Edo State: Ministry Cautions Stakeholders on using Cooperative Fund to invest in Ponzi Schemes

The Ministry of Business, Trade, and Cooperatives (MBTC) Edo State, wants to make it crystal clear that investing in Ponzi schemes with the Cooperative Fund is a big no-no. We strongly advise all stakeholders to steer clear of these fraudulent schemes, which have the potential to cause significant financial losses. It is our duty as your regulators to help safeguard the interests of all cooperative members and stakeholders in Edo State, and we will not tolerate any behavior that undermines their financial security. By heeding our warning and avoiding these illegitimate schemes, you can protect your hard-earned investment and help us maintain a secure financial environment for all. Also, by avoiding these fraudulent schemes, you can protect your investment and ensure you don’t suffer any losses. With your cooperation, we can safeguard the financial security of all stakeholders in Edo State.

The Director of Cooperative Services in Edo State, Mrs. Enoma Efeomo,  gave a stern warning to executives of Cooperative societies reported to have been dealing with such schemes when presenting her papers titled “Cooperative Legal Framework: The Bye-Laws as Effective Tools” and also warned attendees about the importance of complying with the State cooperative laws.

According to Efeomo, “The ministry gives a guide (By-laws) upon registration of a cooperative, expecting that after a while, such by-laws are amended to suit specific needs of the cooperative society.

She further stated that It’s important to note that the Ministry of Business, Trade, and Cooperatives only regulates registered cooperatives and does not decide on loan distribution.

The Ministry is not responsible for the daily operations of cooperatives; it is the responsibility of their members and leadership, according to Efeomo.

Cooperatives that are not registered with the Department of Cooperatives are operating illegally, Hence, all Cooperatives operating within the State must register with the Ministry of Business Trade and Cooperative as Cap 45 of 1976 makes it mandatory in Edo state, Efeomo noted.

She emphasized that the bylaws are the “Bible” of every cooperative society, as they are tailored to suit the unique needs of each cooperative.

During the event, earlier on, Honorable Patrick Iria Uanseru, the Commissioner of the Edo State Ministry of Business Trade and Cooperatives (MBTC), emphasized the significance of cooperative society as a business model. He described it as a serious business and urged stakeholders and trustees of cooperative societies in Edo South Senatorial District to recognize its importance. The Permanent Secretary represented the commissioner at a 2-day workshop organized for Cooperatives and Cooperators in the State, where he charged the attendees in his welcome address.

The two-day workshop held in Benin City with the theme “Consolidating the Gains of Cooperative Societies in Edo State” was organized by the Ministry in collaboration with the Edo Cooperative Federation and supported by LAPO Microfinance Bank. The event took place at the John Odigie Oyegun Public Service Academy (JOOPSA), which is a state-of-the-art training facility providing high-quality learning and development opportunities for public servants in Edo State.

“It is my pleasure to welcome you to this workshop. I am confident that you will find the sessions both informative and engaging. We are committed to achieving our common goals through collaboration and interaction during this event”.

The Commissioner said, “Let’s work together to make Edo State a model of progress and development.”

During the workshop, he reminded participants that the government of Edo State was committed to enhancing the well-being of its citizens.

I want to emphasize one important point that you should keep in mind regarding this workshop. The Edo State Government, led by His Excellency Mr. Godwin Obaseki, is genuinely committed to your well-being and is your reliable partner in progress.

Hon. Uanseru said, “I’m thrilled to welcome you all to this workshop. Let’s work together to make Edo great again.”

Mr. Filani Ojo, the President of the Edo Cooperative Federation, urged operators of Cooperatives to appoint responsible executives who can administer loans without bias and ensure justice for everyone. He emphasized the need for everyone to be given a sense of belonging.

Joel Edionwe, former Permanent Secretary of MBTC, spoke on the importance of cooperative governance. He emphasized that cooperative businesses can contribute to a resilient economy and provide members with opportunities to acquire knowledge.

Dr. Osamede Ugiagbe, speaking on “Cooperative Evolution and Bookkeeping”, opined that, cooperative societies just like any economic entity are required to keep proper and up-to-date records of their business transactions adding that, that the excellent performance of any cooperative society depends largely on proper bookkeeping.

Mrs. Lillian Ehigiamusoe and representatives from the Lift Above Poverty Organization (LAPO) showcased the organization’s products.

During his talk on “Cooperative Loan Management,” Rev. Aideyan Eghosa Joseph advised participants to avoid making decisions based on emotions to prevent future problems.

He believes that the character and integrity of loan applicants should be taken into consideration, and that applicants must provide capable sureties before the loan proceeds are released. He also recommends that the sureties should be informed of the exact amount they are guaranteeing.

The training session was organized for cooperatives and cooperators in Edo South Senatorial District. Over 170 participants attended the session. The training will continue in Edo Central and North Senatorial Districts on December 6th and 7th, respectively. The sessions will take place at Irrua Specialist Hospital and Etsako West Local Government Area.