FG Launches Major Cooperative Sector Reform, Moves to Digitise Operations and Establish Cooperative Bank
The Federal Government has launched a nationwide reform programme aimed at repositioning Nigeria’s cooperative sector as a key driver of economic growth, financial inclusion, agricultural productivity, and grassroots wealth creation.
The initiative was unveiled on Monday at the LASCOFED Multipurpose Hall in Ikeja, Lagos, marking the start of a nationwide sensitisation and advocacy tour on the Cooperative Bank of Nigeria share capital mobilisation and the digital transformation of cooperatives under the Renewed Hope Cooperative Reform and Revamp Programme (2025–2030).
The programme brought together cooperative leaders, policymakers, investors, development partners, farmers, artisans, women groups, youth organisations and other stakeholders across the Southwest.
At the core of the reform is the full digitalisation of cooperative societies nationwide, alongside plans to establish a Cooperative Bank that will expand access to affordable credit and strengthen cooperative-driven economic activities.
The Minister of State for Agriculture and Food Security and Supervising Minister of Cooperative Affairs, Aliyu Sabi Abdullahi, said the initiative aligns with the government’s Renewed Hope Agenda and is designed to modernise the cooperative ecosystem.
He explained that the reforms will improve transparency, eliminate fraud, strengthen accountability, and enhance the sector’s capacity to create jobs and reduce poverty.
According to him, cooperatives remain one of the most effective tools for mobilising grassroots capital and supporting enterprise growth across communities.
He stressed that digitalisation will form the backbone of the new system, noting that manual processes and weak accountability structures will be phased out.
Under the proposed framework, cooperative members will be assigned a digital identification number linked to the national identity system to improve monitoring, traceability and financial discipline.
The minister also said the system will help reduce loan defaults and prevent individuals with unresolved obligations from moving between cooperative societies without proper records.
He further disclosed that the proposed Cooperative Bank of Nigeria will be fully owned by cooperative societies and designed to provide targeted financial services to members.
Modelled after successful cooperative banking systems globally, the bank is expected to strengthen access to credit and deepen financial stability within the sector.
Government’s role, he noted, will be limited to regulatory facilitation and licensing support.
The reform is anchored on seven key pillars, including governance restructuring, access to finance, capacity building, enterprise development, human capital growth, inclusion of women and youth, and global competitiveness.
He also announced the approval of the Institute of Cooperative Professionals of Nigeria (ICOPRON) as the official body responsible for certification and professional standards in the sector.
In her remarks, the Lagos State Commissioner for Commerce, Cooperatives, Trade and Investment, Folashade Bada Ambrose-Medebem, described the reform as timely and critical to Nigeria’s economic transformation.
She said cooperatives remain central to inclusive growth, food security, financial inclusion and community wealth creation.
She also highlighted Lagos State’s ongoing digital reforms, including electronic registration systems and improved data management to enhance transparency and efficiency.
She added that the state will soon begin disbursement of a N10 billion cooperative-based MSME financing scheme under the LASMECO initiative in partnership with the Bank of Industry.
Beneficiaries are expected to access up to N10 million loans at a nine per cent interest rate, with flexible repayment terms.
Stakeholders at the event described the reform as a significant step toward repositioning cooperatives as credible economic institutions capable of supporting national development.
The advocacy tour will continue across all six geopolitical zones as the Federal Government intensifies engagement on the implementation of the reform agenda and the proposed Cooperative Bank of Nigeria.
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