The Cooperative Federation of Nigeria (CFN) has reaffirmed its commitment to supporting the Federal Government in repositioning the cooperative sector for global competitiveness, describing cooperatives as powerful instruments for grassroots mobilisation, poverty reduction, and economic empowerment. CFN President Mrs Hannatu Mershak made the pledge at the 8th Regular Meeting of the National Council of Cooperative Affairs (NCCA) in Abuja, convened by the Federal Department of Cooperatives under the Federal Ministry of Agriculture and Food Security. The meeting, themed “Revitalising Nigeria’s Cooperative Sector: A Catalyst for Inclusive Growth and Sustainable National Development under the Renewed Hope Agenda,” brought together stakeholders to assess progress and chart a path forward.
Mershak noted that the federation was encouraged by the Federal Government’s renewed commitment to repositioning the sector as a key driver of the national economy, an alignment that she said strongly supports the aspirations of the Renewed Hope Agenda. The agenda prioritises inclusivity, food security, job creation, and sustainable development, objectives that cooperative societies are well-positioned to advance. Across Nigeria’s rural and underserved communities, cooperatives function as essential economic lifelines, providing access to finance, enhancing agricultural productivity, creating employment opportunities, and strengthening community resilience. For smallholder farmers, artisans, and traders who lack individual access to formal credit, cooperative structures enable collective investment, risk-sharing, and economies of scale that would otherwise be unattainable.
From an economic development perspective, the cooperative sector represents a significant but often underutilised asset. Cooperatives aggregate the resources and efforts of millions of Nigerians across agriculture, trade, transportation, housing, and savings. When functioning effectively, they reduce transaction costs for members, provide platforms for skills transfer, and create distribution channels for government programmes aimed at poverty reduction and rural development. The sector’s potential to contribute to GDP, employment, and financial inclusion is substantial, yet has historically been constrained by governance weaknesses, limited access to affordable finance, and inadequate regulatory frameworks.
Mershak highlighted key challenges facing the sector, including governance issues that have led to mismanagement and loss of member funds in some cooperatives, limited access to affordable finance that constrains growth, inadequate digital integration that leaves operations reliant on manual processes, weak regulatory frameworks that fail to provide adequate oversight, and low awareness among potential members about the benefits of cooperative membership. Addressing these challenges, she emphasised, requires bold reforms, innovative approaches, and sustained collaboration among stakeholders including government, private sector actors, and development partners.
The meeting provided an opportunity to review existing policies and frameworks, strengthen institutional capacity and leadership, and promote transparency, accountability, and good governance in the sector. Mershak noted that leveraging technology for improved efficiency and expansion would be essential, as digital platforms can streamline record-keeping, facilitate mobile savings, and expand the reach of cooperative services to members in remote areas. The integration of cooperatives into broader digital financial inclusion initiatives could significantly enhance their ability to serve as conduits for social protection payments, agricultural input distribution, and microcredit disbursement.
The government’s renewed focus on cooperatives comes at a time when economic inclusion has become a policy priority. With unemployment remaining elevated and access to credit constrained for informal sector operators, cooperative structures offer a pathway to organising economic activity that combines the flexibility of informal arrangements with the scale and credibility of formal institutions. The sector’s ability to mobilise local savings, channel them into productive investments, and provide a social safety net for members makes it a valuable complement to formal financial institutions.
