AN ASSESSMENT OF ECONOMIC VARIATIONS AND ITS EFFECTS ON REAL PROPERTY MANAGEMENT IN NIGERIA

AN ASSESSMENT OF ECONOMIC VARIATIONS AND ITS EFFECTS ON REAL PROPERTY MANAGEMENT IN NIGERIA

BACKGROUND OF STUDY 

The Nigerian civil war, which lasted from 1967 to 1970, disrupted many areas of the economy. If we omit the civil war experience, cyclical fluctuations in oil receipts exercised a significant impact beginning in 1974, according to Okongwu (1986). The petroleum sector has grown in importance and dominance in terms of contributions to government income, rising from 1% in 1960 to more than 80% now (http://www.datallytics.com/).  At the same time, partly due to the vagaries of oil, we have now forcefully rediscovered what we had long known: that this over-reliance on crude petroleum exports, this essential replacement of the previous composite vector of "traditional" primary exports with a single, though more lucrative, crude oil vector, does not provide secure foundations for pursuing deliberate development policy.

The major source of our economic difficulties was our over-reliance on petroleum and its byproducts. Furthermore, the advantages from the oil boom were not intelligently exploited due to a lack of vision. Our economy became import and consumer orientated at some point in time. As a result, when the oil glut occurred, we were caught off guard. The oil glut is a scenario in the oil market in which the supply of oil vastly outnumbers the demand. We became an indebted nation, falling from grace to grass and from boom to bust (http://www.datallytics.com/). Our economic troubles were exacerbated by mishandling of our foreign reserves and public cash, as well as excessive government recurrent expenditure. 

1.2 STATEMENT OF THE PROBLEM 

Government economic recovery initiatives have exacerbated the market scenario in a short period of time. Such policies include the 1982 Austerity Measure, the 1985 Economic Emergency Programme, the 1986 Structural Adjustment Programme, the Second Tier Foreign Exchange Market, an increase in local fuel prices to generate more revenue for the government, the prohibition of certain imported goods without providing a reasonable period of time to adjust, and so on. These measures caused significant changes in every area of the economy.

The research looked at the implications of these developments on real estate management, with a particular emphasis on the Onitsha property market. 

1.3 RESEARCH QUESTIONS 

The researcher intends to examine the following questions:

1. What is the origin of economic problems in Onitsha as they affect real property management?
2. What are the major causes of economic changes in Onitsha?
3. Is there any relationship between the real estate economy and the general business economy?
4. What are the effects of economic changes on real property management in Onitsha?
5. Is there specialist in real property management?
6. What are the major functions and roles of this specialist?
7. What measures are to be taken by Estate Surveyors operating in a variable economy to achieve positive results?
8. What procedures should be followed in real property management practice?

1.4  PURPOSE OF STUDY 

Nigerian economy has been unstable since her independence in 1960 due to some factors. Instability in the economy has been provoking some changes in every sector. It is the purpose of this study to critically analyze the effects of economic changes on real property management with focus on Onitsha property market.

It is also the intention of the study to guide Estate Surveyors operating in a variable economy on the possible ways to cope with the situation to achieve positive results.

1.5  OBJECTIVES OF STUDY 

The specific objectives of this research are:

1. To investigate the major cause of economic problems in Onitsha as they affect property market;
2. To suggest possible ways to revamp Onitsha real property market;
3. To establish the relationship between the real estate economy and the general business economy;
4. To ascertain the effects of economic variations on real property management in Onitsha;
5. To encourage Estate Surveyors to always analyze the real property market to enable them manage economic fluctuations and crises;
6. To emphasize the need for employing professional Estate Surveyors in both private and public sectors to offer advice and render property management services in order to make the life of the real property to last longer especially, at this time of economic problems. 

1.6  HYPOTHESIS FORMULATION 

For the purpose of verification and possible confirmation, this hypothesis is formulated and postulated as follows:

HO: Economic Variations do not have impact on real property management.

HI:  Economic Variations have impact on real property management.

1.7  RELEVANCE OF STUDY 

Having identified the major causes of economic problems in the study area, recommendations were made to boom the economy.

The study shall encourage the Estate Surveyors and Valuers in the study area to be conversant with the market to enable them manage the effects of economic changes on real property management.

The study shall also enlighten the public to appreciate and patronize the professional services of Estate Surveyors and Valuers which are not very well known.

1.8  SCOPE OF STUDY 

The study traced the origin of the economic problems in Nigeria and suggested possible solutions. The policies of the government to revamp the economy led to economic changes. The effects of these economic variations on real property management especially, in Onitsha property market, are vividly emphasized. The relationship between the real estate economy and the general business economy was critically examined. The work reviewed the functions and responsibilities of a property manager; and also, the real property management procedures were demonstrated practically.

1.9  LIMITATIONS OF STUDY 

Some factors militated against the success of this work, though the researcher endeavoured to accommodate them. Thus, some of the constraints inherent in the course of carrying out the research include, among others, the peculiar nature of real property market. It is not like commercial markets where one can easily come face to face with both the buyers and sellers to get information he wants. In real property market, information are not easily circulated among Estate Surveyors. Vital information required by the researcher from some respondent Estate Surveyors were not collected due to pressure of work and other commitments facing them during the time the researcher required those information.

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