FG Sets N200bn Capital Target for New Cooperative Bank
The Federal Government on Thursday unveiled plans to raise N200bn in share capital for a proposed Cooperative Bank of Nigeria as part of efforts to strengthen financial inclusion, support farmers, artisans and small businesses, and reposition the cooperative sector as a key driver of economic growth.
The disclosure was made during the North-West Zonal Engagement of the Ministerial Advocacy Tour on the Cooperative Bank of Nigeria Share Capital Mobilisation and Cooperative Sector Digitalisation Drive held at the Umaru Musa Yar’Adua Hall, Kaduna.
Speaking at the event, the Minister of State for Agriculture and Food Security and Supervising Minister of Cooperative Affairs, Senator Aliyu Abdullahi, said the proposed bank would serve as a major pillar of the Federal Government’s Renewed Hope Cooperative Reform and Revamp Programme aimed at boosting financial inclusion, agricultural productivity and enterprise development.
Abdullahi said the government planned to mobilise at least 10,000 cooperative societies nationwide to collectively raise about N200bn in equity capital for the bank.
He said, “Through this collective effort, we aim to mobilise approximately N200bn in share capital and establish a strong, sustainable and nationally owned cooperative financial institution capable of supporting agricultural development, enterprise growth, financial inclusion, housing, transportation, value-chain development and wealth creation for millions of Nigerians.”
The minister explained that the ownership structure of the proposed bank had been designed to ensure that cooperative societies retained control while attracting strategic investors.
According to him, 65 per cent of the bank’s equity would be owned by cooperative societies and members through the Cooperative Trust and Investment Society of Nigeria, while 30 per cent would be available to institutional investors, development finance institutions, development partners and qualified individual investors.
He added that five per cent of the equity would be reserved for employees through an Employee Share Ownership Scheme. “Under the proposed ownership framework, 65 per cent of the bank’s equity shall be wholly owned and controlled by cooperative societies and cooperators,” Abdullahi said.
He noted that lessons from previous cooperative financial institutions had informed the design of the new bank, which would be built on transparency, sound governance and regulatory compliance.
“The Cooperative Bank of Nigeria is more than a financial institution; it is the foundation of a broader cooperative economic ecosystem that will unlock opportunities for generations of cooperators and contribute significantly to the realisation of the Renewed Hope Agenda,” he added.
Abdullahi also unveiled plans to digitally transform the cooperative sector through the National Cooperative Digital Architecture Platform.
He explained that the initiative would establish a National Cooperative Smart Registry, a Cooperative Verification Number for registered societies and a Cooperative Member Identification Number, known as CoopID, to improve transparency, eliminate ghost cooperatives and facilitate access to government interventions and financial services.
Earlier, Kaduna State Commissioner for Agriculture, Murtala Dabo, who represented Governor Uba Sani, said the state had recorded significant progress in financial inclusion, with over 2.5 million bank accounts opened for residents previously excluded from the formal financial system.
According to him, financial inclusion remains a central component of Governor Sani’s development agenda. “Over 2.5 million accounts have been opened for previously excluded citizens, while millions more have been integrated into formal economic systems through expanded identity registration and targeted empowerment programmes,” Dabo said.
He stated that the policy had enabled farmers, traders, artisans, women and youths to access government interventions, insurance products and financial services that were previously unavailable to them.
Dabo added that the state had leveraged digital platforms to improve the delivery of agricultural support programmes. “A substantial proportion of the farmers benefiting from Kaduna State’s agricultural programmes today were previously excluded from formal financial services. Through our financial inclusion drive, these farmers have been identified, profiled, banked and integrated into formal economic systems,” he said.
Also speaking, the Provost and Chief Executive Officer of the Federal Cooperative College, Kaduna, Dr Mohammed Ibrahim Awwal, endorsed the proposed Cooperative Bank and the digitalisation programme, describing them as transformative reforms capable of repositioning the cooperative movement.
“Today’s engagement focuses on two transformative initiatives that have the potential to redefine the future of the cooperative movement in our country — the establishment of the Cooperative Bank of Nigeria and the Cooperative Sector Digitalisation Drive,” Awwal said.