APPLICATION OF COST-BENEFIT ANALYSIS TECHNIQUE IN VIABILITY APPRAISAL OF COMMERCIAL COMPLEXES IN MINNA, NIGERIA

Abstract

Investors rely on Cost-Benefits analysis to guide their investment decisions. The need to determine environmental and social costs versus benefits of a proposed commercial property development is critical to help decide on the best option to adopt. Despite this recognised benefit of Cost-Benefit analysis, there has been little focus on CBA of commercial property investments in Minna Metropolis. The research aim to prepare a Cost - Benefit Analysis of commercial complexes in Minna, Nigeria. Enphasises are given to neighbourhoods of Kpakungu and Maitumbi, Minna. One Hundred and Fifty (150) questionnaires were retrieved out of the One Hundred and Sixty Four (164) that were administered. The information gathered were presented through the use of tables. Data gathered were analysed with the use of Relative Importance Index (RII) and Costto -benefit Ratio. The study showed that factors that influences demand for commercial

premises in the study area include location which has the highest responses with RII of

0.0226 followed by social amenities with RII of 0.0126 then infrastructure/transportation

and

neighbourhood quality with RII of 0.0066 was ranked 3 rd . Highest percentage of respondents believed huge return on investment is important and a driver for most private estate developers participation in commercial complex development in the study area The major group that patronizes commercial complexes in the city, are the middle income earners. The study major constraint in developing commercial complexes in Minna is high construction cost. The study recommends, that the State Government should provide good road networks as well as affordable and efficient transport systems as this would encourage both private investors/developers and those occupying the commercial complexes spaces.