IMPACT OF HOUSING COOPERATIVE SOCIETY ON HOUSING DELIVERY IN NIGERIA

IMPACT OF HOUSING COOPERATIVE SOCIETY ON HOUSING DELIVERY IN NIGERIA

(A CASE STUDY OF KEFFI, NASARAWA STATE)

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF THE STUDY

Housing is essential for human existence and its procurement requires huge capital, its provision is based on the availability of finance. Housing goes beyond the mere assemblage of bricks and mortar. It encompasses the totality of the environment and infrastructure which provides human comfort, enhance people’s health and productivity as well as enable them to sustain their psycho-social or psycho-pathological balance (Ayeniyo 2011). The housing delivery system in Nigeria is a combination of interrelated processed. As such, housing problems are multifarious and requires multidimensional solutions. Nigerians diverse housing problems revolve around over-crowding and slum housing (Danmola 2007).

However, for many Nigerians, the desirability of owning or living in decent homes is as strong as the reality of its elusiveness. Inability to afford this prime asset is largely a root cause of the deficient housing situation in Nigeria. Government overtime has intervened in the housing sector by increasing housing stock through the construction of housing estates and through its mortgage institutions, facilitated the disbursement of housing loans. It is now a well-recognised fact that Governments in most, if not all developing countries of the world and Nigeria in particular have not been, nor will they likely be able to adequately provide direct housing to all that are in need of shelter. Whereas decent housing has been universally accepted as one of the basic needs of individuals, the family and the environment (Adeboyejo, 2005). It should be noted that, housing is a reflection of the cultural, social, aesthetic and economic values of a society as it is the best physical and historical evidence of civilisation in a country.

One of the solutions being explored by the low and middle income groups is the co-operative housing, through the Co-operative Societies. Co-operative housing according to Co-operative Housing Federation (CHF)-International (2004) is an alternative housing approach that combines the system of co-operative practices and methods with the principles and processes of housing development to provide housing for members. It is a medium supported by government at all levels and commended by the United Nations. In a report by the UN-Habitat (2002), the United Nations’ Secretary-General summarized the significance of the Co-operative sector to the economy generally as follows: “Co-operative Societies support social cohesion and stability and give life to the concepts of corporate responsibility and citizenship. They provide essential services, ranging from housing to health care that strengthen community development”. Ironically, the idea of housing delivery through co-operative societies is not new (Wahab, 1998), what is new however, is that the model has been repackaged and re-invigorated in recent times in many countries by incorporating various methods and techniques to improve access to housing and thus serve the common interest of realising different objectives of the low and middle income groups; who may not necessarily belong to the same community, ethnic group, religion or linguistic background. This vehicle of housing delivery according to Danmole (2004), Daramola (2006) and Gezzard (2007) has been applied in different countries such as Italy, United Kingdom, Zambia, Sweden, Philippines, Denmark, Norway, Canada and South Africa with significant success.

The activities of co-operative societies towards economic and financial empowerment of members have been a subject of investigation by scholars. In the area of housing delivery however, studies on co-operative societies’ intervention in housing provision have been grossly limited especially in Nigeria while statements about their success have either been journalistic, superfluous and empirically unsubstantiated. For instance, Diacon (1994), Daramola (2006), Gbadeyan (2011) and Adedeji and Olotuah (2012) among others averred that the involvement of co-operative societies in housing provision has been successful. Gbadeyan (2011) explained that Co-operative Societies have been playing significant role in the delivery and provision of housing services in urban centres in Nigeria. On the other hand, Ndubueze (2009) expressed contrary opinion and stated that Co-operative Societies are yet to make any significant impact on the Nigeria housing sector development. Neither of these contradicting opinion provided empirical evidences to buttress their claims and it becomes important to undertake decisive investigation to determine the success of the option among the users. Thus this research seek to examine the impact of housing cooperative society on housing delivery in Nigeria.

1.2       STATEMENT OF THE PROBLEM

The housing problem in Nigeria is more pronounced in the urban areas, which have been growing in the member of housing units available for occupation. Low and middle-income earners constituting over 95% of urban work force which were the most affected. With the high rate of urbanisation which is largely as a result of the rural-urban migration into the cities, it is assumed that the higher the population and rate of urbanisation in a city, the higher the level of housing needs of its inhabitants. There is no doubt that housing shortage and its associated problems are due to the influx of people into the cities. Several attempts have been made by government and private organization to enhance the delivery of housing unit in Nigerian urban centers but the result is far below the desired outcome. Other ways to be explored toward solving this menace of housing shortage is the housing cooperative society. The role of housing co-operatives is highly significant in housing delivery which established ways of using the co-operative societies to increase the number of residential houses for low and middle income dwellers. This study seeks to explore the potential of cooperative housing as a model that will help to address the housing challenges in Nigeria.

1.3       AIM AND OBJECTIVES OF THE STUDY

The aim of this project is to examine the impact of housing cooperative society on housing delivery in Nigeria with the case study of Keffi, Nasarawa State.

The specific objectives of the study are as follows:

1. To identify the socio-economic characteristics of the housing cooperative society  in the study area;
2. To assess the uses of funds of co-operative societies;
3. To determine to what extent housing co-operative society have benefited members in financing their housing development
4. To examine the impact of housing cooperative society on housing delivery
5. To identify the  problems militating against the effectiveness of co-operative societies;

1.4       RESEARCH QUESTIONS

1. What are the socio-economic characteristics of the housing cooperative society  in the study area?
2. How is fund of  housing cooperative society used?
3. To what extent does housing co-operative society benefited members in financing their housing development?
4. What are the impact of housing cooperative society on housing delivery?
5. What are the problems militating against the effectiveness of co-operative societies?

1.5       SIGNIFICANCE OF THE STUDY

It is becoming very apparent that people still find it difficult or almost impossible to raise capital for respective housing development. This analysis would have at the end made a critical analysis of the various methods of raising capital for housing development with particular reference to housing co-operative society with the main intention of highlighting the prospect and trends of housing co-operative societies in Nigeria as it affect capital formation for housing delivery. It is hoped that the result or findings from this study will contribute to knowledge in the area of capital formation for housing development as well as a contribution to policy framework with respect to housing cooperative society in Nigeria.

1.6       SCOPE AND LIMITATION OF THE STUDY

The scope of this study of this study is limited to the impact of housing cooperative society on housing delivery in Nigeria. The study will be limited to Keffi, Nasarawa state, therefore data will be gathered from respondents who reside in Keffi town.  

Limitation

Its major limitation was the problem of getting information from the institution under study. There is always the fear of giving out information to the public as such, vital information needed was not readily available.

Time equally would not be left out; getting permission to leave school and the issue of finance cannot be ignored as much was spent in procuring materials. However, with fact and judicial use of the limited resources, reasonable analyses have been carried out in this research work.      

1.7       OPERATIONAL DEFINITION OF TERMS

Housing: Housing refers to houses or buildings collectively; accommodation of people; planning or provision of accommodation by an authority; and related meanings. The social issue is of ensuring that members of society have a home in which to live, whether this is a house, or some other kind of dwelling, lodging, or shelter.

Finance: Merriam Webster define finance as money or other liquid resources of a government, business, group, or individual.

Cooperatives: Cooperatives are defined as “an autonomous association of persons who unite voluntarily to meet their common economic and social needs and aspiration through a jointly owned and democratically controlled enterprise (IC1A, 1995)

Low Income Group: Low income group is defined as al wage earners and a self employed people whose annual income is five thousand naria (5, 000.00) or below as at 1988 or whose arrival income is 20% or below of the maximum annual income of the highest salary grade level within the civil service structure, which ever is high.

Middle Income Group: Middle-income group is also hereby defined as workers whose annuals income is above 20% and below 50% of the maximum annual income of the highest salary grade level. 

Housing co-operative: The definition of housing co-operative was agreed to be “a formal association of members physical, social and economic living condition, utilizing self – help principles. 

PROPERTY: This is the embodiment of tangible ownership right or bundles of right in real estate. It could also be described as a concept of right which can be held separately (Babatunde, 2003)

RENTAL VALUE: This is the worth or value of property in an open market. It is also the value arising out of the lease or renting out of a property on a periodic basis usually yearly.

RESIDENTIAL PROPERTY: it is a building that is used or suitable for dwelling purpose. They are dwelling house such as bungalows, duplex, detached houses, semi-detached houses, etc. (LBTT 4010)

1.8       AREA OF THE STUDY

Keffi Local Government Area is largely an urban Local Government Area and Keffi town is one of the oldest towns in Nasarawa state that enjoy the eminent position of being a foremost centre of history. Metropolitan Keffi currently has ten political wards namely – Tudun Kofa, Gangaren Tudu, Yara, Goriya, Liman Abaji, Ungwar Rimi, Iya I, Iya II, SabonGari and Jigwada, these serve as spatial reference points for analysis. In the high density areas, there are usually large cluster of old houses with high concentration of households and indecent surroundings. The situation becomes even worse with the ever-increasing migration of low or no income earners from the surrounding rural neighborhoods into the town. This has resulted among other things, in the increase of petty businesses, which competes for accommodation with households in the same buildings and therefore, has aggravated the problems of shorter dwelling units.

Similarly, houses within the high residential areas reflect the images of their inhabitants, particularly in the complete separation of women, and in directing day time activities toward an inner court. The basic emotional needs of utmost to the residents, the need for privacy, and family entertainments. These are emotionally connected, and were taken into consideration to a great extent in terms of the physical layout of the houses. The physical and mental health as well as the social well-being of the inhabitants of low and medium density areas are therefore, by virtue of their relative cleaner, more refined and quieter living environment, generally more conducive to a better quality of life, than those of their fellow citizens residing in the high density areas. Abubakar (2000) observed that many potentially harmful materials such as solvent and pesticide containers, medical waste and asbestos debris, even though prohibited are already present in the collected waste in Keffi. Keffi is located between Latitude 8°50’55” N and 7°52’25” E or 8.84861 and 7.87361 (in decimal degrees).

Transportation network in urban Keffi is fair being limited to vehicles and motor cycles. Roads in Keffi was categorized into the following hierarchy: Arterial and collector roads that pass through the town from Akwanga (with only one lane) to Abuja (with two lanes each) and also foot/cycle paths, they are the intercity roadways linking the city to neighboring states, and they also form the boundaries of the phases of the city. They also receive traffic from local streets and deliver to the access roads which are meant to serve the residential areas; Local streets have single two lane carriageways with foot/cycle paths,; and Access roads with single two lane carriageways and cycle paths. The mass-Transit System for moving large numbers of people into Keffi center and out again is mainly the buss (vehicle) system with the main transportation terminal being motor parks and the Keffi central market, these are the locations where buses (vehicles) originate and terminate.  

The main source of water supply to Keffi is the River Mada Water Works at Gudi. It has a maximum capacity of supplying water to a population equivalent of 350,000 inhabitants which means that it is not enough to meet the ultimate city requirements. The transportation of water to Keffi is by gravity through a series of water tanks around the periphery of the city. This is a unique system because the clear water reservoir of the treatment plant is elevated enough to facilitate the gravitational flow right to the city. However, there are areas in Keffi where the water pressure is too low due to head losses and for those areas booster stations would be necessary. Municipal solid waste in Keffi is composed of paper, plastics, food, yard wastes, glass, metals, and wood among others.

PHYSICAL CHARACTERISTICS

1. Geology and Relief

The landscape of Keffi form part of the low plains of the Benue trough. This plain is believed to be tectonic in origin and is lying in depression. The Maloney Hill in Keffi is of historical significance. Keffi is drained by numerous fast-flowing streams that take their sources from Jama’a catchment in Kaduna State and flow into the River Antau.

Keffi is well-endowed with both renewable and non-renewable natural resources. The major non-renewable resources include the constructional materials such as gravel, sand, clay and earth. Sand is obtained both on land and from river beds. The major renewable natural resources include water resources, a wide variety of economically important timber species, pole-wood, fuel-wood; edible vegetables, fruits, nuts and seeds; medicinal plants, palm wine and other palm products; fibers; and tannin.

2. Climate of the Study Area

a) Pattern of Mean Rainfall in Keffi 

Keffi is characterized by a dry season of seven months or more, usually between October/November and April/May. Data from the National Meteorological Department, Lafia, 2015 suggest that the mean annual rainfall distribution in Keffi ranges from 1000mm to 1200mm. The minimum rainfall received during the dry season ranges from less than 50mm to 100mm.

Similarly, the data further shows that, the mean onset date of rains in the area is currently before 10^th of April (for early onset), the late rains generally come before 20^th April. On the average, rains terminate in October, but sometimes may extend beyond November 15^th. However, the mean cessation dates is generally between 17^th and 27^th October. The mean length of rainy season (LRS) ranges from more than 150 days to less than 180 days.

b) Sunshine

The duration of sunshine per day, combined with solar radiation intensity are two important parameters that determine the drying power of the ambient air. Keffi enjoys high sunshine hours of 8-9 hours per day. Hence daytime lengths are on the average about 8.5 hours for most of the dry season; this may mean increase in evaporation. The high evaporative power of between 16 and 20 millimeter of water in November also suggest a very high drying power. Extreme dryness is usually associated with values higher than 20 ml when relative humidity (RH) is 40% or below. The mean monthly temperature ranges from 25.7⁰ in August to 30.9⁰ in March. 

c) Effective Temperature Factor

The rate of all developmental processes is directly regulated by temperature, being accelerated when temperatures are raised and retarded when they are lowered.

SOCIOECONOMIC CHARACTERISTICS

1. Socio-economic Activities

Human activities in Keffi includes: primary – fishing and farming, quarrying, and river sand mining have become major production activities in Keffi; secondary – manufacturing, and various traditional industrial activities (weaving, carving, dyeing, smiting and so on) found in the informal sector of the economy; and tertiary – commerce, administration, banking and finance, information, transportation and local traditional marketing through the traditional rural periodic markets and the urban markets. There has been a quite modest improvement in the construction of new roads within Keffi by the present administration under Governor Umaru Tanko Almakura. Generally, inadequate transport system has been a major constraint on social and economic development in Keffi.

• Demographic Characteristics

Studies by the Abubakar (2006), observed that population growth in Keffi is influenced by declining mortality and stable high fertility level as well as influx of people because of its proximity to FCT Abuja. This increase had been further influenced by factors such as improved environmental sanitation, raising income level, peace and political order. Similarly, decline in mortality rate, increase in fertility had (still is) consistent in Keffi.

Inter-marriage, early marriage has been important factors in high fertility in the Keffi. Apart from natural population increase, Keffi also experiences a relatively high level of immigration as a result of movement of the seat of Federal Government from Lagos to Abuja. Until recently migration in Keffi followed the common developing country pattern of young people leaving their rural villages to seek work in larger urban centers. Thus Keffi has an average population growth rate of about 3% which is higher than the national average of about 2.5 per cent (NPC, 2015). Keffi is home to Nasarawa State University Keffi, School of Health Technology, and a large number of primary and secondary schools among which is Government College Keffi.