The Ekiti State Government has moved closer to the disbursement of its N1 billion cooperative loan scheme, announcing that participating cooperative societies will begin accessing the facility after completing documentation requirements and signing a Memorandum of Understanding (MoU) with the state government.
Follow us on Google News
The Commissioner for Trade, Industry, Investment and Cooperatives, Mrs Omotayo Adeola, disclosed this during a stakeholders’ meeting with cooperative leaders and representatives in Ado-Ekiti.
According to Adeola, the loan initiative approved by Governor Biodun Oyebanji in July 2025 was created to strengthen cooperative societies across the state and improve the economic conditions of members through structured financial support.
She explained that the delay in disbursing the facility was linked to disagreements among cooperative groups over some conditions attached to the scheme, alongside misinformation surrounding the implementation process.
Adeola said the programme also passed through several government procedures before approval could be finalised.
“The process involved official deliberations, approvals, budgeting and financial authorisation before the release of funds. These are necessary government procedures that must be completed properly,” she said.
She stressed that the signing of the MoU remains compulsory for all cooperative societies that intend to benefit from the intervention, urging stakeholders to comply fully with the approved guidelines.
The commissioner disclosed that cooperative societies participating in the programme have been divided into three categories to ensure smooth implementation and proper coordination.
She explained that the first category consists of FESCOOP, Triple C and the Coalition, while the second category includes ASSUS, Departmental Unions, NULGE and LGEA/Teachers’ Cooperatives.
According to her, the third category covers independent cooperative societies operating within different communities across the state.
Adeola maintained that the initiative should not be mistaken for a grant programme, insisting that beneficiaries would be expected to repay the loans after the agreed moratorium period.
“This intervention is a loan and not a grant. Beneficiaries are expected to use the funds for productive activities that will strengthen their cooperative societies and improve members’ economic capacity,” she said.
She further stated that proper documentation would play a major role in accessing the facility, adding that beneficiaries would be required to provide collateral where necessary.
The commissioner noted that Certificates of Occupancy and other supporting documents would be compulsory in applicable cases.
She also explained that independent cooperative societies would access the facility through Omiye Microfinance Bank because many of them are not connected to government payroll structures or registered labour unions.
On repayment arrangements, Adeola disclosed that beneficiaries would enjoy a three-month moratorium on principal repayment after disbursement before repayment officially begins.
She said the MoU structure would involve the state government, Omiye Microfinance Bank and participating cooperative organisations.
According to her, the microfinance bank will oversee repayment monitoring and provide periodic reports on the performance of the scheme.
Adeola urged stakeholders to submit feedback on already distributed templates to speed up the disbursement process.
She added that the government would soon release a harmonisation schedule to coordinate the remaining stages of implementation.
The commissioner directed all participating groups to conclude the signing of the MoU on or before June 20, 2026, at the Governor’s Office.
Earlier at the meeting, the Permanent Secretary in the ministry, Pharm. Bunmi Ejimokun, advised cooperative leaders to forward the names of qualified members interested in accessing the loan facility.
Ejimokun said only eligible and prepared members should be recommended in order to ensure smooth implementation and repayment compliance.
Speaking on behalf of cooperative stakeholders, Chairman of the Cooperative Stakeholders, Chief John Enaebe, commended the Ekiti State Government for introducing the initiative.
He pledged the support of cooperative societies towards ensuring the successful implementation of the programme.
Also speaking, Mr Ojo Ezekiel of Ifesowapo CMU, Ikere-Ekiti, assured the government that coalition members were ready to provide the required collateral to access the facility.
A representative of the Departmental Unions, Mr C. Akinwumi, appealed to the state government to revive the annual Cooperative Day celebration in the state.
Responding to the request, Adeola said the ministry would consider the proposal in its 2027 budget plans.
In his remarks, the Director of Cooperative Services, Mr Olufemi Obisesan, described the N1 billion intervention as unprecedented in the history of cooperative movements in Ekiti State.
According to him, the programme represents one of the largest direct financial support initiatives targeted at cooperative societies in the state.
Stakeholders at the meeting assured the government of their readiness to comply with all conditions attached to the scheme in order to ensure prompt disbursement and successful implementation of the cooperative loan programme.
