THE IMPACT OF ABUJA PROPERTY DEVELOPMENT COMPANY ON QUALITY DELIVERY OF MASS HOUSING IN KUJE

THE IMPACT OF ABUJA PROPERTY DEVELOPMENT COMPANY ON QUALITY DELIVERY OF MASS HOUSING IN KUJE

ABSTRACT

The aim of this project is to examine the impact of Abuja Property Development Company on quality delivery of mass housing In Kuje. The specific objectives are as followings: examine the effectiveness of mass housing policy on housing delivery in the study area, assess the impact of Abuja property development in Mass housing delivery in the study area  and identify the relationship between Abuja Property Development company and quality mass housing delivery in Kuje. The sampling techniques adopted for this study is the random sampling techniques, the techniques give every member of the population the opportunity to be selected without any form of preferential treatment. A total of one hundred and twenty (120) copies of questionnaires were administered, and out of these, one hundred and ten (110) copies of the questionnaires were correctly filled and returned.  The researcher make use of statistical tools such as tables, percentage and descriptive methods to presents  and analyzed the data gathered from the field survey which was considered appropriate for the research. The study revealed that Abuja property Development Company contributes immensely towards the delivery of quality housing in Kuje. Finally the study recommends that the government should intensify more efforts toward making housing affordable and sustainable throughout public private partnership.

CHAPTER ONE

INTRODUCTION

1.1       Background to the Study

As the scale of the housing challenge in the developing world is increasing at an alarming pace, the need for real action to address affordable housing supply is becoming increasingly critical. To deal with this challenge governments and local authorities are updating their knowledge on global housing policy approaches in order to formulate effective policy instruments. Over the years Nigeria has developed and implemented a number of housing policies and strategies, in an attempt to address the housing of its citizens and particularly the low-income group (Abdullahi 2010).

Housing delivery in Nigeria is provided by either the Government or Private sector, but despite Federal Government access to factors of housing production, the country could at best expect 4.2% of the annual requirement. Substantial contribution is expected from other public and private sectors. It should be acknowledged that private sector developers account for most of urban housing. The production of housing in Nigeria is primarily the function of the private market; approximately 90% of urban housing is produced by private developers (Omole, 2017). Housing demand created by rural- urban migration, which account for 65% of urban population growth, the fixed supply of urban land, and inflation of rental and housing ownership cost has increase in the past decade. Unfortunately, the private sector is saddled with numerous problems which make supply always fall far short of demand and lower production quality (Nubi, 2018). The problem of qualitative housing has been a concern for both the government and individuals. Appreciating these problems, both public and private sector developers make efforts through various activities to bridge the gap between housing supply and demand, but the cost of building materials, deficiency of housing finance arrangement, stringent loan conditions from mortgage banks, government policies and most importantly geometric increase in land value are affecting housing delivery significantly in Nigeria (Raji, 2018).

Abuja and its environs have experienced a very rapid urbanization. This is largely due to urban growth associated with natural population growth and rural-urban migration driven by rapid socio-economic changes and development, tied to the movement of the seat of Federal Government of Nigeria from Lagos to Abuja in 1991. However, this growth has not been matched with simultaneous provision of quality and adequate housing infrastructure. The demand for basic infrastructure services has also grown over the years, quickly outstripping the supply capacity of existing assets which manifested in the acute shortage of dwelling units and resulted in overcrowding, high rents, poor urban living conditions. Many years of underinvestment and poor maintenance have left Abuja with a significant infrastructure deficit which is holding back the city development and economic growth. Abuja needs to make massive investments beyond the means available to government in order to close its yawning infrastructure gap. The Federal Government believes that the private sector can play an important role in providing some of this new investment through Public Private Partnerships (PPPs). Therefore, the need to provide adequate, suitable and equitable housing has remained a major priority of the government, since that piecemeal housing can never solve the housing requirement of the country estimated at about 16 million units (Gemade, 2010).

Abuja Property Development Company is a property and facilities management company, engaged in construction and real estate developments and facilities management since property development is a multidisciplinary, dynamic and risky enterprise; characterized by its complexity and inherent uncertainty (Gehner, 2008), the company is positioned in such a way to enhance quality delivery of mass housing in the federal capital territory. According to Ratcliff and Stubbs (1996, p. 280), “risk is the very business of property development, and uncertainty the prevailing climate within which development takes place.” The seven key features which define complexity in development process are; property markets, long-term trends, the event sequence, economy, actors, the site and government (Fisher, 2015).

Quality Mass housing is another issue of concern in public provision of housing in Nigeria. Mass housing schemes in Nigeria have been described as poor in terms of design, quality and desired function (Ajanlekok, 2012). The recurring poor quality mass housing has been attributed to absence of a clear knowledge of the characteristics, needs and preferences of the target consumer. These often lead to development of housing schemes that are not content specific and therefore unable to give satisfaction to resident. For there to be sustained improvement in housing, units must not be designed in isolation of the overall housing layout. The design process in this case would have to holistically address the concept of housing as a system, which includes a protected place for dwelling, a place for social expression and an avenue for communal interaction.

A recent study of housing situation in Nigeria put existing housing stock at 23 per 1000 inhabitant. Housing deficit is put at 15 million houses (Mabogunje 2017) while N12 trillion will be required to finance the deficit. Land Value and rents, on the other hand, have grown ahead of general inflation. Making matters worse, the composition of land for sale and rent on the market has been inexorably shifting towards very expensive home (Nubi, 2018). This is basically due to inadequate funds for housing within the existing spatial structure. This  necessitated the need to examine the impact of Abuja Property Development Company on quality delivery of massing in Kuje area council of Abuja.

1.2       Statement Of Research Problem

The problems of housing shortage grow worse by the day in many developing nations including Nigeria. Conceivably, a major trait of housing crisis notable in urban centers in most developing nations is that of inadequate supply relative to demand (Olotuah, 2000). Recent studies carried out in Nigeria have confirmed the inadequacy of urban housing (Omojinmi, 2010; Olanrewaju, 2011; Olotuah 2012; Olujimi and Bello 2018 and Ankeli, Dabara, Agidi, Oyeleke & Oladimeji 2015). The low and the medium income group who constitute the bulk of the population in the country are the worst hit as policies of successive governments in the country has not improve the lot of those in these income groups. In most urban centers, the problem of housing is exacerbated due to the incidence of massive rural-urban drift, which has been occasioned by the total neglect of the rural areas in terms of infrastructural development, the poor economic conditions of the rural inhabitants among others.

The greater proportion of the urban population generally lives in squalor, and in sub-standard and poor housing that is situated in deplorable conditions and an insanitary environment (Olotuah and Taiwo, 2015). This assertion shows that the population of the urban dweller that requires to be accommodated outnumbered the available urban housing and infrastructure. Kumo (2015), opined that Nigeria need 17 to 20 million housing units to address the current housing deficit in the country while Olotuah and Taiwo, (ibid) concluded that, housing need in Nigeria increases by the day, whereas the vast majority of the population lacks the wherewithal to make effective demand on housing.

Housing delivery system according to Agbola (1998) involves a complex process that flows in stages and in a sequential series to produce a housing unit or units. This process requires the careful and proper combinations of resources as land, labour, capital and other building materials to achieve the desire product (housing). The major players in the Nigeria housing industry sector are the private and public subsectors, with the private housing subsector producing more than 85% of the total housing stock in the country. The public housing subsector has performed below average in this area due to government policy summersault and the over bearing role of politics in public housing delivery, unrealistic and uncoordinated housing programme projections, inadequate knowledge of the nature, scope and dimension of the general housing problems of the country. However, the need for public and private sectors synergy in solving housing problems in Nigeria which give birth to the Public Private Partnership was recently realized. Hence this research will examines the impact of Abuja Property Development Company on quality delivery of mass housing in Kuje.

1.3       Aim and Objectives of the Study

1.3.1    Aim

The aim of this project is to assess the impact of Abuja Property Development Company in the quality delivery of mass housing in Kuje.

1.3.2    Objectives

The Specific objectives of this study include the following

1. To examine the effectiveness of mass housing policy on housing delivery in the study area.
2. To assess the impact of Abuja property development in Mass housing delivery in the study area
3. To identify the relationship between Abuja Property Development company and quality mass housing delivery in the study area

1.       Research Questions
2. How effective is the mass h1ousing policy on housing delivery in the study area?
3. What is the impact of Abuja property development in Mass housing delivery in the study area?
4. What is the relationship between Abuja Property Development company and quality mass housing delivery in the study area?

1.5       Significance of the Study

The study reflects the impact of Abuja Property Development Company in the delivery of quality mass housing Abuja, the Federal Capital Territory. The results of this research will be a awaken call to improved performance of government and to strengthen further the provision of housing stocks within the Nigeria, as such It also provides the rationale for developing an effective housing policy framework towards achieving sustainable urban development in Nigeria.

The results of this study will help the policy-makers and executors to know the relevance of private estate developers in the provision of affordable and quality mass housing so as to avoid the pitfalls or gray areas inherent in partnering and providing enabling environment for their effective operation. 

Theoretically, the study will serve as a contribution to knowledge regarding the impact of Abuja Property Development Company or other private property developers in the implementation or provision of quality mass housing on housing delivery in Nigeria and Abuja in particular. More so, it serves as a reference material for administrators and policy-makers at all levels of government.

1.6       Scope of Study

The study focused on the assessment of the impact of Abuja Property Development Company in the delivery of quality mass housing in Kuje. It will also evaluate the implementation of the programme in housing delivery in the FCT between years 2009 to 2020.

1.7       Limitation of the study

There are several constraints encountered during the course of this research. These constraints include:

Non Availability of Data: Non availability of adequate data which played a major limitation to this write up because of non-cooperative attitude of some respondents who were not willing to give information and data needed to aid research.

Time: There was not enough time to extend the study beyond the present scope in order to make detailed investigation of all the aspects of the study.  General unwillingness of some respondents to fill the questionnaire provided for the research made it difficult to gather data needed for this research study at the most appropriate time.

1.8       Definition of Terms

Housing: Housing is defined as the process of providing functional shelter in a proper setting within a neighborhood supported by sustainable maintenance of the built environment for the day- to-day living and activities of individuals and families within the community (FRN,2006).

Mass Housing: This refers to a form of housing provision in which houses are built in large number or quantity in a particular area.

Housing Delivery Programme: Housing programmes, are specific strategies usually initiated to increase the housing stock in a country. They are instruments for implementing housing policies.

Housing Delivery System: The housing delivery system involves a complex process which flows in stages and in a sequential series to produce a housing unit or units (Agbola, 1998).

Public Private Partnerships: Wallace, (1998) defined public-private partnerships as arrangements where development is undertaken with a combination of not-for-profit, private and public participations of programs.

Quality Delivery: quality delivery according to Onion (2000) mean given out something that is up to standard, mental or moral attributed, which can be used when describing the nature, condition or property of that particular thing.

1.8       Historical Background of the Study Area

1.8.1    Abuja Property Development Company

Abuja Property Development Company is a Property and facilities Management Company, engaged in construction and real estate developments and Facilities Management. APDC, conceive, design, build and Manage commercial and residential properties within the FCT. They also provide Pre and post contract Consultancy services to customers; from Architectural designs to Engineering, Mechanical Structural and Electrical, and Quantity Surveying and Estate agency services. The close connection with the FCTA enables them to facilitate development related approvals which is expedites to the delivery of their projects and services.

1.8.2    Abuja

It was in 1976 that Federal Military Government led by Late General Murtala Mohammed enacted Federal Capital Territory Act (FCT) established Abuja after it has been chosen to be the administrative capital of Nigeria and with solely administrative functions. This was after the failure of Lagos due to the problems of inadequate land space for future expansion, terrible traffic congestion, poor drainage, acute housing shortage and associated costs, unbearable ethnic influence etc. The planned period for the transfer was to be completed in 1986. However, it was on 12^th December, 1991, that the final movement of Federal capital to Abuja became a reality. Abuja is located in the geographical centre of Nigeria (Figure 1.1) and lying between latitudes 6o 45’ and longitudes 7o 39’ north of the equator. The land of approximately 8,000 square kilometres was carved out from the then neighbouring states of Kwara, Niger and Plateau to serve as the FCT and the Federal Capital City (FCC) to constitutes about 250 square metres. From its designed capacity the FCC will contain 3.2 million people when the development of the city is completed, however, the Abuja population has exploded to 6 million with less than 50% of development attained. The government vested all the land in FCT in the Federal Government of Nigeria. The government also created Federal Capital Development Authority (FCDA), as its agency responsible for the spatial planning and development of the FCT.