Federal Government unveils cooperative housing reform to boost affordable housing through digital finance and partnerships

The Federal Government has unveiled an ambitious cooperative housing reform programme aimed at expanding affordable home ownership through cooperative societies, digital finance systems, and strategic public-private partnerships across Nigeria.

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The Minister of State for Agriculture and Food Security and Supervising Minister for Cooperative Affairs, Aliyu Abdullahi, announced the initiative in a statement issued by the ministry on Thursday, describing cooperative societies as critical instruments for economic inclusion and sustainable housing delivery.

Abdullahi said the Renewed Hope Cooperative Reform and Revamp Programme was designed to strengthen cooperatives as platforms for affordable housing, wealth creation and social development.

“Cooperatives remain one of the most powerful vehicles for economic inclusion, community mobilisation, self-help development, social solidarity, and shared prosperity,” Abdullahi stated.

The minister explained that the proposed cooperative housing system would enable members to pool resources, reduce construction and financing costs, improve bargaining power and gain collective access to mortgage facilities and housing infrastructure.

According to him, cooperative housing models have delivered remarkable results in several countries by reducing homelessness, supporting urban renewal and improving access to affordable home ownership.

As part of the sweeping reform agenda, the Federal Government plans to establish a Cooperative Bank of Nigeria to provide financing for cooperative housing schemes, infrastructure projects and mortgage facilities.

Abdullahi said the proposed bank would operate under a cooperative ownership structure and focus on underserved groups, particularly workers in the informal sector who often struggle to access traditional banking services.

The minister also stressed the importance of digital transformation in modernising Nigeria’s cooperative ecosystem.

“Africa’s cooperative housing ecosystem cannot operate effectively in the modern era without robust digital infrastructure,” Abdullahi said.

He disclosed that the government would digitise cooperative operations nationwide to improve transparency, financial management, project monitoring and access to credit facilities.

The digital finance systems, according to the ministry, are expected to simplify mortgage repayments, strengthen member verification processes and enhance investor confidence in cooperative housing projects.

The programme will prioritise vulnerable and underserved groups, including women, youth, persons with disabilities, farmers, rural dwellers, informal sector workers and low-income earners.

Abdullahi also urged African governments to introduce stronger regulatory frameworks, simplify land administration systems and create incentives capable of attracting affordable housing investments.

The Minister of Housing and Urban Development, Muttaqha Darma, described cooperative housing as one of the most practical solutions to Africa’s growing housing deficit.

Darma noted that technology-driven finance systems could transform mortgage administration and significantly expand housing access in both urban and rural communities.

Also speaking, the Founder of Nigeria Integrated Social Housing Cooperative Ltd., Saheed Adelakun, criticised the traditional Public-Private Partnership model and advocated a “Public-Private-People Partnership” framework that directly involves intended homeowners in housing projects.

“We need houses that low and middle-income earners can truly afford. Government, developers, cooperatives, and homebuyers must work together,” Adelakun said.

The President of the Cooperative Federation of Nigeria, Hannatu Mershak, said the federation currently oversees more than 50,000 cooperatives with over 30 million members nationwide.

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Mershak called for deeper collaboration among governments, financial institutions and private investors to accelerate affordable housing delivery and address Nigeria’s widening housing shortage.