FG Moves to Unlock Affordable Housing Through Cooperatives, Digital Finance

The Federal Government on Tuesday unveiled fresh plans to drive affordable housing delivery through cooperative societies, digital finance, and strategic partnerships. This move is in response to the growing housing crisis in Nigeria, where millions of low and middle-income Nigerians remain locked out of home ownership due to rising housing costs, weak financing structures, and limited access to mortgages. They can't afford homes because the costs are too high.

Speaking at the 2026 Cooperative Housing Summit Africa (CHOSA) in Abuja, top government officials and stakeholders emphasized the need for innovative solutions to address the housing shortage. Minister of State for Agriculture and Food Security, Senator Aliyu Sabi Abdullahi, disclosed that the government was pushing reforms to reposition the cooperative sector as a major vehicle for affordable housing and financial inclusion. He said it's essential to make these changes to help low-income Nigerians.

Abdullahi revealed plans for the establishment of a Cooperative Bank of Nigeria, designed to provide accessible financing for cooperative housing schemes, mortgages, infrastructure development, and community projects. The proposed bank would operate under a cooperative ownership structure and focus on underserved Nigerians, especially workers in the informal sector. It's clear that the government wants to help these workers.

"The cooperative sector is a sleeping giant," he said. "Through cooperative systems, we can democratise access to housing, expand financial inclusion, and build resilient communities." He didn't say what would happen if they fail to achieve this goal, but it's obvious that it won't be good.

The government is also digitising cooperative operations nationwide to improve transparency, financial management, access to credit, and investor confidence. Digital finance platforms would simplify mortgage repayment systems, housing project monitoring, and cooperative member verification. This is a significant step because it will make it easier for people to get mortgages. Earlier, the Minister of Housing and Urban Development, Dr. Muttaqha Darma, represented by Samuel Pemi, Director of Public Buildings and Housing Development, said cooperative housing remained one of the most practical solutions to Africa's growing housing deficit.

He didn't elaborate on why it's the most practical solution, but it's likely because it's cost-effective.

He noted that technology-driven finance would play a major role in improving mortgage administration and housing access for citizens in both formal and informal sectors. Darma reaffirmed the ministry's commitment to strengthening housing finance systems and supporting sustainable urban development across Nigeria and Africa. They're committed to making a change, and it's clear that they won't give up easily.

Convener of the summit and Founder of Nigeria Integrated Social Housing Cooperative Ltd. (NISH), Dr. Saheed Adelakun, faulted the traditional Public-Private Partnership (PPP) model, insisting that affordable housing delivery must now embrace a "Public-Private-People Partnership" approach. According to him, intended homeowners must be directly involved in housing projects for affordability to be achieved. He said it's crucial that people are involved in the process.

President of the Cooperative Federation of Nigeria (CFN), Mrs Hannatu Mershak, said the federation currently supervises more than 50,000 cooperatives with over 30 million members nationwide. She stressed that cooperatives had become vital instruments for savings mobilisation, affordable financing, and community development. Mershak urged governments, financial institutions, and private investors to deepen collaboration with cooperatives to address Nigeria's housing shortage. They should work together to find a solution.

The summit, themed "Catalysing Adequate Housing for All Through Cooperatives," drew policymakers, developers, financiers, fintech firms, and housing experts from across Africa. As the government moves to unlock affordable housing through cooperatives and digital finance, the effectiveness of this approach in addressing the country's housing crisis will become clear over time. It's not certain what the outcome will be, but it's likely that it will make a difference.

The success of this initiative will depend on the ability of the government to effectively implement these reforms and collaborate with stakeholders in the cooperative and financial sectors. The government can't do it alone, so they need to work with others. As Nigeria continues to grapple with its housing crisis, the use of cooperatives and digital finance may provide a new path forward for addressing the needs of low and middle-income Nigerians. It's possible that this approach won't work, but it's worth trying.