ISSUES AND CHALLENGES OF SERVICE CHARGE ADMINISTRATION IN COMMERCIAL PROPERTIES: A STUDY OF BANEX PLAZA, WUSE II, ABUJA
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Issues and Challenges of Service Charge Administration in Commercial Properties: A Study of Banex Plaza, Wuse II, Abuja.
In the context of Nigeria’s commercial property sector, this study investigates the inefficiencies and disputes in service charge administration at Banex Plaza, a commercial property in Wuse II, Abuja. The research objectives are to identify the plaza’s operational characteristics, assess current administrative approaches to service charges, evaluate their effectiveness in meeting stakeholder needs, and explore the challenges faced by both tenants and property managers in this process. A mixed-methods approach was employed to ensure comprehensive analysis, collecting quantitative data via questionnaires administered to 162 tenants and qualitative insights from interviews with five estate surveyors and direct physical observations of the plaza’s facilities.
The findings indicate that while Banex Plaza offers strong security services and reliable energy supply, it suffers from poor internet connectivity, unreliable elevator operation, and substandard cleaning quality. In addition, the service charge administration processes were found to lack transparency, timely reconciliation of accounts, and active tenant participation. Based on these findings, the study recommends implementing formal budgeting and accounting procedures for service charges, establishing transparent reconciliation mechanisms, enhancing communication channels between management and tenants, and developing standardized frameworks for service charge administration. These measures aim to improve efficiency, accountability, and tenant satisfaction in commercial property management.
In the context of Nigeria’s commercial property sector, this study investigates the inefficiencies and disputes in service charge administration at Banex Plaza, a commercial property in Wuse II, Abuja. The research objectives are to identify the plaza’s operational characteristics, assess current administrative approaches to service charges, evaluate their effectiveness in meeting stakeholder needs, and explore the challenges faced by both tenants and property managers in this process. A mixed-methods approach was employed to ensure comprehensive analysis, collecting quantitative data via questionnaires administered to 162 tenants and qualitative insights from interviews with five estate surveyors and direct physical observations of the plaza’s facilities.
The findings indicate that while Banex Plaza offers strong security services and reliable energy supply, it suffers from poor internet connectivity, unreliable elevator operation, and substandard cleaning quality. In addition, the service charge administration processes were found to lack transparency, timely reconciliation of accounts, and active tenant participation. Based on these findings, the study recommends implementing formal budgeting and accounting procedures for service charges, establishing transparent reconciliation mechanisms, enhancing communication channels between management and tenants, and developing standardized frameworks for service charge administration. These measures aim to improve efficiency, accountability, and tenant satisfaction in commercial property management.
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