Estate Management

The Effect of Environmental Pollution on Real Estate Development

The Effect of Environmental Pollution on Real Estate Development


The effect of environmental pollution on real estate development. Environmental pollution is one of the problems affecting real estate development that needs quick attention. Due to many industries located in Nigeria, there is much discharge of gaseous effluent and waste disposal. Also, there is the increase of automobiles which generates fumes; smoke from generating plant which is on the increase polluting the environment. This research uses Warri, Delta state as a case study. The research examined the effect of environmental pollution on real estate development. It also looks at the extent to which it affected the entire property and other people living around the area and suggested possible solutions.




Warri is one of the well-known oil-producing cities in Delta State Nigeria. Warri is one of the prominent towns in the Niger Delta endowed with great natural resources.

Oil is the primary base of Nigeria’s economy and is also the cause of major environmental and social problems in the Niger Delta region of Nigeria. Over the years, oil exploration, production, and refinement in Nigeria have resulted in various environmental and ecological problems that range from oil spills, gas flares, habitat destruction, air and water pollution, and land degradation. Also, a major cause of oil pollution in that same region is to a great extent, from the activities of illegal oil bunkering and illegal refineries operated indigenes and some highly placed individuals in government. The chemical properties of spilled oil often affect the productiveness of soil and pollute water bodies, thereby causing irreparable damage to agricultural lands as well as aquatic bodies. Gas flaring is a significant environmental and economic problem in Nigeria emits approximately 70 million metric tons of carbon dioxide annually (US EIA 1999). This adversely affects the socio-economic activities of local communities, which are primarily based on fishing and farming (Egunjobi, 1993). It is estimated that in one region alone in the Niger Delta, flaring is statistically likely to cause 49 premature deaths, 5000 respiratory illnesses among children and some 120,000 asthma attacks, and 8 additional cases of cancer each year ( Environmental Rights Action and the Climate Justice Programme). Another major issue ravaging Nigeria is water pollution.

According to Anukam (1997), the main source of water pollution in Nigeria has to do with forestry activities. Deforestation and improper soil tillage practices increase the concentration of soil particles that make their way into water bodies and in turn increases their sediment loads. The discharge of industrial waste materials into bodies of water is another major source of pollution in Nigeria.
Discharges from industries such as petroleum, mining, iron and steel, pharmaceuticals, and textiles among others have increased the contents of sulfates and nitrates in water bodies and have altered properties such as color and odor (Adelegan 2004). A large percentage of Nigerians derive most of their domestic and drinking water from ponds, streams, and shallow wells. Hence, water pollution is a major health concern that places the health of about 40 million people at risk of diseases such as cholera, dysentery, diarrhea, and typhoid (Anukam 1997, Adelegan 2004, Orubu 2006).

Domestic and Industrial Waste has also constituted a major source of environmental pollution in Nigeria.
The improper disposal and ineffective management of municipal waste create major environmental and aesthetic problems in most of Nigeria’s urban areas. Due to overpopulation and the creation of slums, most municipal areas currently generate more waste than they can manage (Ogbonna and Ekweozor 2002).


Irrespective of the numerous environmental laws enacted to protect the environment, environmental degradation has continued unabated. Oils pillage and gas flaring activities are still commonplace in Nigeria, especially in the oil-rich Niger Delta. Gas flaring has also continued unabated irrespective of the Nigerian government’s directive to end flaring by 2010 (Kalu, 2009). Thousands of barrels of oil have been split into the environment through our oil pipelines and tanks in the country. Enforcement of environmental regulations is still poor as industries continue to discharge untreated wastewater into the environment. Heaps of refuse are always a constant sight to behold in Nigerian streets and markets.


This research work aims to examine the effect of environmental pollution on real estate development in Delta state.

However, the objectives are as follows:

To identify and examine the impact of environmental pollution on real estate development in Warri.

To make suggestions/recommendations on how to address/reduce pollution of the environment.

To identify the issues of environmental pollution in real estate development.


The inadequate funding has restricted the carrying out of complete and comprehensive research on the effect of Environmental Pollution on Real Estate in all the oil-producing states in Nigeria. Also, there is the problem of distance coverage to visit all the communities within the study area for data collection. Based on this, Warri in Delta state will be the setting of the study and all information gathered shall be generalized in the context of the research report.


This research is carried out to find answers/suggestions to the following questions.
To what extent has the Nigerian government program towards the reduction of the effect of pollution on real estate been actualized?
How has environmental pollution affected the value of the real estate and as such discourage investors from real estate development?
What are the solutions to the challenges of environmental pollution on real estate development?


Warri is one of the well-known oil-producing cities in the Delta State of Nigeria. Warri is one of the prominent towns in the Niger Delta endowed with great natural resources. Although it is not the capital tertiary of Delta state (Center of Activity). It is well populated and as well as such, has much commercial activity are carried out within the area. This research work shall be centered on Warri as the study area since it is used as the case study of this research.


This research work was limited by the reluctance of residents to give all information required for this research work. Also, the availability of finance requirements to visit the entire community of Warri limits this work to an extent. Much time was not devoted to this research work. With this limitation, it can not be fully stated with confidence that complete coverage was given to the project as demanded.


The following are the significance of this study:

The outcome of this research will educate the general public on the issues and the adverse effect of environmental pollution in real estate development.

The findings from this study are going to necessitate measures that will lead to demand for improved implementation of environmental pollution control laws in Nigeria.

This research will also serve as a resource base for other scholars and researchers interested in carrying out further research in this field subsequently. If applied, it will go to an extent to provide a new explanation to the topic.


EFFECT: is a change that results when something is done or happens; an event, condition, or state of affairs that is produced by a cause.

POLLUTION: Pollution is the introduction of contaminants into the natural environment that cause adverse change.
Pollution occurs in different forms, air, water, soil, radioactive, noise, heat, thermal, and light.

ENVIRONMENT: The total of all surroundings of a living organism, including natural forces and other living things, which provide conditions for development and growth as well as of danger and damage.

ENVIRONMENTAL POLLUTION: Is defined as the release of toxic harmful substances into the environment by their natural force or man and his resources. There are four major types of environmental pollution this include;
Air pollution
Land pollution
Water pollution
Noise pollution

REAL ESTATE: Is property comprised of land and the buildings on it as well as the natural resource of the land including uncultivated flora and fauna, farmed crops and livestock, water and minerals. It can be grouped into three broad categories based on its use residential, commercial, and industrial.

DEVELOPMENT: This is the process in which someone or something grows or changes and becomes more advanced.

DELINEATION: Is the act of representing something or describing it.

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