FG Launches Affordable Housing Drive Through Cooperatives and Digital Finance

The Federal Government is rolling out a new plan to tackle Nigeria’s housing deficit using cooperative societies, digital finance, and a proposed Cooperative Bank of Nigeria. The initiative falls under the Renewed Hope Cooperative Reform and Revamp Programme announced on Thursday, May 21, 2026.

Minister of State for Agriculture and Food Security, Aliyu Abdullahi, who supervises Cooperative Affairs, said the reform will position cooperatives as key vehicles for affordable housing and economic inclusion.

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

Through cooperative housing systems, members can pool resources, cut costs, boost bargaining power, access group financing, and create real pathways to home ownership. The minister pointed to global examples where housing cooperatives have driven urban renewal, reduced homelessness, and expanded affordable ownership.

A major part of the plan is establishing the Cooperative Bank of Nigeria. The bank will focus on underserved Nigerians, especially informal sector workers, and fund cooperative housing schemes, mortgages, infrastructure, and community projects.

Unlike traditional banks, it will run on a cooperative ownership model designed to serve members directly.

Abdullahi stressed that Africa’s cooperative housing system needs strong digital infrastructure to work in today’s economy.

The FG plans to digitize cooperative operations nationwide. This will improve transparency, financial management, credit access, and investor confidence. Digital platforms will also simplify mortgage repayments, project monitoring, and member verification.

The housing push will prioritize:
– Women and youth
– Persons with disabilities
– Farmers and rural communities
– Informal sector workers
– Low-income earners and other vulnerable groups

Housing and Urban Development Minister Muttaqha Darma said cooperative housing is one of the most practical answers to Africa’s housing deficit. He added that tech-driven finance will streamline mortgage administration and open housing access for both formal and informal sector workers.

Saheed Adelakun, Founder of Nigeria Integrated Social Housing Cooperative Ltd., criticized the old Public-Private Partnership model. He’s pushing for a “Public-Private-People Partnership” where intended homeowners are directly involved in projects.

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

Hannatu Mershak, President of the Cooperative Federation of Nigeria, noted that the federation oversees more than 50,000 cooperatives with over 30 million members. She urged governments, banks, and private investors to partner more closely with cooperatives to close Nigeria’s housing gap.

The FG is betting on cooperatives plus digital finance to make home ownership reachable for millions of Nigerians priced out of the market. If the Cooperative Bank launches and digitization succeeds, mortgage access could expand dramatically beyond salaried workers.