Socio-Economic Impact of Urban Renewal Projects on the Livelihood of Residents in Gusau Metropolis

Abstract

Urban renewal projects contribute significantly to improving the quality of urban infrastructure as well as the living conditions of urban dwellers. However, they often result in the displacement of low-income settlements, disrupt informal economies, and alter existing social structures. Therefore, understanding how urban renewal projects affect the social and economic lives of residents can provide useful insights for developing appropriate support measures to assist those affected by such projects. However, research on how urban renewal projects affect urban residents in Gusau Metropolis remains limited. The primary objective of this study was to examine the socio-economic impacts of urban renewal projects on the livelihoods of residents in Gusau Metropolis. The sample size of the study consisted of 371 respondents. Data were generated through questionnaires, key informant interviews, and field observations. Quantitative data were analyzed using descriptive statistical tools such as tables and percentages. The hypothesis of the study was tested using Chi-square statistics, while qualitative data were analyzed using Braun and Clarke’s thematic approach and triangulated. The results revealed that road infrastructure, drainage systems, and market development were the major urban renewal projects executed in Gusau Metropolis. The study established that urban renewal contributed to transforming local communities by improving infrastructure and creating job opportunities, particularly in the construction industry for youths. However, displacement, loss of businesses, and weakened community solidarity were also major concerns. Residents adopted different coping strategies, including relocating businesses and borrowing money to sustain their livelihoods. The major intervention provided by the government was cash compensation to some victims of development-induced displacement. The study recommends that the government should provide low-interest loans, grants, economic empowerment programmes such as skills acquisition and vocational training, as well as counselling services for residents affected by urban renewal projects.