Medium‐term property rights and urban poverty in Minna

Abstract

Purpose

The purpose of this paper is to examine the medium‐term tenure option, in capital valuation terms, through an empirical study of 232 households in 39 tenement properties in Barkinsalle and Saukakahuta, two neighborhoods of Minna, Nigeria widely associated with poor households.

Design/methodology/approach

An empirical approach was used. Data were obtained through questionnaires from six real estate firms and 232 households in the study area. The tenancy statuses, rental values, contract rents, terms and durations of tenancies were some of the data elicited.

Findings

Using contemporary valuation techniques it was affirmed that a typical medium‐term lease from 2009 to 2018 would produce substantial capital value between N59,000.00 (US$393.33) and N90,000.00 (US$600.00).

Research limitations/implications

This research is limited only to cases where profit rent advantages are clearly established. The institutional settings needed to sustain leasehold profit rents have to be identified.

Practical implications

Tenants need valuation advice on medium‐term leasehold rights with promises of profit rent advantages. There is need to sensitize both landlords and tenants as to the mutual benefits.

Social implications

Properly harnessed, the capital value amount could support access to micro‐credit, an essential tool for sustainable fight against urban poverty, through some established financial institutions and special public agencies in Nigeria.

Originality/value

No previous study of Minna had verified, quantitatively and empirically, that medium‐term leases under the parameters empirically specified in the paper would produce such substantial capital values.

Citation

Ayodele Olatunji, I. (2010), "Medium‐term property rights and urban poverty in Minna", International Journal of Housing Markets and Analysis, Vol. 3 No. 3, pp. 256-269. https://doi.org/10.1108/17538271011063915