Investigation into the Management of Cooperative Funds in Housing Cooperatives in Lagos State

Housing cooperatives represent a promising model for addressing the chronic housing deficit in Nigerian urban areas, but effective fund management is essential for their viability and member trust. This study investigated fund management practices in housing cooperative societies in Lagos State, South West Nigeria. A survey was conducted among 140 members and financial managers from eight registered housing cooperatives in Alimosho, Ikorodu, and Lekki Area Councils. Data collection tools included structured questionnaires and documentary analysis of financial records where accessible. Fund management dimensions assessed covered capital mobilisation, savings rates, fund investment decisions, and housing delivery timelines. Results showed that housing cooperatives in Lagos mobilised significant capital, with mean annual savings per member of 215,000 naira. However, only 37.5 percent of cooperatives had allocated funds to completed housing units within ten years of formation, pointing to severe fund deployment inefficiencies. Investment of cooperative funds in non-housing instruments such as commercial lending was practised in 62.5 percent of cooperatives without adequate member authorisation. Mismanagement allegations had arisen in 50 percent of surveyed cooperatives within the past five years. The study concludes that fund management weaknesses in Lagos housing cooperatives are eroding member confidence and delaying housing delivery. Recommendations include independent fund trustees, housing delivery timelines enshrined in cooperative byelaws, and regular member-facing financial disclosure meetings.

Keywords: housing cooperatives, fund management, Lagos State, urban housing, cooperative governance