The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, Dele Oye, has emphasized the need to strengthen cooperative societies to enhance the capacity of Small and Medium Enterprises across Nigeria.
Speaking at the recently concluded 8th National Cooperative Summit Exhibition and Awards 2024, Oye highlighted the critical role cooperative societies play in unlocking capital for SMEs. He called for supportive policies to bolster these societies, enabling them to provide more affordable and sustainable financing options, according to The Punch.
He pointed out that despite their significant potential, SMEs in Nigeria continue to face major challenges in accessing the capital necessary for growth, ultimately limiting their contribution to the national economy.
Strengthening cooperative societies, he argued, could be a key solution to overcoming these financial barriers.
“Traditional financial institutions often impose prohibitive interest rates and stringent lending criteria, making it difficult for SMEs to secure the necessary funding to scale and thrive,” the NACCIMA president said.
Oye emphasized how cooperative societies had been filling the funding gap for SMEs by citing the Lagos State Cooperative Federation and the Gateway Cooperative Multipurpose Society in Ogun State.
He recommended engaging with policymakers to establish a favourable regulatory environment for cooperatives, including advocating for tax incentives, legal protections, and streamlined registration processes.
Additionally, he advocated for the design of workshops and training sessions for cooperative members that included financial management, business planning, and governance.
He also ran awareness efforts to inform small and medium-sized businesses of the advantages of joining cooperative societies.
“Launch awareness campaigns to educate SMEs about the benefits of joining cooperative societies and how they can access funding through these organisations,” Oye noted.
He called for closer cooperation between states, pointing to the Ogun-Lagos Joint Development Commission as an example of how interstate cooperation may improve the climate for SMEs and cooperatives.
According to the Executive Secretary/CEO of the National Cooperative Financing Agency of Nigeria, Mr. Emmanuel Atama, as of April 2023, the country has more than 30 million members in cooperative societies across its 36 states and the FCT.
