Roads remain the major tool for facilitating the mode of moving goods and people across the country to accelerate economic and business activities. Modern businesses, industries, trades and general activities depend on transport and transport infrastructure, the movement of goods and services from place to place becoming vital and inseparable aspects of global and urban economic survival. This study examined the implications of highway development and expansion on urban residents in Abeokuta city. Data was obtained from the administration of questionnaires to 545 residents of Abeokuta city, who were randomly selected. Simple descriptive statistics and Analysis of Variance (ANOVA) were employed. The findings show that the traffic flow was found to be very smooth and free due to the wide and good condition of the highway; the residents stated that highway expansion allow increase in inflow of new residents, businesses and puts pressure on the existing houses thus there is increase in value of houses as a result of increase in demand; residents believe that the expansion of roads has opened up the area for more businesses which now causes high cost effect on rent and leases in the study area. The research suggests that all road designs, construction and rehabilitation work should be handled by competent engineers who must give guarantee on the roads for a specified period. The proper functioning of an urban area depends on an efficient transportation network; this contributes to the economy of Abeokuta directly through influx of people.
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