The Federal Government has flagged off the nationwide share capital mobilization drive for the proposed Cooperative Bank of Nigeria, marking the beginning of a major reform programme aimed at repositioning the country’s cooperative sector for economic growth, financial inclusion and enterprise development.
The flag-off took place during the South-West Zonal Engagement of the Ministerial Advocacy Tour on the Cooperative Bank of Nigeria Share Capital Mobilization and the Cooperative Sector Digitalization Drive held at the LASCOFED Multipurpose Hall in Ikeja, Lagos.
The initiative is being driven under the Renewed Hope Cooperative Reform and Revamp Programme (RH-CRRP) 2025–2030 approved at the 8th Regular Meeting of the National Council on Cooperative Affairs (NCCA) in March 2026.
Speaking at the event, the Minister of State for Agriculture and Food Security and Supervising Minister of Cooperative Affairs, Sen. Dr. Aliyu Sabi Abdullahi, said the programme is designed to transform cooperatives into stronger economic institutions capable of supporting national development priorities under President Bola Ahmed Tinubu’s Renewed Hope Agenda.
According to him, the engagement marks the formal commencement of two major reforms — the establishment of the Cooperative Bank of Nigeria and the digital transformation of the cooperative sector across the country.
He said the decision to begin the advocacy tour in the South-West was deliberate because of the region’s historical role in the development of cooperative movements in Nigeria.
“Commencing this tour in the South-West is a symbolic return to the roots of the cooperative movement in Nigeria. This is where it all began in 1937 with Gbedun Cooperative, and it is fitting that we relaunch our reform agenda here,” Abdullahi said.
The Minister explained that the proposed Cooperative Bank of Nigeria is expected to provide affordable and accessible financial services to cooperators, farmers, artisans, traders, Small and Medium Enterprises (SMEs), women, youths and Persons with Special Needs.
He stressed that the model being introduced is different from previous cooperative banking structures that eventually lost their cooperative identity over time.
To prevent a repeat of that experience, Abdullahi said the ownership structure of the proposed bank has already been clearly defined.
Under the arrangement, 65 per cent controlling equity will be reserved strictly for cooperative societies, unions, federations and individual cooperators to maintain cooperative ownership and control.
Another 30 per cent non-controlling equity will be opened to institutional investors, development finance institutions, impact investors and qualified private individuals, while five per cent equity participation will be reserved for employees of the bank and affiliated cooperative enterprises.
The Minister emphasized that the Federal Government would not fund the bank directly.
“This initiative is government-enabled, not government-funded. No Treasury Single Account funds are involved,” he said.
According to him, the role of the Federal Ministry of Agriculture and Food Security will be limited to policy support, stakeholder coordination and regulatory facilitation.
Beyond the banking initiative, Abdullahi announced plans for a comprehensive digital transformation of the cooperative ecosystem through the introduction of new national identity systems for cooperatives and their members.
He revealed that the Ministry would introduce the Cooperative Verification Number (CVN) for all registered cooperative societies across Nigeria.
The CVN, he explained, is expected to eliminate ghost cooperatives, strengthen regulation, improve transparency and increase investor confidence within the sector.
In addition, every cooperator in Nigeria will also receive a Cooperative Members Identification Number known as CoopID.
According to the Minister, the CoopID system is expected to improve financial inclusion, traceability and access to financing opportunities for cooperative members nationwide.
He disclosed that both digital systems would be integrated into the National Identity Number (NIN) architecture to ensure alignment with existing national data systems and provide a reliable data backbone for the proposed Cooperative Bank of Nigeria.
Abdullahi said the broader RH-CRRP 2025–2030 reform programme is built around seven strategic pillars aimed at modernising the cooperative ecosystem.
The pillars include cooperative governance and institutional reforms, cooperative financing and establishment of the Cooperative Bank of Nigeria, digitalization and data management systems, capacity building and cooperative education, value chain development and market access, inclusion of youths, women and persons with special needs, as well as strategic partnerships and global competitiveness.
He noted that the proposed bank would also serve as a gateway into a larger cooperative investment ecosystem through the planned Cooperative Trust and Investment Society of Nigeria known as CoopTrust.
“The Cooperative Bank will serve as the entry point into a broader ecosystem through the proposed Cooperative Trust & Investment Society of Nigeria, CoopTrust. This extends investments into housing, transport, retail, agro-processing and digital platforms for our cooperatives,” he said.
The Minister said the reform programme is designed to revive dormant cooperative structures and position the sector as a key contributor to job creation and economic empowerment.
“Under RH-CRRP 2025–2030, we are ending the era of dormant cooperatives. We are building a movement that creates wealth, jobs and dignity for millions of Nigerians,” he added.
He called on cooperative leaders across the country to mobilise members for the digitalization process while urging development partners and investors to see the initiative as a long-term national economic transformation platform.
In her remarks, Lagos State Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs Folashade Ambrose-Medebem, described cooperatives as strategic institutions capable of driving future economic growth.
She noted that cooperative institutions globally account for more than one billion members, while the top 300 cooperatives generate over two trillion dollars annually across sectors including agriculture, retail, housing finance and community banking.
According to her, Nigeria must reposition its cooperative system as an important component of national economic transformation.
Ambrose-Medebem stressed the importance of developing a coordinated national cooperative data architecture capable of generating reliable statistics for GDP growth, employment and agricultural productivity.
She also highlighted the need for stronger digital interoperability between cooperative registries, financial institutions and regulators to improve transparency, reduce fraud risks and strengthen investor confidence.
The Commissioner warned that access to finance without proper governance structures could undermine sustainability within the sector.
She therefore called for intensified capacity building for cooperative leaders in areas such as financial management, internal controls, audit compliance, digital bookkeeping, strategic planning and cooperative law.
Delivering the vote of thanks, the Federal Director of Cooperatives Department, Dr. Mohammed Bashir Abdulkadir, said the discussions at the event demonstrated the growing potential of the cooperative sector to drive inclusive economic growth in Nigeria.
He commended Sen. Abdullahi for championing reforms aimed at repositioning cooperatives under the RH-CRRP framework and also appreciated the Lagos State Government and stakeholders for supporting the successful flag-off of the South-West ministerial advocacy tour.
