The Federal Government has unveiled plans to establish the Cooperative Bank of Nigeria and introduce a nationwide digital identity system for cooperative societies and their members. This initiative aims to reposition the sector for economic growth, financial inclusion, and food security.
Minister Announces New Reforms
Dr Aliyu Sabi Abdullahi, the Minister of State for Agriculture and Food Security, made this disclosure in Lagos during the South-West Zonal Engagement of the Ministerial Advocacy Tour on Cooperative Bank Share Capital Mobilisation, Sensitisation and Cooperative Sector Digitalisation Drive. He emphasized that the initiative is designed to strengthen cooperative financing and modernize the sector.
The proposed Cooperative Bank of Nigeria will provide accessible and affordable financial services to cooperators, farmers, artisans, traders, Small and Medium Enterprises (SMEs), women, youth, and Persons with Disabilities (PWDs).
Ownership Structure
Abdullahi explained that the ownership structure of the proposed bank will allocate 65% controlling equity to cooperative societies, unions, and federations. Private and institutional investors will hold 30% non-controlling equity, while employees of the bank and affiliated cooperative enterprises will hold 5% equity. He stressed that the initiative is government-enabled rather than government-funded, with the Federal Government focusing on policy support, stakeholder coordination, and regulatory facilitation.
Digital Identity System
The minister also announced plans for a nationwide digitalisation framework for the cooperative sector. This includes the introduction of a Cooperative Verification Number (CVN) for registered societies and a Cooperative Members Identification Number (CoopID) for individual members. These digital identity systems will help eliminate fraudulent cooperatives, improve transparency and accountability, strengthen investor confidence, and integrate cooperators into Nigeria’s formal economic system. Both systems will be linked to the National Identity Number (NIN) database to ensure harmonization with national data systems.
Support for Agribusiness
During the Xtralarge Agriwealth Revolution Summit held in Lagos, Dr Moji Davids, Group Managing Director of Xtralarge Farms & Resorts, highlighted the need to transform agriculture into a more profitable and sustainable enterprise. She stated that Nigeria needs agripreneurs, not more farmers, to create wealth across the agricultural value chain through processing, branding, logistics, and market access.
Davids argued that the country already has enough people engaged in farming, but many remain trapped in poverty due to the absence of structured business systems. She called for a shift in focus from merely encouraging people to farm to building sustainable agribusinesses capable of generating wealth and employment.
Additional Investments
The reform programme will also support investments in cooperative housing, transport, agro-processing, retail, logistics, and digital platform services through the proposed Cooperative Trust and Investment Society of Nigeria (CoopTrust).
