Investment Performance of Local Government Shop Properties in Oke-Ogun Area, Oyo State, Nigeria: Implication for Sustainable Development

Abstract

Local Government property seems to be among the least utilized and optimized resources, this is because the properties owned by the local government are perceived to be free items. The study examined the performance and the drivers of the performance of Local Government (LG) shop properties in Oke-Ogun, Oyo State, Nigeria, to provide information that could enhance the performance of public property for achieving Sustainable Development Goals (SDG 8 - sustainable economic growth & SDG 11 - sustainable cities and communities). Primary data was used for the study which was collected from two groups of respondents (227 property occupiers and 16 property managers who are local government employees). The study adopted a multistage sampling procedure, and the data obtained were analysed using descriptive and inferential statistics. The study covers ten (10) years (2013-2022), encompassing both before and after the recession. The study revealed that the Local Government properties performed with a positive total rate of return of 0.64%, which could be better. It further found that the average rental value for the LG shop properties is N2,714 while the leading drivers of performance are income, occupiers' satisfaction and service delivery. The study therefore recommends improved management of public properties due to low average rental value and low return on investment. This will affect the LG's attempt to contribute her quota financially to reach UN SDGs 8 & 11. It also recommends that the Department of Estate and Valuation of each local government should employ professionally registered Estate Surveyors and Valuers for improved management of public properties and better performance for achieving Sustainable Development Goals.