Experts in the built environment have initiated measures to promote cooperative financing as a solution to fund social housing projects, particularly for low- and middle-income earners who are largely excluded from conventional mortgages in Nigeria.
They emphasized that cooperative societies could become one of the most practical avenues for Nigerians to build homes, noting that formal mortgage penetration in the country remains extremely low compared to housing demand.
Expert Insights from CHOSA Summit
Speaking at the Cooperative Housing Summit Africa (CHOSA), Professor T. Nubi of the University of Lagos highlighted factors that could catalyze adequate housing delivery. He stated, “In reality, many Nigerians already build houses through collective self-help.” He further explained that cooperatives are increasingly vital in housing finance as they address affordability issues, given that commercial mortgage systems in Nigeria remain inaccessible to ordinary workers due to high interest rates.
The Convener, Dr. S.K. Yemi Adelakun, called for unwavering support for cooperative housing financing and overall development aimed at delivering decent and affordable housing at scale to low- and medium-income earners.
Digital Platform and Future Outlook
According to Adelakun, the goal is to establish a digital housing finance platform for capital aggregation, impact investment, transparency, and improved financial inclusion for those currently excluded from the formal mortgage system.
“We will see cooperative societies becoming one of Nigeria’s strongest housing finance alternatives over the next decade — not because they are perfect, but because they fit Nigerian economic realities better than traditional mortgages,” he said.
He maintained that financiers are seeking homebuyers to fund, insurance companies offering competitive group rates for life and general insurance products, and financially robust cooperatives looking for affordable housing options for their members.
Advocacy for Millions of Members
The President of the Cooperative Federation of Nigeria, Mrs. Mershak Hannatu, hinted that the federation has over 30 million members who need advocacy to pool resources together to participate in an affordable housing scheme.
“For many Nigerians, especially civil servants, traders, artisans, and young workers, cooperative housing may prove more realistic than waiting for a fully efficient mortgage market to emerge,” she added.
