Cooperative Housing Scheme for Low-Income Earners in the Informal Sectors and Federal Mortgage Bank of Nigeria

Abstract

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 the deposit and income requirements usually demanded by the institution responsible for housing provision in Nigeria. This study is aimed at determining the effect of government support to workers’ housing cooperatives on the effort of 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 used survey research method to collect data from the Enugu State workers by the questionnaires. The population of the study was 16,449 out of which 579 was drawn through Coachranch's finite population correction formula. Data collected from the field were analyzed 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 provision of cooperative housing Nigeria. Additionally, government support to low income earners housing cooperative has significant effect on efforts at provision of cooperative housing in Nigeria. The study recommended that government should grant alllow income earners in cooperatives seeking to acquire housing unit for first time tax exemption, and also should focus on loan support of low income earners that are yet to own a house and those who owns housing unit should be exempted.