EVALUATING THE EFFECTIVENESS OF HOUSING COOPERATIVES AS A SOLUTION FOR AFFORDABLE HOUSING IN NIGERIA
Main Article Content
Abstract
Nigeria confronts one of the most severe housing crises in sub-Saharan Africa, with a housing deficit estimated at 14.9 to 28 million units, annual housing production below 100,000 units, and over 58 percent of urban residents living in substandard conditions. Both public housing programmes and private mortgage finance have proved structurally incapable of reaching the low- and middle-income majority. This paper evaluates housing cooperatives as a third-sector alternative, drawing on a qualitative analysis of secondary data comprising government reports, peer-reviewed literature, policy documents, and case studies from Nigeria and six international contexts (Germany, Singapore, Ethiopia, Kenya, Rwanda, and Vienna). Anchored in Social Capital Theory (Putnam, 2000), Institutional Theory and Sustainable Development Theory (WCED, 1987), the analysis finds that Nigeria's cooperative sector comprising approximately 82,460 registered societies with over 1.4 million formal members demonstrates meaningful but severely underutilised capacity for affordable housing delivery. More than 52 percent of cooperative loans are already directed toward housing-related purposes, yet only 27.2 percent of members achieve their housing objectives. Five enabling conditions are identified as critical for cooperative housing effectiveness: adequate social capital, a specific legal framework, affordable land access, dedicated financial architecture, and strong governance capacity. All five are currently deficient in Nigeria. Comparative evidence demonstrates that targeted reform including a dedicated Cooperative Housing Act, a Cooperative Housing Finance Facility, and public-private-cooperative partnerships could substantially close the gap between cooperative potential and performance. The paper contributes to the growing literature on community-led housing in sub-Saharan Africa and generates actionable policy recommendations for Nigeria's housing sector.
Downloads
Article Details
Section
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Addis Ababa University (AAU). (2025). Cooperative housing affordability challenges: Impact of urban land administration practices [Doctoral dissertation, Addis Ababa University]. AAU Electronic Theses and Dissertations. https://etd.aau.edu.et/items/97041c8d-5c07-4661-8aa1-3395faa7c149
Advisory Center for Affordable Settlements and Housing (ACASH). (2025). Urban housing affordability and housing policy dilemmas in Nigeria. https://www.acash.org.pk/topics/urban-housing-affordability-housing-policy/
Akinmoladun, O. I., & Oluwoye, J. (2007). Urban housing supply: Cooperative societies as the third way. University of Lagos Journal of Housing, 1(1), 1–20.
Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101. https://doi.org/10.1191/1478088706qp063oa
Centre for Affordable Housing Finance in Africa (CAHF). (2024). Addressing housing affordability in Nigeria through incremental approaches. https://housingfinanceafrica.org/
Davis, J. E. (2010). The community land trust reader. Lincoln Institute of Land Policy.
DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147–160. https://doi.org/10.2307/2095101
Federal Ministry of Housing and Urban Development (FMHUD). (2025). National Housing Data Technical Committee report. https://fmhud.gov.ng/read/3685
Federal Ministry of Housing and Urban Development (FMHUD). (n.d.). Minister's statement on housing deficit. https://fmhud.gov.ng/read/3290
First World Communities Ltd. (2022). Our story. https://www.firstworld-communities.com/our-story/
Frontiers in Sustainable Cities. (2023). Land acquisition policy and practice for cooperative housing scheme in Bahir Dar, Ethiopia. Frontiers in Sustainable Cities, 5, Article 1234620.
Guardian Nigeria. (2023, October 8). Nigerians still burdened by huge housing deficit 63 years after. https://guardian.ng/property/ nigerians still burdened by huge housing deficit 63 years after
Housing Cable. (2024). Why Nigeria's housing deficit quadrupled in three decades. https://housingcable.ng/2024/05/16/why-nigerias-housing-deficit-quadrupled-in-three-decades/
International Co-operative Alliance (ICA). (2015). Cooperative identity, values and principles. https://www.ica.coop/en/cooperatives/cooperative-identity
International Poverty Reduction by Results (IPRJB). (2003). Housing cooperative models in Ruai Sub-County, Kenya. European Journal of Business and Strategic Management. https://iprjb.org/journals/index.php/EJBSM/article/download/2230/2570/6368
Iiste. (2023). Housing delivery challenges in Nigeria. Current Economics and Research, 15(3). https://iiste.org/Journals/index.php/CER/article/viewFile/61319/63303
Jiburum, U., Nwachukwu, M. U., Mba, H. C., Okonkwo, C. N., & Okeke, D. C. (2021). Determinants of public housing affordability for large income diversity groups in Abuja, Nigeria. SAGE Open, 11(3). https://doi.org/10.1177/21582440211045079
Lincoln, Y. S., & Guba, E. G. (1985). Naturalistic inquiry. SAGE Publications.
NES Group. (2024). Bridging the housing and urban development divide. https://www.nesgroup.org/researchdocument/bridging-the-housing-and-urban-development-divide
Ndubueze, O. J. (2009). Urban housing affordability and housing policy dilemmas in Nigeria [Doctoral dissertation, University of Birmingham]. https://etheses.bham.ac.uk/id/eprint/298/1/Ndubueze09PhD.pdf
North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge University Press.
NUS Law. (2020). Singapore public housing: A model of social engineering (Working Paper 2020/014). National University of Singapore. https://law.nus.edu.sg/apcel/wp-content/uploads/sites/3/2020/06/014_2020_LyeLinHeng.pdf
Onuoha, J. C. (2000). An appraisal of the co-operative movement in Nigeria. Journal of Co-operative Development, 1(1), 1-12.
Ostrom, E. (1990). Governing the commons: The evolution of institutions for collective action. Cambridge University Press.
Putnam, R. D. (1993). Making democracy work: Civic traditions in modern Italy. Princeton University Press.
Putnam, R. D. (2000). Bowling alone: The collapse and revival of American community. Simon & Schuster.
Quigley, J. M., & Raphael, S. (2004). Is housing unaffordable? Why isn't it more affordable? Journal of Economic Perspectives, 18(1), 191-214. https://doi.org/10.1257/089533004773563494
Regulatory Review. (2023). Germany's success in community development. https://www.theregreview.org/2023/10/04/wong-germanys-success-in-community-development/
Saegert, S., & Benitez, L. (2005). Limited equity cooperatives. In J. E. Davis (Ed.), The community land trust reader (pp. 369–385). Lincoln Institute of Land Policy.
SPUR. (2017). Could Germany's co-developed urban housing be a model for the Bay Area? https://www.spur.org/news/2017-09-21/could-germanys-co-developed-urban-housing-be-model-bay-area
UN-Habitat. (2002). Housing cooperatives: A contribution to housing in developing countries. United Nations Human Settlements Programme.
UN-Habitat. (2011). Housing and slum upgrading. https://unhabitat.org/topic/housing
UN-Habitat. (2016). World Cities Report 2016: Urbanization and development. United Nations Human Settlements Programme.
United Nations. (2015). Transforming our world: The 2030 Agenda for Sustainable Development (A/RES/70/1). https://sdgs.un.org/2030agenda
Veriva Africa. (2024). Unveiling the abysmal state of Nigeria's public housing system. https://www.verivafrica.com/insights/unveiling-the-abysmal-state-of-nigerias-public-housing-system
World Bank. (2021). Nigeria housing sector assessment: Improving access to affordable housing. World Bank Group.
World Commission on Environment and Development (WCED). (1987). Our common future. Oxford University Press.
WU Wien. (2011). Housing cooperatives and social capital (SRE Discussion Paper 2011/02). Vienna University of Economics and Business. https://www-mlgd.wu.ac.at/sre-disc/sre-disc-2011_02.pdf