The Effect Of Commercial Land Use And Value

Project and Seminar Material for Estate Management

The Effect Of Commercial Land Use And Value


Commercial land use is relatively a new investment opportunity that has enabled people to purchase plots of land and construct homes in Ogui-urban areas of Enugu. This study is an attempt to examine the impact of Commercial land uses on land value in Ogui-urban areas of Enugu City. Four Real Estates of Kirinya, Kakunguru, Lubowa and Naalya were studied. Specifically, the study sought to establish the extent to which Commercial land use has influenced land values, which land tenure system attracts more Commercial land use, how far Commercial land use conforms to the physical planning guidelines and principles and, how Commercial land use has facilitated the distribution of social services in the study area. Primary data were collected using a structured questionnaire and interview guide. Field observations and secondary data supplemented interviews. A total sample of 93 respondents including estate residents, officials of NHCC and Arkright projects limited and local leaders were consulted. Data collected was analysed by using the Statistical Package for the Social Science (SPSS). Descriptive statistics were used in the analysis.

Research findings indicate that Commercial land uses have influenced land values in the areas within and around the estates due to the services and facilities which are extended nearer to the plots. However, this increased the cost of land, which the poor could not afford to buy. Commercial land uses were found to be on mailo land due to the freedom and security of ownership it guaranteed the owner as compared to the leasehold whose ownership is uncertain and the annual premium charges which increase the cost of land in the long run. To a small extent, real estates followed physical planning guidelines as evidenced from the master plan or design layouts, however, it was noted that some people did not know anything about physical planning and equated physical planning master plans to site layouts of building plans. This indicates how physical planning was still unknown by the people, hence the need for community sensitisation.

Finally, the study recommended community sensitisation to improve awareness on planning, government intervention in land markets to control the sky rocketing prices, prior planning by the concerned local authorities before the establishment of the estates, consideration of the low income groups when establishing the estates, close monitoring and supervision of the estates operation to ensure that the prepared master plans are being followed and the promotion of public private partnership to improve services delivery.

Chapter One


Land is a national endowment that can be referred to as the said portion of the earth’s surface, while land use can be described as a way, manner or order in which land is used by people in an area for deterrent purposes. This rings about the need for the demand of commercial land acquisition for economic and business transaction.

Ogui urban is located in the capital city of Enugu state and has a typical urban environment, which is surrounded by major roads and towns some at which include Oni – Asata, Holy Ghost, Ziks Avenue, Okpara Avenue and so on therefore making it accessible for which ever kind of business transaction. As a result, investors tend to exploit commercial land around these areas, which include, artisan, Edinburgh, independence layout new layout, onu-Asata, Obiagu etc. The unique attract a lot of investors who in turn refuse to abide to the enforced planning laws by the central authority. In other words, value in basic economics is detained as the utility or satisfaction which a good or seminar offers for the purpose of this write piece, value mean the worth of an interest in a land or building.

Land use in Enugu was proposed earlier when Enugu was under Anambra state and the use of commercial lands by investors was properly monitored and up till date it is still being monitored but not effective like it used to be in the case investors who migrated into others areas that were not commercial proposed areas tailed to accept the fact that those areas were not purposively commercial proposed areas but were to support commercial activities. This therefore became a treat to the individuals residing in those areas. Ogui urban is a typical example of these areas.

This work is to demonstrate the effects of commercial land use on land value, and I intend to sow this in this work piece.

1.1 Historical Background

Ogui urban is located in the capital city of Enugu state. She deviated from the Affar and got her first paramount Chief in the person of late Chief Augustine Nnamanni who died on the 30th day of October 1993. Ogui did have any chief until 2002 the chief was sworn in he was Chief Oko Michael Mmaduekwe.

Ogui became or got her autonomous community on the 12th day of July 2003. Her culture in enriched with different dances and masquerade. Ogui urban is made up of five villages they include Umuokokwette, Umuabu, Onuatu Onu Asala and Onyke with two local government the Enugu North and the Enugu Central North. She shares a common boarder with her brother Abakpa Nike along the presidential road while the original Ogui dweller reside at Umunevo village. Now a town that accommodate a lot of investors and visitor and student.

1.2 Statement of General Problem

For a long time now; it has been recorded that investors face the problem of investing blinding without knowing the effect on the land value. They do not know the effect of commercializing a land set out for federal values. As such most investors abuse the constitutional provision for land value and in time to come they will be victimized by the execution of government plan on an exploited land. The level of indiscriminate dumping of refuse that brings about environmental bleeder, the congestion of planned building by investors allowing space for the major road and eating into part of the pedestrian path. The increase in the movement of investors accommodates the vandalization of electrical cables, blocking of drainages with refuses

1.3 General Objective

The general objective of the study was to determine the impact of Commercial land uses on land values and physical planning in Ogui urban areas of Enugu City.

1.3.1 Specific Objectives
  1. To establish the effect of commercial land use on land values in the study area.
  2. To establish which land tenure system attracts more Commercial land use.
  3. To establish the relationship between Commercial land use and physical planning guidelines.
  4. To identify how Commercial land use has facilitated the distribution of social services in the study area.

1.4 Research Questions

  1. To what extent does Commercial land use influence land values?
  2. What type of land tenure attracts more Commercial land use?
  3. How far does Commercial land use conform to the physical planning guidelines?
  4. How has Real Estate Development facilitated in the distribution of social service delivery?

1.5 Significance of the Study

Estate development especially by private developers is a new phenomenon in Nigeria. The available information indicates that studies done have mainly concentrated on social facilities in and around public housing estates (Okoth-Ogendo, 1998; Nsamba Gayiira, 1999) with little or no attention given to determining the impact of both private and public Commercial land uses on land value dynamics in Ogui urban areas of Enugu City.

Besides, there is generally an increasing demand for housing in Nigeria and in many other developing countries in the world. World population and specifically Nigeria‟s population has more than doubled over the last few years. It was therefore imperative to assess the role played by the housing estate developers in housing provision. Above all, Nigeria‟s main resource for production, future expansion and development is vested in land, its therefore important to establish the impact of these Commercial land uses on the land values, social service delivery and other land related issues.

1.6 Scope of Study

The development of Ogui Nike was divided into two stages “urban Ogui and Rural” Ogui at the moment rural – Ogui has suffered trickling development while the urban Ogui has been effectively development.

The urban Ogui include the control business city (Atesian, Ogbetle) this scope in focused mainly on the effect of commercial land use.

1.7 Limitation of Study

This research work is limited to some extent by the inconsistency of records as the urban and regional planning authority of Ogui. Some of the officials were not always available to provide or give out the necessary map diagram. It was also limited to some extent by inadequacy of finance.

1.8 Organization of the Study

The study comprises of five chapters. Chapter one consists of the background to the study, statement of the problem, purpose of the study, objectives, research questions, significance, limitation of the study, delimitation of the study, basic assumptions, definitions of key terms and organization of the study. Chapter two comprises of literature review theoretical and conceptual frameworks. Chapter three deals with research methodology, covering research sampling, procedures, research instruments and their validity and reliability, procedures for data collection and data analysis. Chapter four comprises of findings and discussions which were generated by the study. Chapter five presents summary, conclusions and recommendations.

Chapter Five

Conclusion and Recommendations

5.1 Conclusion

The purpose of the study was to determine the impact of Commercial land uses on land value dynamics in Ogui urban areas of Enugu City. During the study, four housing estates were studied: Kakunguru and Kirinya (owned by Arkright projects–a private estate developer), Lubowa and Naalya (managed by the government through NHCC). Estate residents, local leaders, estate developers, Local Government Officials and ministry officials were interviewed.

Research findings indicate that majority of the respondents agreed that Commercial land use had influenced land values in the area. This was due to increased cost of land and the cost of living in the area; the available social facilities/services like water, power and roads had also increased the demand for plots of land in the area. Well- organized and planned permanent settlements have been built thus increasing the aesthetic value of the area.

The study established that all real estates studied had been constructed on mailo land. This implies that Commercial land use is favoured on mailo land due to the freedom of ownership it guarantees the owner mainly in form of land title. It is therefore implied that security of tenure under mailo land is one of the main reasons why it is preferred for Commercial land use. Other reasons given to explain the preference of mailo land tenure for estate development were private ownership of land, lack of government intervention and fewer limitations on development programs to be undertaken by the land owner.

In this study the majority of the respondents indicated that housing developments in the estates had been guided by physical planning guidelines. Evidence of physical planning in terms of master plans, land sub division layouts were observed in some estates of Kakunguru and Kirinya of Arkright projects. It was noted that physical planning is of great significance in promoting organised human settlements.

The study indicates that several social services/facilities like education facilities, water, health centres, electricity and recreational facilities have been established in the facilities. In addition, real estates had access to roads, which were opened, security is provided in the estates to protect the lives of the people and their properties, collection points for solid waste management were also put in place. Most of these services are benefits from estate development.

All in all, since Commercial land use is still a relatively new event in Nigeria, it is hoped that the provision of social services, physical planning within and around the estates will continue to improve these areas.

5.2 Recommendations

The study puts forward the following recommendations arising from the intended objectives of the study.

  1. The study revealed that 92.8% of the respondents agreed that mailo land tenure attracted most of the estates as compared to the leasehold which was at 4.8%, due to its insecurity of ownership and the undesired annual premium charges. Therefore, it is recommended that the conditions of leasehold be made flexible by reducing on the annual premium charges and also granting assurance of re – owning the land after the lapse of the lease Oguiod in order to facilitate orderly development and attract more developmental projects.
  2. The process and procedure of obtaining land titles under leasehold, which is a security of ownership should be well streamlined and made faster especially under the Kabaka‟s land in order to assure people of the rights to ownership. This uncertainty of ownership on the leasehold tenureship accounts for a number of the slums, which are developed, on this form of land tenure.
  3. Planning is a multi- dimensional profession which addresses issues concerning all sections of people, low, medium and high income, therefore private estates developers should be encouraged or advised to also carter for the low income earners as a way of giving back to the general community in order to avoid the creation of other informal settlements and also to give them a chance to enjoy the improved living environment like, the UN-HABITAT project of Mpumudde women housing project – Jinja implemented by Akright projects Limited.
  4. The study also recommends the promotion of pro-poor planning as a means of poverty reduction, inclusion of the poor, marginalized groups and to achieve a gender balanced approach in development.
  5. There is need for promoting of master plan preparation to act as a guiding tool for land subdivision which has to be approved by the respective planning authorities. The study found out a number of the people in the communities studied did not know what planning is all about, its importance to the development of the estates and how physical planning was different from just having the building plans approved.
  6. The study therefore recommends massive community sensitization on the importance and benefits of physical planning to sustainable development and improved living environment. This is an intervention that requires both the central government and the local government because it is a nationwide concern.
  7. The study also found out some services had been delivered by the private sector, however, not adequately distributed, there is therefore need to strengthen and promote the concept of Public – Private Partnership in service delivery to ensure equitable distribution for services.
  8. Wakiso City council should come out quickly to physically plan and allocate the different land uses to adequately, and properly locate these estate investments and also plan for the low-income category. It‟s also recommended that Wakiso City Council should formulate guidelines for land subdivision and development control to check on the operations and standards of the private real estates.
  9. In Nigeria, land is a free market commodity and the right set the price entirely lies in the hands of the seller and this has therefore forced the price for land on a higher side. There is therefore need for government intervention in the control of land pricing to ensure equitable access to land by all sections of the people in the society.

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