Government takes steps to make housing more affordable by leveraging cooperatives and online financial services

The Federal Government has introduced a new plan to increase the availability of affordable housing through cooperative societies, digital finance, and strategic partnerships, acknowledging that traditional mortgage systems are no longer sufficient to address Nigeria's housing crisis.

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This development was announced on Tuesday at the 2026 Cooperative Housing Summit Africa (CHOSA) in Abuja, where government officials and stakeholders highlighted the challenges faced by low and middle-income Nigerians in accessing home ownership due to rising housing costs and limited financing options.

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Senator Aliyu Sabi Abdullahi, Minister of State for Agriculture and Food Security, revealed that the government is implementing reforms to reposition the cooperative sector as a key driver of affordable housing and financial inclusion, with plans to establish a Cooperative Bank of Nigeria.

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The proposed Cooperative Bank of Nigeria will provide accessible financing for cooperative housing schemes, mortgages, infrastructure development, and community projects, operating under a cooperative ownership structure and focusing on underserved Nigerians, particularly those in the informal sector.

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According to Abdullahi, the cooperative sector has the potential to democratize access to housing, expand financial inclusion, and build resilient communities, describing it as a "sleeping giant" that can be leveraged to achieve these goals.

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The government is also digitizing cooperative operations nationwide to improve transparency, financial management, and access to credit, with digital finance platforms simplifying mortgage repayment systems, housing project monitoring, and cooperative member verification.

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Dr. Muttaqha Darma, Minister of Housing and Urban Development, represented by Samuel Pemi, emphasized the importance of cooperative housing in addressing Africa's growing housing deficit, noting that technology-driven finance will play a crucial role in improving mortgage administration and housing access.

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Darma reaffirmed the ministry's commitment to strengthening housing finance systems and supporting sustainable urban development across Nigeria and Africa, recognizing the need for innovative solutions to the housing crisis.

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Dr. Saheed Adelakun, Convener of the summit and Founder of Nigeria Integrated Social Housing Cooperative Ltd. (NISH), argued that the traditional Public-Private Partnership (PPP) model is no longer effective and that a "Public-Private-People Partnership" approach is necessary to achieve affordable housing delivery.

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According to Adelakun, intended homeowners must be directly involved in housing projects to ensure affordability, stressing the need for collaboration between government, developers, cooperatives, and homebuyers to create truly affordable housing options.

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Mrs Hannatu Mershak, President of the Cooperative Federation of Nigeria (CFN), highlighted the significance of cooperatives in addressing Nigeria's housing shortage, with the federation currently supervising over 50,000 cooperatives and 30 million members nationwide.

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Mershak urged governments, financial institutions, and private investors to deepen their collaboration with cooperatives to address the housing shortage, recognizing the vital role that cooperatives play in savings mobilization, affordable financing, and community development.

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The 2026 Cooperative Housing Summit Africa (CHOSA), themed "Catalysing Adequate Housing for All Through Cooperatives," brought together policymakers, developers, financiers, fintech firms, and housing experts from across Africa to discuss innovative solutions to the housing crisis.