOODING IN PORT HARCOURT METROPOLIS AREA

CHAPTER ONE

INTRODUCTION

1.1     Background Of The Study

Throughout history, water supply has been among the decisive factors in the search for adequate settlement locations. This has made river banks, coastal areas and lakesides to become preferred living spaces (WMO/GWP, 2008). Most cities, including Port-Harcourt are located in the valleys and flood plains or on coasts owing to their additional location advantages which favour development. Flood plains in the lower reaches of rivers provide fertile and flat land for productive agriculture. Moreover, estuaries and other coastal areas are more favoured as settlement locations since they may serve as linkages between river and sea navigation (WMO/GWP, 2008). However, one of the costs of such favourable locations is an increased flood risk. Irrespective of this, people continue to live in these areas.

A flood is the accumulation of too much water which rises to overflow land which is not normally submerged (Mukhopadhyay, 2010). Flooding can comprise overflow of a river as a result of prolonged seasonal rainfall, rainstorm, snowmelt, dam-breaks, accumulation of rainwater in low-lying areas with a high water table, or inadequate storm drainage. Floods could also be caused by intrusion of sea water onto coast lands during cyclonic/tidal surges (Handmer, Penning-Rowsell and Tapsell, 1999; Stoltman, Lidstone and DeChano, 2004). Floods have been noted to cause about one third of all deaths, one third of all injuries and one third of all damage from natural disasters (Askew, 1999). Flooding in various parts of Nigeria have forced thousands of people away from their homes, destroyed businesses, polluted water resources and increased the risk of diseases (Jeb and Aggarwal, 2008; Etuonovbe, 2011; Olorunfemi, 2011).

The occurrence of floods in Nigeria is not a recent phenomenon (Ayoade, 1979; Ayoade and Akintola, 1980; Olaniran, 1983; Ologunorisa and Terso, 2006; Adeloye and Rustum, 2011). The recent occurrences of flooding in Nigeria such as Sokoto flood in 2010, Ibadan flood in 2011, Lagos flood in 2011, and most parts of the country in 2012 had shown that flooding is one of the major environmental problems faced in Nigeria. Floods in Nigeria occur in three main forms, viz; coastal flooding, river flooding and urban flooding (Oriola, 1994; Okoduwa, 1999; Folorunsho and Awosika 2001; Ologunorisa, 2004; Orok, 2011). A review of these forms of floods have shown that, no single factor can be singled out as the only factor responsible for each flood type, though, a factor (e.g. rainfall) can cause all flood types. It has increasingly been acknowledged that the Niger Delta region in Nigeria experiences perennial floods owing to its location, low-lying topography and heavy rainfall, and Port Harcourt (located in the Niger Delta region) is one of such areas considered to be vulnerable to flooding. Some research works that examined the causal factors of flooding in Nigeria have attributed it to topography, soil/vegetation/river alteration, increased heavy rainfall, uncontrolled waste dumping, land use change and unplanned urbanisation (Oriola, 1994; Onokerhoraye, 1995; Parker, 1999; Folorunsho and Awosika 2001; Ologunorisa, 2004; Ogba and Utang, 2008; Adeloye and Rustum, 2011).

Flooding incidents have claimed many lives, rendered many others homeless and disrupted a wide range of environmental factors and socio-economic activities related to agriculture, vegetation and sustenance of human and wild life (Jeyaseelan, 1999).  Flood disaster is not a recent phenomenon in the country, and its destructive tendencies are sometimes enormous. The coastal cities of Lagos, Port Harcourt, Calabar, Uyo, Warri among others have severally experienced incidences that have claimed many lives and properties worth millions of dollar.  Floods occur in Nigeria in three main forms: coastal flooding, river flooding and urban flooding (Folorunsho & Awosika, 2001). Coastal flooding occurs in the low-lying belt of mangrove and fresh water swamps along the coast (Folorunsho & Awosika, 2001). River flooding occurs in the flood plains of the larger rivers, while sudden, short-lived flash floods are associated with rivers in the inland areas where sudden heavy rains can change them into destructive torrents within a short period (Folorunsho & Awosika, 2001). Urban flooding on the other hand occurs in towns, on flat or low-lying terrain especially where little or no provision has been made for surface drainage, or where existing drainage has been blocked with municipal waste, refuses and eroded soil sediments (Folorunsho & Awosika, 2001). Flood is very difficult to deal with; its devastating effects on buildings can be categorized into three: structural, economic, and health related effects. Disasters Management Centre, college of Engineering, University of Wisconsin – Madison (1995) identified the following structural effects of flood on buildings:

1. Buildings washed away due to the impact of the water under high stream velocity. Such buildings are usually destroyed or dislocated beyond feasible reconstruction
2. Floatation of buildings caused by rising water. This occurs when light–weight houses are not securely anchored or braced.
3. Damage caused by inundation of buildings: A building may remain intact and stable on its foundation, while its material is gradually and severely damaged.
4. Undercutting of building: here the velocity of flood may scour and erode the building’s foundation or the earth under the foundation. This may result in total collapse of affected buildings.
5. Damage caused by debris: massive floating objects like trees and materials from other collapsed house may have impact significant enough to cause damage to the standing buildings.
6. Flood leads to the exposure of some parts of the buildings foundation and soaking up of base blocks. The weakening of the base blocks by the flood may result to collapse
7. When the building foundation is not well rammed i.e. well compacted, excessive flood will lead to softening of the foundation base.

In recent times, floods have destroyed property worth millions of naira in the different areas of Nigeria. Flooding in urban areas is seriously becoming an ecological menace in Nigeria as several coastal areas along the Atlantic ocean, surrounding cities and river valleys are affected by flooding on a yearly basis (Jeb & Aggarwal, 2008) Floods have caused land degradation in some other parts of the country (Abbas, 2008). The obvious reason for flooding especially in municipalities and coastal areas in Nigeria like Porthacourt lies in the wide distribution of low-lying coastal areas and river floodplains, and because these areas have fast become an long standing attractions for human settlement (Ologunorisa & Abawua, 2005). It is against this background that this study seek to examine the challenges of flooding in Portharcourt metropolis area with the view of developing measures that will help government and relief agencies in identification of flood prone areas and in planning against flooding events in the future.

1.2     STATEMENT OF THE PROBLEM

The challenges and evaluation of floods will need knowledge of flood risk areas in order to develop prevention as well as mitigation measures in stopping it. Flood hazard has cause a lot of worry in the country, causing the death of people, collapse of buildings, destruction of properties and agricultural produce. So it is essential to define the actual causes of flood in order to minimize and avoid the occurrence of such hazard in the future.

Flooding is experienced in most homes during the rainy season, On a typical flooded day in the city, roads are rendered  impassable to both human and vehicular traffic, properties are damaged as a result of loss of value, and occupants are forced to vacate their homes and occasionally lives are made difficult for some times as a result of the economic effects of the loss, (Nasiri et al.; 2016). Furthermore, the effect of flood on the residents of the city of Port Harcourt especially property owners is such that many lives are lost and property worth millions damaged (Oku et al.; 2011). According to (Elenwo, 2015), the losses recorded as a result of flooding in the city are enormous; the destructions are complete or partial impairment of values on properties, goods and services. Flooding in the Metropolis was exacerbated by erection of illegal structures or buildings on water channels and the impacts on the environment especially on developed property values was the focus of this study. The following research questions were generated and answered in the study.

1. What are the frequency and duration of flooding in Port Harcourt Metropolis?
2. What types of drainage systems are available in Port Harcourt Metropolis?
3. What are the conditions of the drainages in Port Harcourt Metropolis?
4. What are the rent charges on developed property affected by flooding in the Metropolis?
5. What are the structural/erosional damage arising from the flooding and flood depth?
6. To what extent do frequency of flooding influence the value of developed properties in the Metropolis?
7. To what extent did drainage conditions, location of houses and rainfall intensities affect flood frequency?

 1.3    AIM AND OBJECTIVES

1.3.1 Aim:

The aim of this study is to examine the challenges of flooding in Port Harcourt metropolis area.

1.3.2    Objectives

The aim was achieved by the following identified objectives as follows to;

1.  Examine the frequency and duration of flooding in Port Harcourt Metropolis
2. Examine the availability of drainage in Port Harcourt Metropolis
3. Investigate the conditions of drainages in Port Harcourt Metropolis
4. Examine the rent charges on developed properties affected by flooding in the Metropolis
5. What are the structural/erosional damage arising from the flooding and flood depth?
6. Determine the relationship between frequency of flooding and the value of developed properties in the metropolis?
7. Determine the relationship between drainage conditions, location of houses and rainfall intensities

 1.4    Need For Study

Nigerian government established the National Emergency Management Agency (NEMA) through (Act 12 as amended by Act 50 of 1999), to manage and respond to disaster related activities in Nigeria such as flooding, accidents caused natural and man-made sources (Adeoye, 2009). NEMA is saddled with the responsibility of formulating policies, assessment of natural and man-made disasters, provision of mitigating measures for disaster related activities, coordinating plans and programmes for offering relief items to victims of such disasters. It is essential that assessment of floods will require knowledge of flood risk areas in order to develop prevention as well as mitigation measures in controlling flooding in the country. The Rivers State government established State Emergency Management Agency (SEMA) to also taken care of hazard area across the state.

1.5     Scope And Limitation Of The Study        

The scope of this research project is limited to challenges of flooding in Port Harcourt Metropolis Area. The research work would only be limited to data’s collected through questionnaire distributed to residents within Kaduna metropolis.

1.6     Research Methodology

The research work is design base on relevant literature review carried out by academicians and professionals who have carried out series of researches on environmental disaster.

A convenient sampling method will be adopted; this is a sampling method according to (Teddlie & Yu, 2007) that involves choosing from a sample that is not only accessible, but respondent are willing to take part in the study.

Data for the research will be collected through a survey questionnaire administered to resident of Port Harcourt metropolis. Additional data will be gathered from SEMA and NEMA on the hazard caused by flooding in Port Harcourt metropolis, and all this will be analyzed using Relative Importance Index (RII).

 1.7    Background Of The Study Area

1.7.1 Location

Port Harcourt metropolis is located between Latitude 4045’N and Latitude 4055’N, and Longitude 6055’E and Longitude 7005’E. The city lies at the mouth of River Bonny in Rivers State. It is located at about 25km from the Atlantic Ocean and it is situated between the Dockyard creek/Bonny River and the Amadi creek. It lies at an average altitude of about 12m above mean sea level. Port Harcourt metropolis as our study area spans over two Local Government Areas (LGAs) viz; Port Harcourt and Obio/Akpor (Fig. 1) and was further divided into 13 Zones (Fig. 2).

 FIG.1: Map of Port Harcourt Metropolis

Source: Adapted from Google Earth

Source: Survey Department Port Harcourt, 1999

1.2.2 Climate The study area lies within the Koppen Tropical Rainy Af climatic zone of the Koppen classification (Koppen, 1936). Here, the average temperature for every month is above 180C and there is adequate moisture in virtually all the months. Port Harcourt metropolis experiences two seasons viz; dry and rainy seasons. Temperatures over Port Harcourt metropolis are constantly high with a mean maximum of about 340C and a mean minimum of about 210C. The highest temperatures are recorded between the months of April and October.

EFFECT OF COMPENSATION ON EMPLOYEE PERFORMANCE IN ICON INSURANCE COMPANY ABUJA

EFFECT OF COMPENSATION ON EMPLOYEE PERFORMANCE IN ICON INSURANCE COMPANY ABUJA

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CHAPTER ONE

INTRODUCTION

1. Background of the Study

Globalization requires a person to always keep up with times, starting from thoughts and knowledge to generate some useful new inventions to facilitate human to do some work, especially in a company. Increased business competition due to rapid technological and environmental changes makes a company must have strength competitiveness. The old paradigm of human resources places employees as an asset to company, but now there has been a growing new paradigm that employees are partners for a company. Human resource management has a very strategic position for company sustainability. This is because inadequate basic materials such as performance, motivation, and job satisfaction and productivity will cause disruption to company’s life sustainability.

The main driving factor for company good development is qualified human resources to encourage the company better. Compensation is one factor to affect job satisfaction of an employee. Sirait (2006) defines compensation as something received by an employee, either financial or non money reward for employee’s contribution to organization. Compensation management is a very important activity to make employees quite satisfied in their work.

Compensation is defined as the ability and responsibility of a company to contribute to its employees for their achievement of task and to appreciate their performance. Each organization should strive to improve employee satisfaction by providing a fair and competitive compensation program. High job satisfaction is expected to make employees become more loyal to organization; more motivated in work, feel happy in work, and ultimately will increase productivity.

Performance reflects how well employees meet the requirements of a job. Basically every individual has a different portion of work. It can be seen from individual’s skills and potential that directly affect on their performance. Mangkunegara (2005) explained performance as the work of quality and quantity achieved by an employee in performing their duties in accordance with responsibilities given. The work alone can be divided into two, namely hard work and smart work. Hard work includes people who always exert all their strength to work but the results are less satisfactory, while intelligent work is a work that uses a strategy to minimize the energy to do a job to get better outcome than hard work.

Lai (2011) shows a positive correlation between employee and job satisfaction based on payment, skill-based payments and performance-based payments. In addition, some demographic variables reveal a moderate effect on this relationship. The goal is to study the correlation between compensation system design and overall employee satisfaction. Nawab (2011) explains that employee compensation influenced organizational commitment and job satisfaction. Njoroge et al. (2015) shows a positive correlation between compensation and performance.

However, the performance of an organization is jointly determined by the employees’ capacity and their willingness to put in their best (William, 2016). Willingness and ability are important, since it implies that beyond a certain level, lack of ability cannot be compensated for willingness to high motivation and conversely lack of willingness cannot be compensated for employee’s ability to high level performance. Willingness and ability are necessary components of effective performance in every organization. It is on this note that this study seek to examine the effect of compensation on employee performance in Icon Insurance Company Abuja.

1. Statement of the Problem

The current era is highly competitive and organizations regardless of size, technology and market focus are facing employee retention challenges. Workers’ performance could be of low standard, in condition of inadequate compensation and motivation. Most employees leave there place of work, because of insufficient compensation. Some are willing to stay, because they know that what they benefit in terms of welfare packages (salaries, bonuses, free expense paid trips and some other tips) are not often available somewhere else. The major problem is how to compensate employees to achieving higher performance in Icon Insurance Company Abuja. Thus the need to increase productivity and efficiency in the work place or any organization has led to increasing academic interest in the area of compensation over the years. Scholars have been keenly  interested in knowing what factors are responsible for stimulating the will to work. Thus compensation has become an issue of concern for both scholars and practitioners of personnel management. Employees in both public and private sector organization are becoming increasingly aware that compensation increases productivity. Lack of proper motivation may result in losses which may eventually lead to low staff turnover, poor attitude towards work, low output level and low profitability. It is in the light of these that the study intends to examine the effect of compensation on employee performance in Icon Insurance Company Abuja.

1.3       Objectives of the study

The general objective of this study is to establish the effects of compensation on employee performance in Icon insurance Company Abuja.

1.3.1    Specific Objectives

1. To examine the effects of direct financial compensation on employee performance in Icon Insurance Abuja.
2. To assess the effects of indirect financial compensation on employee performance in Icon Insurance Company Abuja.
3. To establish the effects of non-financial compensation on employee performance in Icon Insurance Company Abuja.

1.4 Research Questions

What is the effect of direct compensation on employee performance in Icon Insurance Company Abuja?

What is the effect of indirect compensation on employee performance in Icon Insurance Company Abuja?  

What is the effect of non-financial compensation on employee performance in Icon Insurance Company Abuja?

1.5 Statement of Hypothesis

H0: Compensation has no significant effects on employee performance in Icon Insurance Company Abuja

H0: Compensation has  significant effects on employee performance in Icon Insurance Company Abuja

.5       Significant of the Study

The management of Icon Insurance Company

The findings of this study will assist Icon Insurance Company Abuja to formulate better and acceptable compensation strategies in order to enhance an affirmative outlook among employees and motivate them toward doing their work hence a better service quality and a high productivity.

Other Researchers

This study will be of significance to other researchers by assisting them have a better understanding of the subject under study for relevant resources in the future. This can be done through identification of gaps in knowledge and offer recommendations for further studies.

1.6       Scope of the study

The study will explore the effects of compensation on employee performance, a case study of Icon Insurance Company Abuja. The population targeted will be 150 employees that will include the Management Staff, Support Staff and the customers of the organization.

1.7       Limitation of the Study

Notwithstanding the areas covered by this research work, the study was greatly affected by certain constraints. The following limitations were inherent in the study.

Time Factor: This research was constrained by time limit. Time posed a threat to the successful coverage intended in the course of this study.

Cost Constraint: It is not unusual to state that the prevailing economic predicament posed a limitation to the researcher in procuring the whole material information and other relevant data needed to make this research a thorough work.

Confidentiality: The frequent rescheduling of interviews by management staff and their unwillingness to disclose some relevant information on staff motivation and training which they consider very confidential to the organization constitute one of the major limitations to this study.

1.9       Operational Definition of Terms

Compensation: Financial compensation refers to the act of providing a person with money or other things of economic value in exchange for their goods, labor, or to provide for the costs of injuries that they have incurred.

Incentive: Incentive is an act or promise for greater action; it means additional remuneration or benefit to an employee in recognition of achievement or better work. Incentives provide a spur or zeal in the employees for better performance. It is a natural thing that nobody acts without a purpose behind.

Performance: This indicates how well or satisfactory a person is fulfilling the requirement of his position on the basis of result achieved and his/her action on the job. The researcher looked at performance as the assessment of output in a giver task or work with a view of achieving result.

Productivity: Melli(2017) defined productivity as the measure of how well resources are brought together in an organization and utilized for accomplishing a set of result. The researcher sees productivity as reaching the highest level of performance with less expenditure of resources.

Job Satisfaction: According to Locke (2016) defined Job satisfaction as a situation in which a worker’s job fulfills what he values.

Intrinsic Motivation: According to Fritz Heider (2015) said intrinsic motivation comes from rewards inherent to a task or activity itself. Hertzberg (1959) “said” intrinsic motivation, develop internally and comes from, something the workers want to do.

Extrinsic Motivation: Fritz Heider(2011) said that this motivation comes from outside of the performers money is the most obvious example but coercion and threat of punishment are common extrinsic motivation.

Salaries / Wages: These are refers to as financial compensation for work done. Salaries are financial compensation for work done by standing professional or clerical personnel whose salaries are paid monthly.

Incentive and Fringe Benefits: These are defines as additional incomes that accrue to a worker in addition to his salaries and wages. They are used to induce people to contribute their efforts towards achieving organizational goals.

THE IMPACT OF PRIVATE DEVELOPERS ON FINANCING RESIDENTIAL PROPERTY DEVELOPMENT

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THE IMPACT OF PRIVATE DEVELOPERS ON FINANCING RESIDENTIAL PROPERTY DEVELOPMENT

CHAPTER ONE

1. INTRODUCTION

1.1       BACKGROUND OF THE STUDY

Private sector investment in residential real estate development in Nigeria has been one of the responses to the limited success of governments with provision of public housing as Nigeria government has consistently not been able to satisfy the demand for housing, as almost 90% of the nation’s housing stock is provided by the formal and informal private sector (FGN, 2002; UN-HABITAT, 2006; Olatubara, 2007).

The private developers play significant role in financing residential property development and housing delivering at large.  Housing finance by its very nature is a capital intensive venture which if it is to be financed through personal financial resources will require slow and tedious accumulation of savings. However, since housing provides benefits over many years, long-term credit financing is a more logical option as it will spread the repayment burden. But this requires the availability of long-term funding, and for which must be institutional capacity, structure and mechanism that will allow a convenient and effective linkage between the savers/investors and the consumers of such funds.

The sourcing of funds for investment in real estate development poses a great deal of problem for the developer. This is largely due to economic instability and stringent measures imposed by most financial institutions. This is compounded by the fact that the interest rate structure has had an unfavourable impact on funding the development of real estate especially residential property. Since the financing of real estate development is a long term project, it has necessitated the high interest rate that is being charged on the funds provided for such development purposes. Hines (1995) revealed that six major real estate financing methods are used across the world namely; Joint Venture, Equity and Debt Financing, Sale-lease Back Financing, Advance Payment of key money and Sale of Securities and private developers who source for fund from their personal savings and other possible means for financing residential property development..

In Nigeria, housing is typically financed through a number of institutional sources: Budgetary appropriations, Commercial/Merchant Banks, Insurance Companies, State Housing Corporations and the Federal Mortgage Bank of Nigeria (FMBN): and now the newly established Mortgage Institutions all these constitute the formal institutions. Informal institutions such as thrift and credit societies, and money lenders who have contributed and are still contributing substantially to the finance residential property development also persists.

Traditionally, real estate development was based on equity funds. Equity funds wholly generated and owned by one and to which there is no attachment. The chief source of equity funds is savings and these savings arise out of that part of income of individual or corporate organization. Equity funds sources could be private or public.

Private developer equity may be drawn from individuals or corporate savings, that is, retained earnings, assets stripping, for cash or revenue reserves of companies over a period of time and accumulated savings of individual from employment and/or profits from business enterprises. Other sources of private developers equity funds apart from savings include funds from family sources, friends, Isusu system and thrift system.

Availability of decent and affordable housing has been inadequate in virtually all places and almost throughout history. This is more pronounced in developing countries where rapid rate of population growth and urbanization is unmatched by corresponding and commensurate change in social, economic and technological development. (Mabogunje, 1978). Thus, this phenomenal rise in population, spontaneous increase in the number and size of most Nigerian cities have in the past few decades led to acute shortage of decent and affordable dwelling units. The outcomes of this developmental process are diverse urban problems ranging from overcrowding, deplorable environment, poor living conditions, inadequate and poor infrastructural services, homelessness and other related problems (Federal Government of Nigeria, 2004; Olotuah and Ajenifujah, 2009; Jiboye, 2009).

In many countries the private sector plays an important role in financing residential property development. It constructs housing either for sale or rent for different income groups. The private sector should participate in the construction of housing for all categories of the population either for sale or rent, manufacturing and supply of building materials in the housing construction sector, infrastructure development for human settlements and encourage members of communities to improve their living environment through community participation in projects.

In Nigeria a number of efforts have been mustered to solve the housing problem; from the most discernable and debut of the Lagos Executive Development Board (LEDB) in 1928 till now, a satisfactory level have not been achieved. The achievement from the changing finance mechanisms, material and construction technology development, delivery mechanism etc over the years is minimal and therefore calls for deeper and wider thought towards means that is all-embracing, meets other societal needs yet accelerating the enormous task of housing the nation’s teeming population (Bayode, 2008).

Residential property development is an issue that only touches on the life of an individual, but also has the potential to contribute to national development (Agbola, 1998). In Nigeria, housing is a space within which a generation of families expresses its existence and preserves the history and identities of lineage. Families discover themselves according to their lifestyle and dictates of the cultural values of the society to which they belong. The family residential housing therefore is a symbol of social identity and community recognition.

The successful completion of any kind of development largely depends on the availability and affordability of the essential factors requisite for such property development (land, labour, building materials and finance). Finance being the most significant determines the availability and quality of other factors, as it is required to acquire land, reward labour and buy building materials. Thus, this study seeks to examine the availability of finance for the purpose of residential property development in Nasarawa town, having due regards to its affordability. In view of the above therefore, efforts shall be made to assess the impact of impact of private developers on financing residential property development in Nigeria.

1.2       statement of the problem

Over the years, the government had been the major player in the area of housing delivery in Nigeria, by providing direct finance for previous housing schemes. This was embedded in the housing policy of past administrations but today, the dwindling nature of revenue accruing to the government, coupled with gross mismanagement and misappropriation of public funds and revenue has prohibited the ability of the government to continue to play her role as before (Nubi, 2000). The problem of financing residential property development has become an everyday discussion in all quarters of the public and private services of the developing countries of Africa. It has become increasingly glaring that most of the urban population live in dehumanizing housing environment while those that have access to average housing do so at abnormal cost. Furthermore, private developers as a compassionate housing providers performance need to be compare whether they are performing to the much expectation of residents in their need of housing supply. It is on this premise that the research seeks to evaluate the impact of private developers on financing residential property development.

1.3       Aim and Objectives of the Study

The aim of the study is to assess the impact of private developers on financing residential property development in Nigeria.

Objectives:

The objectives are:

1. To assess the various sources of finance available for residential property development.
2. To assess how private estate developers contribute to financing of residential property development
3. To examine the factors militating against the availability of funds for residential property development.
4. To seek ways of enhancing the present level of housing financing for residential property development

1.4       Research questions

1. What are the various sources of finance available for residential property development?
2. To what extent do private developers contribute to financing of residential property development?
3. Examine the factors militating against the availability of funds for residential property development?
4. What are the possible ways of enhancing the present level of housing financing for residential property development?

1.5       Significance of the Study

A study of this nature will be beneficial to a wide range of stakeholders in Nigeria. Recommendations made in this study will enable the government take a serious look at the current Housing policy in Nigerian, its effectiveness, alternative strategy and alternative sources and the need for re-engineering.

Also, corporate bodies and developers can use the information derived herein to further their work on source of finance for residential property development. Furthermore, this study is expected to give rise to further studies which will enhance knowledge in areas of the sources of finance for residential property development.

1.6       Scope and Limitation of the Study

In terms of scope, the study will evaluate the impact of private developers on financing residential property development with particular reference to CITEC Properties Limited Abuja. Due to limited time and resources the study not will cover the contribution of other private estate developers in the study area. The study will examine in details the dominant issues of private estate development as an option for providing finance for residential property development in Abuja.

Limitation

In the course of carrying out this research work, several challenges were encountered. Some of these challenges are:

1. Administering and gathering of questionnaires in real estate development firms was not an easy feat.
   1. The entire project was very capital intensive, gathering information on sources of project financing.
   1. Organizations are not ready and willing to review the source or sources of their project financing.

1.7       Operational Definition of Terms

Private Developers: Private developers are property developers within the private sector. They acquire buildings or land in order to construct or refurbish building projects on the site. Private developers aim to generate a profit, as opposed to the government which aims to provide buildings for social and welfare reason.

Finance: According toInvestopadia online dictionary Finance is the science that describes the management, creation and study of money, banking, credit, investments, assets and liabilities.

Estate: Udechukwu (2006) defined estate as “A legal entity denoting the character and quality of right that an individual or individuals possessed on a property.

Housing Estate: In the word of Essien G.A (2012) in his Lecture Note “An Approach to Property Development II (Vol. 3)”. “Is an area of land on which many houses are built either by private enterprise or by a public authority”.

Development: Is the process of generating latent values in land or creating benefits there from by incurring on it costs in the form of labour, capital or management skill (Umeh, 1983).

Residential Properties: Oxford advanced learners dictionary defined residential properties as properties suitable for living in, consisting of houses rather than factories, or offices.

1.8       Historical Background Of The Study Area

CITEC Property Limited Abuja Incorporated as a limited liability company in the year 2001, Citec Properties Limited Abuja began work at the Mbora district of Abuja in 2001 having secured the understanding and approval of the Federal Government to deliver houses for low income earners at its Mount Pleasant Estate on about 230 hectares of land provided by the Federal Government. Today, the estate boasts of the best infrastructure by any estate developer in the FCT.

The mission of CITEC Properties Limited is to provide top quality housing for Nigerians in life enhancing environments using experienced and qualified personnel working with the best technology available.

The core values of CITEC Properties Limited includes

• Professionalism
• Integrity
• Excellence
• Team Work
• Innovation

Mount Pleasant Estate where Citec targets about 3000 housing units features underground central sewage system, tarred internal roads with pedestrian walkways, recreation areas, school, shopping mall, worship centres and other modern facilities that make it unnecessary for residents to look outside the estate for further services.

With Mount Pleasant Estate, Citec has redefined standards and offered The Federal Capital Territory residents a wide range of top quality houses with exquisite finishing in a homely environment. Before embarking on the Mount Pleasant Estate project, Citec, in partnership with the Federal Housing Authority had built over 300 housing units of various types at its Citec Villas in Gwarimpa II Estate which has become the reference point in the Federal Capital.

CITEC Nigeria Limited has mandate under the Partnership with the Federal Housing Authority to complete 308 housing units of different house types. The partnership agreement was signed in the month of February, 2001 and mobilization to site began in the month of June 2001. Among the conditions agreed upon was a 12-month completion period. Field surveys show that only 65% of total housing units completed were within 2001 to 2004 — a period of four years. And the remaining, 35% completed between 2004 and 2006, another additional two (2) years.

The project was financed by commercial banks with very high interest rate of 32% between 2001 and 2004 which later rose to 36% in 2005. The 308 units were however completed in 2006, with project duration of six (6) years instead of 12 months as planned. However based on the detailed partnership agreement signed by the two partners on a 60:40 percent profit sharing between CITEC and FHA respectively, the expected operational profit per unit of total housing units are projected based on the assumptions that the housing units will be completed in good time and sold. There are four housing categories in Gwarimpa II partnership scheme. All the house types do not reflect the status of low and middle-income earners, but strictly for high income earners.

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