Nigeria plans cooperative bank, digital push to boost agriculture

Nigeria has launched a nationwide sensitisation programme to establish a dedicated Cooperative Bank and digitise the cooperative sector, beginning with a South-West zonal engagement in Lagos on Monday.

Aliyu Abdullahi, minister of state for Agriculture and Food Security, made this known at the kick-off of the southwest zone Ministerial Advocacy Tour on Cooperative Bank of Nigeria: Share Capital Mobilization and Cooperative Sector Digitalisation Drive.

Abdullahi said the initiative aims to reposition cooperatives as a driver of inclusive growth, financial inclusion, and food security under President Bola Tinubu’s Renewed Hope agenda.

He stressed that these initiatives are crucial for creating a “modern, structured, transparent, and globally competitive cooperative ecosystem” in Nigeria.

According to him, cooperatives globally have proven effective in mobilising grassroots capital, stimulating local production, and reducing poverty.

Abdullahi noted, “If Nigeria must feed itself, empower its citizens, reduce poverty, and expand prosperity, then revamping and modernising the cooperative sector is not optional, it is urgent and non-negotiable.”

He explained that the proposed Cooperative Bank of Nigeria will be 65 percent owned by cooperative societies and individual cooperators, with 30 percent held by private and institutional investors and 5 percent by employees.

Abdullahi stressed the project is “government-enabled but not government-funded” and designed to preserve cooperative control while meeting modern financial standards.

According to him, the bank is part of the broader Renewed Hope Cooperative Reform and Revamp Programme approved in March.

Alongside the bank, the ministry is rolling out a digitalisation framework featuring a Cooperative Verification Number for societies and a CoopID for members, both linked to the National Identity Number system.

The data push seeks to eliminate ghost cooperatives, boost investor confidence, and give the sector the credibility needed to attract financing and scale.

Abdullahi called the Lagos event a “symbolic return to the roots” of Nigeria’s cooperative movement, which began in the South-West in the 1930s.

Speaking also, Folashade Ambrose-Medebem, commissioner, Ministry of Commerce, Cooperatives, Trade and Investment, Lagos State, said Lagos is repositioning its cooperative ecosystem to support industrialisation, food systems, job creation, and inclusive prosperity.

“The cooperative sector must evolve beyond traditional thrift and credit administration into a digitally enabled, professionally managed, and investment-ready ecosystem,” she said.

According to her, the state government has intensified the deployment of digital registration processes, electronic documentation systems, member data management platforms, and technology-driven monitoring frameworks.

Ambrose-Medebem stated, “This transition is gradually eliminating manual bottlenecks, improving record accuracy, enhancing compliance, and enabling real-time access to cooperative information for planning and policy formulation.”

Lagos State has launched the Lagos State-Bank of Industry Access to Finance for SMEs Through Cooperatives (LASMECO) programme, providing up to 10 million naira at a single-digit interest rate of 9 percent.

She noted, “This financing model leverages the inherent strengths of cooperatives, namely peer accountability, social trust, collective responsibility, and repayment discipline.

“The administration of Governor Babajide Sanwo-Olu has prioritised the promotion of sound management practices, corporate governance, and institutional accountability within the cooperative sector.”

“We have intensified capacity-building programmes for cooperative leaders, management committees, and supervisory bodies in areas such as financial management, internal controls, conflict resolution, cooperative law, digital bookkeeping, audit compliance, and strategic planning.”

In his vote of thanks, Mohammed Abdulkadir, director of Cooperatives Federal Ministry of Agriculture &Food Security, said the discussions at the event reaffirmed that the future of the cooperative movement in Nigeria is bright.

He added that through collective commitment, strategic partnerships, strong governance and digital transformation, the cooperative sector can become a major force for inclusive economic growth and national development.

“As we commence this nationwide advocacy and mobilization tour from the South-West Zone, we look forward to greater collaboration, increased stakeholder participation and stronger support towards the successful realization of the Cooperative Bank of Nigeria and the Cooperative Sector Digitalization Drive.”