IMPACT OF HOUSING COOPERATIVE SOCIETIES ON ECONOMIC GROWTH
Department of Economics
Housing problems in Nigeria are multi-dimensional. They
occur both in the urban and rural areas. They are qualitative,
quantitative, psychological and socio-cultural in nature. These problems
are consequences of the inability and ineffectiveness of both the
public and private sectors to meet the housing needs of the populace. As
a result of this, any lasting solution to the Nigerian housing problem
requires a multi- faceted approach. Various policies aimed at
alleviating these housing problems have been formulated and implemented.
They have met with varying degrees of success. After identifying the
main causes of housing problems in Nigeria, this research examines the
Cooperative housing Societies concept and its impact to the growth of
the economy. The essential features of the concept are discussed and an
evaluation is made of its impact on the housing sector in selected area
of study based on various criteria. Some of these are: aims and
objectives, modalities for funding, peculiarities of implementation,
planning imperatives and levels of success. The research concludes by
relating the experiences of these countries to the contemporary Nigerian
housing situation and determining the applicability of the cooperative
housing concept given the nation’s socio-economic environment.
1.1 Background to the Study
defined, co-operative housing as a society that co-operatively owns a
group of houses or flats in. which each member participates actively in
all matters concerning the estate. Sazama (2000) observes that,
cooperative housing is a society where members/residents jointly own
their buildings, democratically control them and receive social and
economic benefits accruable from living in and owing them
co-operatively. Housing co-operative is a pragmatic and cost effective
means of home ownership. Victor and Bilyaminu (2002) said that,
co-operative housing has been tested in many nations where it has been
used, to varying degrees of success and to address housing problems,
therefore modifying this concept to suit Nigerians socio-cultural and
socio- economic peculiarities will result in renewed hope for the
average Nigerian in his quest to attain home ownership as well as
reliving him from his poverty trap.
A housing cooperative, is a
legal entity, usually a corporation, which owns real estate, consisting
of one or more residential buildings; it is one type of housing tenure.
Housing cooperatives are a distinctive form of home ownership that have
many characteristics that differ from other residential arrangements
such as single family home ownership, condominiums and renting.[
Retrieved 2 May 2015]
The corporation is membership-based, with
membership granted by way of a share purchase in the cooperative. Each
shareholder in the legal entity is granted the right to occupy one
housing unit. A primary advantage of the housing cooperative is the
pooling of the members’ resources so that their buying power is
leveraged, thus lowering the cost per member in all the services and
products associated with home ownership.
Another key element is
that the members, through their elected representatives, screen and
select who may live in the cooperative, unlike any other form of home
ownership. Housing cooperatives fall into two general tenure categories:
non-ownership (referred to as non-equity or continuing) and ownership
(referred to as equity or strata). In non-equity cooperatives, occupancy
rights are sometimes granted subject to an occupancy agreement, which
is similar to a lease. In equity cooperatives, occupancy rights are
sometimes granted by way of the purchase agreements and legal
instruments registered on the title. The corporation's articles of
incorporation and bylaws as well as occupancy agreement specifies the
The word cooperative is also used to
describe a non-share capital co-op model in which fee-paying members
obtain the right to occupy a bedroom and share the communal resources of
a house that is owned by a cooperative organization.
1.2 Statement of Problem
to the significance of cooperative society, the international labour
organization has to show the fact that; "in current National Development
Plan, various measures are adopted to broaden the productive base of
the economy as a strategy to achieving a strong and virile economy,
enhance availability of improved technology and extensive services
through cooperative society activities.
The above policy
statement clearly shows that the status and prominence given currently
achieve and enjoyed by this relatively organization in our society is
agent of change in the nation economy.
This understanding is
therefore, aimed at obtaining and observing the activities of
cooperative society in Jeromi Ifelodun Local Government Lagos State
through federal agencies to alleviate poverty, create wealth and ensure
food security through cooperative society's scheme, the problem of
ignorance, the formation of cooperative societies in Jeromi Ifelodun
Local Government Lagos prevails hence, the need to research on".
the light of these problems, the researcher is therefore boarded and
wants to probe into the activities of housing co-operative societies to
know whether they are contributing towards the economic development and
growth of the country.
The researcher also intends to investigate
the impact of housing co-operative societies on economic growth by
identifying the above mentioned phenomenon and to know the prospect and
problems encounted by housing co-operative so cities in their attempt to
develop an improve the economy.
1.3 Objectives of Study
This research work has the following objectives which will be achieved by the research in accomplishing the study;
To evaluate the impact of cooperative housing and assess its significance to the economic growth of the nation.
Make possible suggestion to the policy of the housing cooperative societies.
To highlight the importance and the role cooperate housing has brought to the people and to the economy.
1.4 Research Questions
The following research questions shall guide the study;
What is the cost of accumulating a residential building here in this estate in Lagos?
Comparing this residential structure and the cost with other one non-cooperative, which is preferable in cost and avoidable?
What are the privileges given to you as a member and owner of a residents within the cooperative housing?
What is your view to the program and the policy of the housing cooperative society of Ajeromi Ifelodun Local Government Lagos?
1.5 Research hypotheses
The following hypotheses will be tested in the study;
Ho: There is no relationship between housing cooperative societies to the economic growth off the nation.
Hi: There is a relationship between housing cooperative societies to the economic growth off the nation
Ho: Housing cooperative societies has made the standard of living high for the poor masse in Lagos
Hi; Housing cooperative societies have reduce the standard of living high for the poor masse in Lagos
1.6 Significance of the Study
economic growth cannot be achieved without putting in place well
focused programmes to reduce poverty through empowering the people by
increasing their access to factors such as housing. The latent capacity
of the poor entrepreneurs would be significantly enhanced through the
provision of housing cooperative societies to enable them own a place of
However, the lack of required benefits from the housing
cooperative societies in Lagos state has become a major concern in
Nigeria. Hence, this study shall be relevant to policy makers in the
areas of housing cooperative societies in Lagos. Also, this study shall
enhance further research in the subject area.
1.7 Scope and Limitations of the Study
scope of the study shall cover Lagos state housing cooperative
societies using Ajeromi Ifelodun Local Government Lagos. However, this
research will be carried out using five cooperative housing in Ajeromi
Ifelodun Local Government Lagos which had a total number of 234
1.8 Research Methodology
The study relied on
secondary data relating to the concept and implementation of Cooperative
Housing in Ajeromi Ifelodun Local Government Lagos. Data was from both
published and unpublished sources. Considerable materials were gotten
from Internet sources. Non-statistical methods were employed in
analyzing the systems. A comparative analysis was done based on some
parameters including modalities for funding, peculiarities of
Implementation, planning Imperatives and levels of success
Population of Study
population of study shall comprise all the house owners in the five
selected estate in Ajeromi Ifelodun Local Government Lagos. The
population size is at about 234 owners.
A sample size of 200 respondents was drawn from the study population. The constitution of the sample was as follows;
study shall adopt the stratified random sampling technique. The method
entails grouping respondents into strata on the bases of common
characteristics which in this case is the house owners. After the
grouping, the simple random sampling technique is then applied to select
the required sample size of 40 from each estate.
Data Collection Instrument
collection will be done through the questionnaire method. The
questionnaire was structured into section A and B with close ended
questions. Section A shall generate information on respondents’ bio-data
while, section B, will elicits information on respondents perception of
the Ajeromi Ifelodun Local Government Lagos.
is in a close ended format which allowed the respondents to offer their
views according to the Lickert scale of responses as follows;
SA – Strongly Agreed
A - Agreed
U - Undecided
SD – Strongly Disagreed
Administration of the Instrument
foster quick response to the questionnaire, the researcher will
personally administered the questionnaires to the respondents. The
effort enable the researcher to clear some of the items contain in the
instrument with the respondents while, at the same time, respondent
attention were drawn to some items yet to be filled.
Method of Data Analysis
data collected shall be analysed using statistical tools such as
frequency distribution table, percentages, and chi-square analysis for
testing the formulated hypotheses.
X2 = ∑(O-E)2
E df (degree of freedom)= N-1 Where;
X2 = Chi-square calculated value.
O = Observed frequency
E = Expected frequency which is derived by
df = Degree of freedom
N = Number of Observation
∞ = level of significant (5%)
1.9 Definition of Key Terms
growth: this is an increase in the welfare of the citizens and a
general growth to the development and ownership of house among the
Cooperative housing: is a legal entity, like a
corporation, which owns real estate, consisting of one or more
residential buildings; it is one type of housing tenure..
As association of persons usually of limited means who have come
together to achieve a common economic goal through equitable