The Role of the Federal University of Technology, Akure Cooperative Multipurpose Society in Housing Finance

Abstract

Housing finance in Nigeria is facing a lot of problems among which are inadequate mortgage finance, inaccessibility to other form of formal loans from other financial institutions due to stringent conditions attached to its access; urbanization brought about by ever increasing human population; and the economic recession being experienced in Nigeria. Housing development financing and shelter provision among the low and medium income groups become more critical because of lack of access to credit; and these groups constitute the vast majority of the urban households in Nigeria. There are no robust and pragmatic housing finance systems on ground. The reality on ground led to evolution of informal housing finance system of which thrift and credit cooperative is one. Against this background the paper examine the role played by the Federal University of Technology, Akure cooperative multi-purpose society in the provision of housing finance to its members, Secondary data were collected for this study through the use of structured questionnaire from 29.5% of its members. Secondary data were equally obtained from archival data of the society and analysed. The study revealed that majority of their members relied on collection of loans from the cooperative society for their housing development finance. The preferences for this form of finance were given as: ease of processing loan application; low interest rate charge on loan; and ease of amortization. The paper posits that government should intervene in housing finance through methods such as site and service scheme, provision of low interest loans with longer moratorium periods, and special political consideration and leverage be given to the housing need of low and medium income earners to ameliorate poverty among this group.