The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Dele Oye, has called for the enhancement of cooperative societies to boost the capabilities of Small and Medium Enterprises (SMEs) in Nigeria.
During the 8th National Cooperative Summit, Exhibition, and Awards 2024, Oye emphasized the importance of policies that empower cooperative societies to provide capital for SMEs. He pointed out that SMEs continue to struggle with accessing affordable and sustainable funding, which has limited their growth and economic impact.
“Traditional financial institutions often impose high interest rates and strict lending requirements, making it challenging for SMEs to secure the funding they need to grow and succeed,” Oye stated.
He highlighted examples such as the Gateway Cooperative Multipurpose Society in Ogun State and the Lagos State Cooperative Federation, noting how these organizations have been instrumental in bridging the financing gap for SMEs.
Oye urged policymakers to create a supportive regulatory environment for cooperatives by offering tax incentives, legal protections, and simplifying registration processes. He also recommended organizing training programs and workshops on financial management, business planning, and governance for cooperative members. Additionally, he stressed the need for awareness campaigns to educate SMEs on the benefits of joining cooperatives and accessing funding through these groups.
“Launch awareness campaigns to inform SMEs about the advantages of joining cooperative societies and the funding opportunities available through these organizations,” Oye remarked.
He also called for stronger partnerships between states, citing the Ogun-Lagos Joint Development Commission as an example of how inter-state collaboration can foster a more supportive environment for cooperatives and SMEs.
Oye further suggested that the Federal and State Governments invest in research to identify innovative cooperative models that are tailored to the Nigerian context, ensuring they meet the specific needs of local SMEs.
According to the Executive Secretary/CEO of the National Cooperative Financing Agency of Nigeria, Mr. Emmanuel Atama, as of April 2023, there are over 30 million members in cooperative societies across Nigeria’s 36 states and the Federal Capital Territory.
