The Federal Government wants to bring back the old cooperative glory — and it's putting ₦200 billion behind the plan.
On Thursday in Kaduna, the government launched a capital mobilisation drive for a proposed Cooperative Bank of Nigeria. The target: raise ₦200 billion from cooperative societies and investors to get the bank off the ground.
Minister of State for Agriculture and Food Security, Dr. Aliyu Abdullahi, who also supervises cooperative affairs, announced the campaign during the North-West Zonal Engagement of the Ministerial Advocacy Tour at the Umaru Musa Yar'Adua Hall.
The plan is built on a tiered contribution system. According to Abdullahi, 1,000 cooperative societies are expected to chip in between ₦21 million and ₦50 million each. Another 3,000 societies will contribute between ₦16 million and ₦20 million. The remaining 6,000 societies will pay between ₦1 million and ₦15 million.
That's 10,000 societies in total — the ministry's target for the campaign.
The proposed bank won't just sit on the money. Abdullahi said it would support agricultural development, enterprise growth, financial inclusion, housing, transportation, value-chain development, and wealth creation. He called it a “movement-driven reform” — not something the government is forcing on anyone.
Ownership of the bank is structured in three parts. Cooperative societies will own 65 per cent through the Cooperative Trust and Investment Society of Nigeria (CoopTrust). Institutional and private investors will take 30 per cent. Employees get the remaining 5 per cent.
The minister also announced the rollout of the National Cooperative Digital Architecture Platform (NCDAP). This includes a National Cooperative Smart Registry, a Cooperative Verification Number (CVN), a CoopID, and a credit system powered by CreditRegistry. The idea is to drag the cooperative sector into the digital age.
Abdullahi drew inspiration from Nigeria's past. He referenced the groundnut, cotton, cocoa, and palm produce cooperative models that once drove regional economies — back when cooperatives were the backbone of agricultural trade.
He called on cooperative federations, development partners, traditional institutions, and financial bodies to get behind the programme. This is part of a nationwide advocacy tour that has already hit the South-West.
The minister also praised Kaduna State Governor, Senator Uba Sani, for creating an enabling environment for commerce, agriculture, and innovation. He gave a nod to the Federal Cooperative College, Kaduna, for its role in cooperative education.
Governor Uba Sani, represented by Commissioner for Agriculture Murtala Dabo, said cooperatives have historically played a central role in Nigeria's socio-economic development — promoting savings, access to credit, and enterprise growth. He added that with ongoing agricultural initiatives like the Special Agro-Industrial Processing Zones and climate-smart farming programmes, a stronger cooperative system would be critical to improving productivity and competitiveness.
The President of the Cooperative Federation of Nigeria, Hannatu Mershak, welcomed the initiative. She said a digitised cooperative sector would improve record-keeping, expand access to finance, and strengthen trust among stakeholders.
The capital drive follows approval at the 8th Regular Meeting of the National Council on Cooperative Affairs. If successful, the Cooperative Bank of Nigeria could become a major player in financing small-scale farmers, traders, and entrepreneurs who have long struggled to access credit from traditional banks.