Housing development finance through cooperative societies: The case of Ogbomoso, Nigeria
International Journal of Housing Markets and Analysis
ISSN: 1753-8270
Article publication date: 10 August 2010
Abstract
Purpose
The purpose of this paper is to investigate the contribution of cooperative societies to housing finance for the urban low income group in Ogbomoso, Oyo state of Nigeria. This is with a view to determine the effectiveness of the societies' lending as a means of solving the housing problem among the low income group in Nigeria.
Design/methodology/approach
Questionnaires were administered to 120 members of eight societies of four cooperative unions selected through a random sampling technique. In total, 15 members who had benefited from the loan were surveyed in each of the societies. Data were analysed with the use of frequency distribution, percentage and measure of cooperators satisfaction index (CSI).
Findings
The results showed that 52 per cent of responding members had financed the development of their houses to completion stage, while 28 per cent had their houses still under construction. The index of satisfaction (CSI) on each attribute of “affordability”, “transaction cost” and “collateral” is higher than the aggregate satisfaction on the loan. In addition, the level of satisfaction on a cooperative loan with a CSI of 3.77 is far above average (2.50) and greater than the level of satisfaction on National Housing Fund (CSI of 2.07), which is far below average. It was also discovered that membership of cooperative societies cuts across all occupations and is open to all interested members of the community irrespective of sexual or academic status.
Practical implications
The paper concludes that, with the popularity and effectiveness of cooperative loans in the study area, the government should encourage and integrate the initiative to evolve an efficient and effective national housing policy.
Originality/value
This is one of the few studies on housing development finance conducted through a non‐institutional source, particularly in the Nigerian context.
Keywords
Citation
Oluwole Oyewole, M. (2010), "Housing development finance through cooperative societies: The case of Ogbomoso, Nigeria", International Journal of Housing Markets and Analysis, Vol. 3 No. 3, pp. 245-255. https://doi.org/10.1108/17538271011063906
Publisher
:Emerald Group Publishing Limited
Copyright © 2010, Emerald Group Publishing Limited