EFFECT OF GOVERNMENT URBAN DEVELOPMENT PROJECT ON LAND VALUES IN RELATION TO IBADAN CITY CIRCULAR ROAD
By Bukky Alarape Olalekan(MNIVS, RSV) and Faloye Solomon Bamidele (FNIVS, RSV),
Government has always been central to the organization, stability, and progress of societies. A government is the system by which an organized community—in many cases a state or nation—is led and administered, with the contributions of the legislative, executive, and judicial arms to create, implement and enforce laws. Beyond law enforcement, governance encompasses policy formulation and execution to ensure social order, economic stability, and welfare improvement. At its core, the purpose of government is to establish and uphold rules in order to fulfill the desires and expectations of the community it represents.
Throughout history, different forms of government—democracy, communism, dictatorship, monarchy, and republic—have sought to achieve this purpose in varying ways. Presently, Nigeria operates a democratic government, which emphasizes representation and participation of citizens in decision-making. Within this framework, governments frequently embark on large-scale projects that have far-reaching social, economic, and environmental implications.
One of the most impactful types of government undertakings is the urban development project. These projects often involve major infrastructure such as roads, railways, airports, seaports, housing schemes, industrial parks, power facilities, and public utilities like hospitals and schools. They are generally designed to benefit the public, promote economic activities, and stimulate growth in both rural and urban areas (Akinyemi, 2019). For example, at the national level, projects like the Abuja–Kano expressway or the Second Niger Bridge reshape regional connectivity and enhance economic prospects. At the state and local levels, initiatives such as the Lekki Free Trade Zone in Lagos or the new isolation centers during public health emergencies contribute to immediate needs and long-term development.
Urban development projects are, however, double-edged swords. On the one hand, they create opportunities for wealth, employment, and social advancement. On the other hand, they may also bring challenges like environmental degradation, displacement of communities, and disruption of traditional livelihoods. For instance, a forester might view a new road project as destructive to endangered tree species; a wildlife scientist might see it as reducing animal habitats and food chains; while a geographer or soil scientist may interpret it as a cause of land fragmentation, erosion, and water pollution (Oduwaye, 2015). Farmers, both peasant and mechanized, often perceive such projects as threats to arable land needed for crop production and animal husbandry. In contrast, estate valuers and developers welcome such projects as catalysts for new markets, higher property values, and expanded opportunities for artisans, engineers, builders, and technicians to apply their expertise.
The Ibadan Circular Road Project
The Ibadan Circular Road project is a flagship urban infrastructure initiative of the Oyo State Government. It is designed as a 110-kilometer, four-segment bypass encircling the city, aimed at decongesting the heavily trafficked city center and promoting orderly expansion. This ambitious project, when completed, will not only ease transportation within the metropolis but also serve as an industrial and residential corridor with world-class facilities. Features of the road are expected to include solar-powered communication masts, flyovers, and estate developments along its stretch, turning it into a modern highway with transformative potential.
The key rationale for the project lies in Ibadan’s rapid urbanization and economic growth. As one of the largest and most populous cities in Nigeria, Ibadan faces significant challenges in terms of traffic congestion, haphazard settlement growth, and inadequate infrastructure. The circular road is envisioned as a solution that will open up the peripheries, stimulate investment, and integrate outlying communities into the urban economy (Ayoade, 2020). By creating new economic corridors, the project is expected to reposition Ibadan as a more livable and competitive city in the twenty-first century.
Impacts on Land Value
One of the most immediate and visible impacts of the Ibadan Circular Road is its effect on land values. The project has increased the desirability of adjoining communities, improved accessibility, and attracted both public and private investment. The principle behind this is simple: improved infrastructure reduces travel time and enhances connectivity, making locations more attractive for residential, commercial, and industrial purposes (World Bank, 2017).
Formerly distant areas such as Elebu, Olorunsogo, and Kolapo Ishola GRA have become more accessible, causing property values to rise steeply. Plots of land that were once affordable are now priced several times higher. Rental demand in these areas has also grown, as professionals and middle-class families prefer to live in communities that combine modern infrastructure with relative proximity to the city center. Estate developers and realtors have capitalized on this, marketing new housing estates and commercial spaces that appeal to upwardly mobile residents.
In essence, the circular road has transformed previously peripheral lands into valuable real estate. What was once agricultural land or semi-rural property has now become prime urban land, ushering in new waves of investment and speculative buying. This illustrates how government projects can act as triggers for urban expansion and land market dynamism.
Positive Impacts on Land Value
1. Increased Accessibility
The circular road reduces travel times considerably. Neighborhoods that were once regarded as “too far” from the city are now within comfortable commuting distance. This convenience raises the attractiveness of such neighborhoods to both buyers and tenants, leading to what can be described as a property value “soar.”
2. Economic Integration
By connecting peripheral economies with the main city, the project integrates small businesses, artisans, and traders into the larger urban market. Farmers in nearby villages, for instance, now have better access to city markets, while city residents gain easier entry to suburban recreational and residential zones.
3. Stimulation of Investment
Infrastructure is a magnet for investment. Improved roads attract banks, schools, shopping malls, and hospitality businesses, all of which depend on accessibility. Consequently, the circular road has encouraged land banking, property development, and increased rental demand in its vicinity.
4. Creation of New Economic Hubs
As the circular road opens up fresh corridors, new industrial and residential hubs are emerging. These hubs are expected to evolve into modern suburbs with opportunities for employment, education, and commerce.
Negative Impacts and Controversies
Despite its potential benefits, the Ibadan Circular Road project has not been free of challenges.
Property Displacement and Loss: Entire families have been displaced as their homes and lands were demolished to make way for construction. For many, relocation has meant financial hardship, loss of ancestral property, and difficulty in finding affordable housing alternatives (Ogunleye, 2021).
Disputes over Land Acquisition Boundaries: The initial acquisition corridor was pegged at 150 meters, but reports of expansion beyond these limits have caused panic and mistrust among residents. Many fear losing more land than was originally declared, and such uncertainty generates resistance and disputes.
Inadequate and Delayed Compensation: While the government has initiated compensation payments, the process has often been slow and incomplete. Many displaced residents claim they have not received fair or timely compensation, leaving them vulnerable. This situation has generated petitions, protests, and legal disputes.
Environmental Concerns: The project has raised environmental questions, particularly regarding air and noise pollution during and after construction. Some residents complain that their once quiet neighborhoods now face constant noise from heavy-duty trucks and dust pollution, affecting quality of life (Ajibola, 2018).
Crime and Social Disruption: Large-scale construction projects sometimes lead to increased crime rates, with unemployed youths or opportunistic actors taking advantage of construction activities to engage in theft and antisocial behavior.
The Ibadan Circular Road project is part of a larger master plan to reposition the city in response to rapid population growth, migration, and economic diversification. As Ibadan continues to expand, there is a pressing need for better road infrastructure, housing layouts, and economic hubs to prevent unplanned sprawl. The circular road is a bold step in that direction, but its controversies highlight the complex relationship between urban development, land value, and social equity.
It underscores the importance of comprehensive urban planning and community engagement. If stakeholders—including local residents, landowners, environmentalists, and estate developers—are not properly consulted, the project risks alienating communities it intends to benefit. Equally, if compensation is not handled with transparency and fairness, government credibility suffers and resistance grows.
From a developmental perspective, the project reveals the dual nature of megaprojects. They can transform cities, attract global investors, and stimulate progress, yet they can also marginalize vulnerable groups, disrupt traditional communities, and trigger social grievances (UN-Habitat, 2020). Hence, a balance must be struck through proactive planning, effective policy frameworks, and the adoption of sustainable urban development principles.
Conclusion
The Ibadan Circular Road project exemplifies how government-led urban development can reshape land values, influence settlement patterns, and redefine the economic geography of a city. By opening up new corridors, reducing travel times, and integrating peripheral areas, the project has undeniably elevated property values and encouraged investment. However, it has also generated controversies surrounding displacement, land acquisition disputes, compensation, and environmental effects.
In the long run, the project’s success will depend not only on its engineering completion but also on how effectively the government addresses these social and economic challenges. The ultimate lesson is that while infrastructure projects can catalyze urban growth, they must be implemented with sensitivity to human welfare, fairness in compensation, and sustainability in planning. Only then can they achieve their purpose of fostering inclusive and balanced urban development.
ESV Bukky Alarape Olalekan is a land officer at the Oyo State Local Government Service Commission- Egbeda Local Government Area of Ibadan.
ESV Faloye Solomon Bamidele is a Director in Works & Estate Department, Forestry Research Institute of Nigeria, Ibadan.