Paper Title
Cooperative Housing Scheme for Low-Income Earners in the Informal Sectors and Federal Mortgage Bank of Nigeria
Osita B. Obodoechi
Law, Leadership, and Social Sciences

This study assessed the cooperative housing scheme for low-income earners in the informal sector and the Federal Mortgage Bank of Nigeria. In most developing countries of the world,the low-income earners often do not have the ability to meet thedeposit and income requirements usually demanded by the institutionresponsible for housing provision in Nigeria. This study is aimed at determiningthe effect of government support to workers’ housing cooperatives on the effortof providing housing cooperatives in Enugu State. It is also aimed at assessing the ability of the workers to save part of their incomes with housing corporations,in the efforts at provision of cooperative housing in the state. The study usedsurvey research method to collect data from the Enugu State workers by thequestionnaires. The population of the study was 16,449 out of which 579 was drawn throughCoachranch's finite population correction formula. Data collected from the field wereanalyzed using descriptive statistics, while three hypotheses were tested using “One Way Analysis of Variance (ANOVA). The findings revealed that housing cooperatives have significant effect on efforts at provisionof cooperative housing Nigeria. Additionally, government support to low income earners housingcooperative has significant effect on efforts at provision of cooperative housingin Nigeria. The study recommended that government should grant alllow income earners in cooperatives seeking to acquire housing unit for first time taxexemption, and also should focus on loan support oflow income earners that are yet to own a house and those who owns housing unit should beexempted.

Housing, cooperative housing schemes, low income earners, Federal Mortgage Bank


Housing is paramount to human existence as it ranks among three basic fundamental needs of man. Housing, literally defined, means building or shelter in which people live, a dwelling, a refuge (Adedeji et al., 2012). The provision of housing has been of great necessity to man. As a unit of the environment, housing has profound influence on the health, efficacy, social behaviour, satisfaction and general welfare of the community. It is a reflection of the cultural, social and economic values of a society and one of the best historical evidences of the civilization of a country (Olutuah, 2000). It is in this regard that housing is seen as “an instrument for political stability, economic prosperity, social welfare and household well-being and an economic, physical product which requires various parallel and consecutive processes, services, suitable resources and relevant systems inorder to create and maintain quality, sustainable living environments for human settlements (Shuab, 2014).

Housing is a set of durable assets which account for a high proportion of a county’s wealth and on which households spends a substantial part of their income (Adedeji & Olutuah, 2000). Provision of this basic need for teeming population of Nigerians has remained a mirage (Ede, 2019). Although studies have shown that the problem of housing is universal, however, that of Nigeria is alarming. Nigeria has a housing deficit of 22 million houses (FMBN 2018). This is not unconnected to rapid population explosion, rural urban migration, poor mortgage financing, large segment of the population involved in non-functional informal sector, high cost of building materials, high cost of land, inadequate housing policies and programmes slow process of town planning, etc. (Lewin, 1981, in Berko, 2015).


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