FG launches ₦200bn capitalization drive for Cooperative Bank establishment

The Federal Government has launched a ₦200 billion capitalization drive to facilitate the establishment of the proposed National Cooperative Bank of Nigeria.

The initiative, aimed at addressing the acute financing bottleneck crippling micro, small, and medium-scale enterprises (MSMEs), seeks to pool equity contributions from cooperative societies, development partners, and private institutional investors nationwide.

Under the rollout framework, the apex cooperative financial institution will function as a specialized lender, providing structured, single-digit interest credit lines to registered farmers, artisans, and small-scale manufacturers who traditionally struggle to meet the stringent collateral requirements of conventional commercial banks.

Speaking on the strategic national asset, government representatives noted that the capitalization drive aligns with broader economic sustainability plans to deepen financial inclusion at the grassroots, stimulate local manufacturing capacity, and create sustainable employment opportunities.