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The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, Dele Oye, has advocated the strengthening of cooperative societies to enhance the capacity of Small and Medium Enterprises in the country.
Oye stated that cooperative societies require policies to boost their ability to unlock capital for SMEs, as they face persistent challenges in accessing affordable and sustainable funding, which has hindered their growth and contribution to the economy.
The NACCIMA president noted that traditional financial institutions often imposed prohibitive interest rates and stringent lending criteria, making it difficult for SMEs to secure the necessary funding to scale up and thrive.
Oye highlighted how cooperative societies in Ogun State and Lagos State had been addressing the financing challenges faced by small and medium-sized enterprises.
He recommended engagements with policymakers to create a supportive regulatory environment for cooperatives, including advocating for tax incentives, legal protections, and simplified registration processes.
He also called for organising training programmes and workshops focused on financial management, business planning, and governance for cooperative members, and conducting awareness campaigns to educate SMEs about the benefits of joining cooperative societies.
"Awareness campaigns should be launched to educate SMEs about the benefits of joining cooperative societies and how they can access funding through these organisations," Oye suggested.
He encouraged stronger partnerships between states, citing the Ogun-Lagos Joint Development Commission as a model for how inter-state collaboration could create a more supportive environment for cooperatives and SMEs.
Oye recommended that the Federal and State Governments invest in research to identify innovative cooperative models and adapt them to the Nigerian context, ensuring they address the unique 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, the country has more than 30 million members in cooperative societies across its 36 states and the FCT.
