The Federal Government is actively mobilising N200 billion in share capital from cooperative societies nationwide to fund the take-off of the proposed Cooperative Bank of Nigeria. This initiative is a key part of the government's strategy to enhance access to credit and financial services for millions of cooperative members across the country.
Minister of State for Agriculture and Food Security, Sen. Aliyu Abdullahi, announced this during a zonal engagement in Kaduna. The capital mobilisation is coupled with a nationwide digitalisation programme aimed at boosting governance, transparency, and accountability within the cooperative sector.
Abdullahi unveiled the National Cooperative Digital Architecture Platform (NCDAP). This platform will establish a unified database for registered cooperative societies and their members, introducing unique identification systems for both organisations and individuals. The NCDAP will issue Cooperative Verification Numbers (CVNs) to societies to strengthen regulation, eliminate ghost cooperatives, and improve access to financial support.
Individual cooperative members will receive a Cooperative Member Identification Number (CoopID) to enhance identity management, accountability, and access to financing. The digital platform will be integrated with national identity systems and supported by a cooperative credit reporting framework to foster trust and mitigate lending risks.
The digitalisation programme is expected to significantly improve governance standards and the credibility of cooperative institutions, laying a robust foundation for the Cooperative Bank of Nigeria. Stakeholders, including Kaduna State Governor Uba Sani's representative, Commissioner for Agriculture Murtala Dabo, expressed support, highlighting how technology-driven cooperatives can boost agricultural productivity and financial inclusion.
Mrs. Hannatu Mershak, President of the Cooperative Federation of Nigeria, and Dr. Mohammed Awwal, Provost of the Federal Cooperative College, Kaduna, also affirmed their commitment to supporting the reforms through training and capacity building.
This engagement is part of a broader advocacy campaign launched in May. Lessons from previous cooperative banking models have informed the proposed ownership structure for the new bank. Cooperative societies, unions, federations, and individual cooperators will hold 65% of the bank's equity, ensuring cooperative control. Private institutional investors, development finance institutions, and qualified individuals will hold 30%, with the remaining 5% allocated to employees.
The initiative aligns with the Federal Government's objective to improve access to affordable financing for agriculture and rural enterprises. This follows recent government interventions, including a N250 billion facility for the Bank of Agriculture (BOA) and a $1 billion intervention fund for the BOA in partnership with the African Export-Import Bank (Afreximbank).
