Minister Pledges Action on IPPIS Unremitted Cooperative Deductions, Banking Restrictions and Financial Inclusion Challenges

…As the Federal Government Inaugurates National Steering Committee for Renewed Hope Cooperative Reform and Revamp Programme

Abuja, Nigeria | June 2, 2026

The Federal Government has pledged decisive action to address the growing challenges of the persistent problem of delayed and non-remittance of cooperative members’ deductions made from Ministries, Departments and Agencies (MDAs) through the Integrated Personnel and Payroll Information System (IPPIS), banking restrictions affecting cooperative societies, and other barriers limiting financial inclusion across Nigeria.

The commitment was made by the Honourable Minister of State for Agriculture and Food Security and Supervising Minister of Cooperative Affairs in Nigeria, Senator Dr. Aliyu Sabi Abdullahi, CON, during the inauguration of the National Steering Committee (NSC) of the Renewed Hope Cooperative Reform and Revamp Programme (RH-CRRP) held at the Federal Ministry of Agriculture and Food Security (FMAFS) Headquarters, Abuja.

The inauguration marks another major milestone in the implementation of the RH-CRRP 2025–2030, a transformative national framework approved by the National Council on Cooperative Affairs (NCCA) to reposition Nigeria’s cooperative sector as a strategic vehicle for food security, economic growth, job creation, poverty reduction, financial inclusion, and social empowerment, aligning with the Renewed Hope Agenda of President Bola Ahmed Tinubu GCFR.

Speaking at the event, Senator Abdullahi reaffirmed the commitment of the Federal Government to building a modern, transparent, digitally enabled, and investment-ready cooperative ecosystem capable of contributing significantly to national development and the realization of President Bola Ahmed Tinubu’s Renewed Hope Agenda.

According to the Minister, the newly inaugurated National Steering Committee will serve as the apex coordinating, oversight, advisory, and policy-guidance body responsible for driving the implementation of key reform initiatives under the RH-CRRP, including cooperative governance reforms, sector digitalization, establishment of the Cooperative Bank of Nigeria, legal and regulatory modernization, value-chain development, capacity building, and targeted empowerment programmes for youth, women, and Persons with Disabilities (PWDs).

‘’It is for this reason that the RH-CRRP provides for the establishment of a National Steering Committee (NSC) to serve as the apex coordinating and policy-guiding body for the Programme,” the Minister stated.

The Minister mentioned that the NSC would focus on strengthening cooperative governance and institutions, driving nationwide cooperative sector digitalization through the National Cooperative Smart Registry (NCSR), Cooperative Verification Number (CVN), and Cooperative Member Identification Number (CoopID), among other objectives.

He charged members to approach this assignment with patriotism, professionalism, integrity, a deep commitment to national development, and to work collaboratively.

He added that ‘’the success of the RH-CRRP will not be measured by the number of meetings held or reports produced” but by the number of cooperatives strengthened, farmers empowered, jobs created, enterprises established, citizens financially included, and communities transformed’’.

In his remarks, the Permanent Secretary in the Ministry, Engr. Dr Marcus Olaniyi Ogunbiyi stated that the Committee would provide strategic leadership, coordination, and oversight for the successful implementation of the RH-CRRP in the country. He further read out the Terms of Reference of the RH-CRRP National Steering Committee (NSC)

In his welcome address, the Federal Director of Cooperatives, Dr. Mohammed Bashir Abdulkadir, described the inauguration as a historic milestone in Nigeria’s cooperative development journey. He noted that despite the enormous contributions of cooperatives to livelihoods, food security, social cohesion, and economic growth, the sector continues to face challenges such as weak governance structures, inadequate financing, outdated legal frameworks, limited access to technology, and institutional constraints.

He explained that the RH-CRRP was developed by the Federal Ministry of Agriculture and Food Security as a comprehensive reform framework designed to modernize, digitalize, strengthen, and reposition cooperatives as strategic engines of inclusive economic growth, rural development, and national prosperity.

The composition of the National Steering Committee reflects the Federal Government’s whole-of-government approach to cooperative sector reform. Membership comprises representatives of key Ministries, Departments and Agencies (MDAs) and strategic institutions, including the Federal Ministry of Finance, Central Bank of Nigeria (CBN), Federal Ministry of Communications, Innovation and Digital Economy, Federal Ministry of Industry, Trade and Investment, National Identity Management Commission (NIMC), Nigeria Revenue Service (NRS), National Bureau of Statistics (NBS), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Bank of Agriculture (BoA), Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), National Agricultural Insurance Corporation (NAIC), National Agricultural Development Fund (NADF), National Orientation Agency (NOA), Securities and Exchange Commission (SEC), Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices and Other Related Offences Commission (ICPC), and the Nigeria Financial Intelligence Unit (NFIU), Agricultural Credit Guarantee Scheme Fund (AcGCF), National Board for Technical Incubation (NBTI) alongside leaders of the cooperative movement, development partners, organized private sector institutions, and civil society organizations.

The broad-based representation is expected to strengthen policy coordination, stakeholder engagement, regulatory support, and effective implementation of the RH-CRRP across the federation.

Stakeholders Raise Concerns Over Unremitted Deductions and Banking Barriers

A major highlight of the inauguration was the stakeholders’ engagement session, during which leaders of the cooperative movement raised critical issues affecting cooperative societies nationwide.

The Executive Secretary of the Nigeria Police Cooperative Society and the Executive Secretary of the National Cooperative Financing Agency of Nigeria (CFAN) drew the attention of the Minister to the persistent problem of delayed and non-remittance of cooperative members’ deductions by some Ministries, Departments and Agencies (MDAs) through the Integrated Personnel and Payroll Information System (IPPIS).

According to the stakeholders, several cooperative societies are currently owed billions of naira in deductions already made from members’ salaries but not yet remitted, creating severe liquidity constraints and limiting the ability of cooperatives to provide loans, welfare support, and other essential financial services to their members.

Responding to the concerns, Senator Abdullahi disclosed that similar complaints were recently brought to his attention by members of the Borgu Savings and Credit Cooperative Society during a courtesy visit to his hometown during the recent Eid-el-Kabir celebrations.

The Minister acknowledged that the challenge appears widespread and poses significant implications for cooperative development, financial inclusion, and the welfare of millions of cooperative members nationwide.

He assured stakeholders that the Federal Government would engage the Office of the Accountant-General of the Federation (OAGF) and other relevant institutions to investigate the matter, identify the root causes, and develop lasting solutions.

The Minister further revealed that he would seek the support and collaboration of the Honourable Minister of Finance and Coordinating Minister of the Economy to convene relevant stakeholders and facilitate a comprehensive resolution of the issue.

According to him, prompt remittance of cooperative deductions is essential for strengthening cooperative institutions, protecting members’ savings, improving access to affordable finance, and advancing the financial inclusion objectives of the Renewed Hope Agenda.

Minister Moves to Address Banking Restrictions

Stakeholders also raised concerns over the growing practice by some commercial banks of demanding Corporate Affairs Commission (CAC) registration certificates and Tax Identification Numbers (TIN) as mandatory requirements for cooperative societies seeking to open and operate bank accounts.

Participants argued that the practice has created significant barriers for many legally registered cooperative societies operating under the Nigerian Cooperative Societies Act, thereby excluding them from access to formal banking services and financial opportunities.

In response, Senator Abdullahi noted that cooperative societies are established and regulated under the Nigerian Cooperative Societies Act and enjoy specific legal recognition under the Nigeria Tax Act 2025 and the Nigeria Tax Administration Act (NTAA) 2025.

He stressed the need for greater awareness among financial institutions regarding the legal status of cooperative societies and called for regulatory clarity to eliminate unnecessary obstacles to their operations.

To address the matter, the Minister announced plans to engage the Bankers’ Committee, the Central Bank of Nigeria (CBN), the Nigeria Revenue Service (NRS), and other relevant regulatory institutions to harmonize requirements and ensure that cooperative societies are not unjustly excluded from the formal financial system.

He emphasized that expanding access to formal financial services remains a critical component of the Federal Government’s strategy for cooperative development, grassroots wealth creation, and inclusive economic growth.

Driving a New Era of Cooperative Transformation

The RH-CRRP is anchored on seven strategic pillars, namely: Cooperative Governance and Institutional Reforms; Cooperative Financing and the Establishment of the Cooperative Bank of Nigeria; Cooperative Sector Digitalization and Data Management Systems; Capacity Building and Cooperative Education; Value Chain Development and Market Access; Youth, Women and Persons with Disabilities (PWDs) Inclusion and Empowerment; and Strategic Partnerships and Investments.

The National Steering Committee is expected to oversee the implementation of transformative initiatives such as the National Cooperative Smart Registry (NCSR), Cooperative Verification Number (CVN), Cooperative Member Identification Number (CoopID), Cooperative Bank of Nigeria, legal and policy reforms, performance monitoring systems, and nationwide stakeholder engagement programmes.

Stakeholders at the event expressed confidence that the Committee would provide the leadership, coordination, and accountability required to transform the cooperative sector into a modern, resilient, technology-driven, and globally competitive ecosystem capable of delivering tangible socio-economic benefits to millions of Nigerians.

The discussions and resolutions reached during the inauguration reinforced the Federal Government’s commitment to creating an enabling environment for cooperative growth, strengthening governance, deepening financial inclusion, protecting cooperative members’ interests, and unlocking the vast potential of the cooperative movement as a catalyst for sustainable national development.

As the Renewed Hope Cooperative Reform and Revamp Programme gains momentum, stakeholders believe that addressing the issues of unremitted deductions, banking barriers, and institutional reforms will be critical to building a stronger, more inclusive, and prosperous cooperative sector for Nigeria.

Coop! Coop!! Coop!!! Cooperatives!!!
Where? Here! There!! Everywhere!!!