The Federal Government has announced plans to clamp down on unregistered and fraudulent cooperative societies as part of a broader reform effort to revitalize the sector and enhance food security.
The initiative, led by the Ministry of Agriculture and Food Security, aims to ensure that only legally recognized and accountable cooperatives operate in Nigeria.
According to The PUNCH, the Minister of State for Agriculture and Food Security, Senator Aliyu Abdullahi, expressed concerns over the rise of fraudulent cooperatives.
He warned that the government would take decisive steps to sanitize the system, ensuring that cooperative societies function transparently and in line with their intended purpose.
“We are not just interested in registering cooperatives but in ensuring they operate for the purpose they claim,” Abdullahi stated. “It is alarming to see individuals exploit cooperative societies for fraudulent activities. Just recently, in my community, someone swindled people under the guise of a cooperative society.”
The minister emphasized that the reform aligns with President Bola Tinubu’s Renewed Hope Agenda and is designed to curb abuse within the sector.
“There are many irregularities even among registered cooperatives, and we must put an end to them. This reform is about ensuring transparency, accountability, and inclusivity,” he added.
As part of the reform agenda, the ministry is reviewing the Final Report of the Ministerial Technical Working Group on the Cooperative Reform and Revamp Programme to develop an effective implementation strategy.
Key areas of focus include restructuring the Federal Department of Cooperatives and repositioning Federal Cooperative Colleges to enhance their role in training and educating young Nigerians.
“Our goal is to ensure these institutions provide high-quality education and equip young people with the skills needed to thrive in today’s economy,” Abdullahi said.
The minister also highlighted the importance of learning from global best practices, particularly in capital mobilization, to make cooperative financing more accessible.
“We must mirror successful models from other countries where cooperatives have significantly contributed to economic development. Making access to cooperative capital easier is a critical part of our strategy,” he noted.
Echoing the minister’s sentiments, the Director of the Federal Department of Cooperatives, Sani Aliu, stressed that Nigerian cooperatives must be more productive and contribute meaningfully to national development.
“The ministry’s reform programme is aimed at revitalizing the cooperative sector so it can generate income and support the nation’s socioeconomic growth,” Aliu said.
The government is also seeking collaboration with the private sector and civil society organizations to drive the success of the initiative.
“Our success will depend on partnerships. We are committed to working closely with cooperative societies, private businesses, and civil society groups to ensure this reform is effective and sustainable,” Abdullahi concluded.
