Analysis of the Effects of Road Provision Budgetary Allocations on Property Investment Returns in Selected Areas of Abuja, Nigeria

Abstract

The Nigerian government faces infrastructure funding challenges. Consequently, interested in knowing the possible areas that spending will be of more effects in order to ascertain government's benefits derivable from such effects in terms of increased revenue generation through tax. This is for the purpose of gaining the capacity to provide or maintain new or existing infrastructure respectively. Therefore, this paper analysed the effects of budgetary allocations (budgetary expenditures) on property investment returns in Abuja Nigeria. It aims at determining the level of impact of government road provision budgetary expenditures on property investment returns. In order to achieve the aim of the study, quantitative method research design was adopted for data collection. The data obtained was analysed quantitatively. Regression analysis was used to determine the increase in property values (rental and sales) as a result of budgetary expenditure on road provision. Findings show that budgetary expenditures (road reconstruction)lead to increase in property values in the areas thereby, having positive effect on property investment returns. This serves as the basis of guidance to government decisions on the allocation of more funds inroad provision budgets. The potential for capturing the rise in returns of real estate investments due to budgetary expenditures on road provision that serves as an alternative funding source through property tax is estimated.