IMPACT OF REAL ESTATE SECTOR TO THE ECONOMIC GROWTH OF NIGERIA
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IMPACT OF REAL ESTATE SECTOR TO THE ECONOMIC GROWTH OF NIGERIA
CHAPITRE ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Nigeria’s real estate market has enormous potential for expansion. Until date, knowledge of its composition and growth has been restricted to its use in Nigerian national accounts. Development is a broad term that incorporates all aspects of human existence, segments, and disciplines that shape the state of an economy.
Globally, the real estate business is one of the most profitable ventures of any country and one of the markers of measuring a society’s economic growth. It is a sector that reflects an economy’s economic viability and sustainability,
as well as its poverty level. Though there was no clear data on Nigeria’s housing shortfall, it was projected that the shortage had reached around 17 million (Ebie, 2005).
Various initiatives implemented by successive governments over the years have sought to alleviate these shortages, but rather than decreasing, the shortages have increased year after year.
According to Ajanlekoko (2001), federal housing agencies were statutorily established in each state of the federation to carry out public housing programmes for each state of the federation based on housing policies.
Specifically, they are to develop estates by acquiring, developing, holding, managing, selling, leasing, or letting any movable or immovable property in their respective states;
provide a home ownership saving scheme in respect of any housing estate or building owned, constructed, and managed by them in order to enable members of the public to purchase or build their own houses; and provide sites and services schemes for residential, commercial, and industrial purposes.
If housing laws had been implemented effectively, all of this would have benefited the masses and, more importantly, contributed to the expansion of the nation’s economy through profit from sales and rents.
Unfortunately, most state housing agencies are underutilised and have been rendered superfluous, making it difficult for them to carry out their primary responsibilities as outlined in the legislation that established these agencies (Zubairu, 2001).
Essentially, the challenges with housing supply in Nigeria are anchored in three primary factors: a shortage of funding, rising building material costs, and the expense of infrastructure development.
These three issues, however, are unique to all housing delivery organisations and make inexpensive and mass housing difficult, while also reducing the real estate sector’s contribution to the nation’s economy.
1.2 STATEMENT OF THE PROBLEM
In Nigeria today, most of the housing firms and estates created by past governments are only known by their names (Mailafia, 2005). In certain states, housing corporation employees who are experts in real estate development and management have been rendered useless in their profession, while state ministries have taken over construction, and in others, they have been amalgamated with the ministries.
This condition has pushed housing development to the margins, and we rarely see government-owned homes, as opposed to the second republic. These have had a significant impact on the quantity of income generated by the real estate business.
However, engagement in private partnerships has enabled more people to benefit from the business and enhance their personal level of living. However, the researcher is investigating the impact of the real estate sector on Nigeria’s economic growth.
1.3 OBJECTIVES OF THE STUDY
The following are the study’s objectives:
1. To investigate the impact of the real estate sector on Nigeria’s economic growth.
2. To identify the reasons impeding the development of Nigeria’s real estate sector.
3. To determine how the real estate sector may significantly contribute to Nigeria’s economic development.
1.4 RESEARCH QUESTIONS
1. What is the impact of the real estate sector on Nigeria’s economic growth?
2. What are the reasons impeding the development of Nigeria’s real estate sector?
3. How might the real estate sector significantly contribute to Nigeria’s economic development?
1.5 HYPOTHESIS
HO: The real estate sector has not contributed to Nigeria’s economic progress.
HA: The real estate sector has aided Nigeria’s economic progress.
1.6 SIGNIFICANCE OF THE STUDY
The following are the study’s implications:
1. The study’s findings will be a beneficial reference for policymakers and the current government on how the real estate sector can contribute to the nation’s development and how housing regulations may be properly implemented to support economic growth.
2. This research will also serve as a resource base for other academics and researchers interested in conducting additional research in this sector in the future, and if implemented, will go so far as to provide new explanations for the topic.
1.7 SCOPE AND LIMITATIONS OF STUDY
The scope of this study on the impact of the real estate industry on the growth of the Nigerian economy will include the structure and operations of the real estate sector in Nigeria, as well as its contribution to the nation’s economy.
STUDY LIMITATIONS
1. Financial constraint- Inadequate funds tend to hamper the researcher’s efficiency in locating relevant materials, literature, or information, as well as in the data collection procedure (internet, questionnaire, and interview).
2. Time constraint- The researcher will conduct this investigation alongside other academic activities. As a result, the amount of time spent on research will be reduced.
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