FG begins share capital mobilization for Cooperative Bank
The Federal Government has officially launched the South-West zonal engagement of the Ministerial Advocacy Tour to mobilize share capital for the establishment of the Cooperative Bank of Nigeria.
During the event held at the LASCOFED Multipurpose Hall in Ikeja on Monday, the Minister of State for Agriculture and Food Security, Senator Dr. Aliyu Sabi Abdullahi unveiled a new digital identification system designed to sanitize and modernize the cooperative sector.
This initiative marks the formal commencement of the Renewed Hope Cooperative Reform and Revamp Programme (RH-CRRP) 2025–2030.
According to the Minister, starting the tour in the South-West is a symbolic return to the roots of the Nigerian cooperative movement, which began in the region in 1937.
The reform agenda aims to reposition cooperatives as primary drivers of financial inclusion, food security, and job creation, supporting the national goal of achieving a one-trillion-dollar economy.
A central pillar of this reform is the establishment of the Cooperative Bank of Nigeria, which is designed to provide affordable financial services to farmers, artisans, and small business owners.
The bank features a deliberate ownership structure where 65% of controlling equity is reserved for cooperative societies and individual cooperators. Private institutional investors and development finance institutions may hold 30% of non-controlling equity, while the remaining 5% is allocated to employees of the bank and affiliated enterprises.
The Minister emphasized that while the government is facilitating the policy and regulatory framework, the bank is not government-funded and will not utilize Treasury Single Account (TSA) funds.
To address the longstanding issue of unreliable data, the Ministry has introduced two foundational digital systems: the Cooperative Verification Number (CVN) for registered societies and the Cooperative Members Identification Number (CoopID) for individual members. These systems will be integrated with the National Identity Number (NIN) architecture to eliminate ghost societies and provide a credible data backbone for the new bank.
Senator Abdullahi further noted that these digital tools are essential for boosting investor confidence and ensuring that financial assistance reaches genuine beneficiaries.
In her remarks, the Lagos State Commissioner for Commerce, Cooperatives, Trade, and Investment, Mrs. Folashade Ambrose-Medebem, described cooperatives as strategic institutions for the future rather than relics of the past.
She highlighted the need for a nationally coordinated data architecture to track the sector’s contribution to GDP and agricultural productivity.
The Commissioner further stressed that access to finance must be accompanied by strong governance and intensified capacity-building for cooperative leaders to ensure long-term sustainability and transparency.