The Federal Government has unveiled plans to raise N200 billion in share capital for the proposed Cooperative Bank of Nigeria as part of efforts to deepen financial inclusion, support farmers and small businesses, and strengthen the cooperative sector’s contribution to economic development.
The initiative was announced on Thursday 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 in Kaduna.
Speaking at the event, Aliyu Abdullahi, Minister of State for Agriculture and Food Security and Supervising Minister of Cooperative Affairs, said the proposed bank would serve as a key component of the Federal Government’s Renewed Hope Cooperative Reform and Revamp Programme.
According to Abdullahi, the government plans to mobilise at least 10,000 cooperative societies across the country to collectively contribute about N200 billion in equity capital for the establishment of the bank.
“Through this collective effort, we aim to mobilise approximately N200 billion 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,” he said.
The minister explained that the ownership structure of the proposed bank was carefully designed to ensure that cooperative societies maintain majority control while attracting strategic investments.
Under the proposed arrangement, 65 per cent of the bank’s equity will be owned by cooperative societies and their members through the Cooperative Trust and Investment Society of Nigeria. Another 30 per cent will be allocated to institutional investors, development finance institutions, development partners and qualified individual investors, while the remaining five per cent will 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 stated.
He noted that lessons learned from previous cooperative financial institutions had influenced the design of the new bank, which would operate on the principles of transparency, sound corporate 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.
As part of broader reforms, the minister also announced plans to digitally transform the cooperative sector through the National Cooperative Digital Architecture Platform.
The initiative will introduce a National Cooperative Smart Registry, a Cooperative Verification Number for registered societies and a Cooperative Member Identification Number, known as CoopID. The measures are expected to improve transparency, eliminate fraudulent cooperatives and enhance access to government interventions and financial services.
Earlier, Kaduna State Commissioner for Agriculture, Murtala Dabo, who represented Governor Uba Sani, highlighted the state’s achievements in promoting financial inclusion.
According to Dabo, more than 2.5 million bank accounts have been opened for residents who were previously excluded from the formal financial system.
“Over 2.5 million accounts have been opened for previously excluded citizens, while millions more have been integrated into formal economicb systems through expanded identity registration and targeted empowerment programmes,” he said.
He noted that the initiative had enabled farmers, traders, artisans, women and youths to gain access to government support programmes, insurance products and financial services previously beyond their reach.
Dabo added that Kaduna State has leveraged digital platforms to improve agricultural support delivery, ensuring that more farmers are identified, profiled and integrated into formal financial systems.
Also speaking, the Provost and Chief Executive Officer of the Federal Cooperative College, Kaduna, Mohammed Ibrahim Awwal, described the proposed Cooperative Bank and sector-wide digitalisation programme as transformative reforms.
“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.
The proposed Cooperative Bank of Nigeria is expected to play a pivotal role in expanding access to finance for cooperative societies, farmers, artisans and small-scale entrepreneurs, while supporting the Federal Government’s broader agenda for economic growth, financial inclusion and sustainable development.
