ABSTRACT
This study was carried out to investigate the roles of property development corporation in the Economic development of Nigeria.
The finding was based on the followings. What are the sources of finance of Ogun State Property and Investment Company (OPIC)? How does the State Government assists Ogun State Property and Investment Company (OPIC) in performing its function meaningfully to the public? What are the major problems confronting Ogun State Property Investment Company (OPIC) in developing the State Economy? What are the roles of property development corporations in Nigeria?
During the course of this study, a similar questionnaire of thirty-three (33) items was administered in fifty to the respondents.
The method of data analysis used in this study was simple percentage and frequency counts. Then the percentage was used in comparing the various responses and the result of the study led to some conclusions which are as follows:
i. The sources of finance of Ogun State Property and Investment Company (OPIC) are sales of land and interest from investments.
ii. The state government assists Ogun State Property and Investment Company (OPIC) by securing land for them.
iii. Financing is one of the problems confronting Ogun State Property and Investment Company (OPIC).
iv. Ogun State Property and Investment Company (OPIC) play roles in making housing for all Nigerian through provision of affordable plots of land to the public.
As a result of this findings, useful recommendation were made on the roles of property development corporation in the Economic development of Nigeria which include that Government should be ready to assist the corporation in terms of finance by given them grants, Ogun State Property and Investment Company (OPIC) should give out the houses developed in her estates in affordable prices to the public so that it can increase the standard of living.
TABLE OF CONTENT
CHAPTER ONE
1.1 Introduction
1.2 Historical Background of the Study
1.3 Statement of the Problem
1.4 Purpose of the Study
1.5 Significance of the Study
1.6 Research Questions
1.7 Delimitation of the Study
1.8 Limitation of the Study
1.9 Definition of Operational terms
CHAPTER TWO
2.1 Introduction
2.2 What is Property Development?
2.3 Objectives of Property Development
2.4 Housing
2.5 Problem of Insufficient Housing
2.6 Roles of Non-Profit Housing Association
2.7 Housing and Economic and Social Development
2.8 The Role of Ogun State Property and Investment Company
in the Economic Development of Ogun State.
CHAPTER THREE
3.1 Research Methodology
3.2 Research Design
3.3 Population
3.4 Samples and Sampling Techniques
3.5 Research Instrument
3.6 Validity of the Research Instrument
3.7 Data Analysis
3.8 Problems Encountered
CHAPTER FOUR
4.1 Presentation and Analysis of Data
CHAPTER FIVE
5.1 Discussion of the Findings, Conclusion and Recommendation
5.2 Discussion of the Results
5.3 Conclusion
5.4 Recommendation
5.5 Suggestion for Further Studies
References
Appendix
CHAPTER ONE
1.1 INTRODUCTION
Property development is a process of land acquisition with the aim and purpose of constructing buildings and other structures for accommodation whether for residential, commercial and industrial uses. The issue of housing has been acclaimed worldwide to be man’s second most essential basic need after food. Land has continued to play and is still playing a significant role in man’s evolution. It is not a coincidence that food, shelter and clothing which are three essentials that sustain mankind, also have some linkage to land.
Land constitutes a significant index for man’s wealth, and as economic activities have assumed more sophistication overtime, land has continued to play a central role in their development.
Property development is a viable venture since the properties developed by the corporations or agencies appreciate over the years and investment level. It becomes a vital functions towards the economic and social progress of man.
Property development corporations are those bodies or agencies which are mainly established for the purpose of providing accommodation be it for residential, commercial or industrial use and almost all the states or capitals in Nigeria have their own corporations in operations. For example, in Lagos State we are having a property development corporations there, which is Lagos State Property Development and Investment Corporations and likewise in Oyo State which is Oyo State Property Development and Investment Corporations.
Economic development on the other hand is the increase in the standard of living in a nation’s population with sustained growth from a sample, low-income economy to a modern, high-income economy. Also, if the local quality of life could be improved, economic development would be enhanced. Its scope includes the process and policies by which a nation improves the economic, political, and social well-being of its people.
Economic development can also be considered as a static theory that documents the state of economy at a certain time. A country’s economic development is related to its human development, which encompasses among other things, health and education. These factors however closely related to economic growth often go together.
It is a common knowledge that a company with the role of property development in the economic development of Nigeria will be expected to find solution to improve the standard of living, management will be hoping to achieve the primary desires objectives of the company and the standard of operation of the company when the staff of the company have good quality. However, this research study is to identify, know the process, functions and the roles of property development corporations in the economic development of Nigeria.
1.2 HISTORICAL BACKGROUND OF THE STUDY
Ogun State Property and Investment Company (OPIC) was established in 1st September, 1984 by the government of Ogun State, Nigeria. It was established to develop landed properties vested in the corporation and was conceived as a new experiment in the running of government concern and has been empowered by its enabling law to carry on business as property developers. It is mandated to explore fully the potentials and opportunities, prevalent in landed properties in Ogun State in particular, and in deed, in all parts of the Federal Republic of Nigeria.
Ogun State Property and Investment Company (OPIC) was also established to perform duties of a planning authority on its estates to the exclusion of any other authorities and to promote companies which may be seen directly or indirectly calculated to benefit the corporation. It is empowered to manage housing and industrial estates vested in it, right from its inception, the State Military Administration resolved that Ogun State Property and Investment Company (OPIC) should function strictly on commercial lines, also to be self-sustaining and generate the necessary revenue for the funding of the development projects of the corporation. The corporation was established with special power to ensure its economic viability and profitability.
Since 1988, Ogun State Property and Investment Company (OPIC) has been able to finance itself and pay her staff salaries. For example, in 1984, the corporation when established was reinbursed to the take off with only one million naira and since has refunded it back and can now boast of over fifteen million naira modern large and sophisticated 5-storey building as its headquater.
1.3 STATEMENT OF THE PROBLEM
The followings are the problems confronting the property development
Corporation:
– Inability of the workers to perform their duties effectiveness
– Insufficient land
– Insatiable land / environment
1.4 PURPOSE OF THE STUDY
This study is aimed at investigating the Roles of Property Development Corporations in the Economic Development of Nigeria with a particular reference to the Ogun State Property and Investment Company (OPIC).
In this respect, objectives of this study includes:
– To identify the prospects and problems of the property development in the economic development of Nigeria.
– To identify the roles played in the economic development of Nigeria
– To familiarize with the history and background of the existence of the property development corporation.
1.5 SIGNIFICANCE OF THE STUDY
The result of this project will be of great value for:
The property development corporations in Nigeria and business sector as a whole, likewise the general public, because of the opinions oppressed in this project will make the property development corporations to become aware of public expectations of them.
Then, institution of higher learning would benefit from it and in particular business students and copies of this research project will be kept in some libraries for other users who might be interested in the work.
1.6 RESEARCH QUESTIONS
The research study should be able to answer the following questions:
1. What are the sources of finance of Ogun State Property and Investment Company (OPIC)?
2. How does the State Government assists Ogun State Property and Investment Company (OPIC) in performing its function meaningfully to the public?
3. In what way does Ogun State Property and Investment Company (OPIC) assist the government?
4. What roles does Ogun State Property and Investment Company (OPIC) play in making housing for all Nigerians possible by the year 2000 A.D?
5. What is the importance of Title Deeds prepared by Ogun State Property and Investment Company (OPIC) to people?
6. What are the prospects of Ogun State Property and Investment Company (OPIC) in developing the state economy?
7. What are the major problems confronting Ogun State Property and Investment Company (OPIC) plc and what are the ways by which they can be alleviated?
8. What are the Roles of Property Development Corporations in Nigeria?
9. How does the roles played by property development corporations influence the economic development of Nigeria?
1.7 DELIMITATION OF THE STUDY
This project is limited to Ogun State Property and Investment Company (OPIC) plc, since the functions, administration, and all the agencies under property development are the same in Nigeria.
1.8 LIMITATION OF THE STUDY
This project work is limited by the following:
i. TIME FACTOR: The time given to carry out the research is too short and for the limited period there will not be chances of traveling from one place to the other or from one state to the other.
ii. FINANCIAL CONSTRAINTS: This is another problem which will cause a barrier to the study in the sense that the cost of traveling from one company to the other and purchasing of minutes for browsing will be too expensive.
1.9 DEFINITION OF OPERATIONAL TERMS
Agency: They are bodies established primarily for the purpose of providing accommodation be it for residential, commercial or industrial uses.
Bungalows: It contains small house of only one-storey buiding
CollateralSecurity: This includes property e.g. stocks as security for repayment of loan Commercialization of government projects: Inviting public to subscribe for government projects.
Estate: Is a piece of property in the form of land
Feasibility Study: Examining the practicability of a proposed project (i.e. building and construction).
Finance: The management of money or something related to money.
General savings: It is the ordinary savings without the contention of saving towards buildings a house.
Hectare: Measure of area in the metric system 10,000 square metres.
Initial Deposit: Installment (deposit)
HOSS: Home Ownership Savings Scheme
Investor: Is a person who puts in money for savings or building purposes.
Layouts: Arrangement, plan design of a printed page concerning a group of buildings.
Lease: This is contract by which the owner of the land or building (the leaser) agrees to let another (the lessee) has the use of it for certain time for a fixed money payment ( called rent)
MortgageServices: This is the issuance of loans to people wishing to build their own houses.
OPIC: Ogun State Property and Investment Company / Corporation.
Plots: These are pieces of land (usually undeveloped)
Projects: Planned construction or buildings on land.
Propertydevelopment: This is the process of land acquisition with the purpose of constructing buildings and other structures for accommodation be it for commercial, industrial and residential uses.
Regionalgovernment: Government at the regional level.
Rent: Income or money realized on land or building
Staffquarters: Constructed buildings for workers of an organization
Targetsavings: Regular savings for the purpose of acquiring a land or house
Westernregion: Composition of Ogun, Ondo, Oyo and Bendel States created in 1967 during General Gowon’s regime, we0073tern region was created before the states