Ossai: To Grow Entrepreneurship In Nigeria, Government Should Support Cooperatives
adminCooperative societies provide a unique tool for achieving economic goals in an increasingly competitive global economy.
As governments cut services and withdraw from regulating markets, cooperatives have become mechanisms to manage risk for members in cooperatives and help salary/wage earners save for the future through monthly contributions that are deducted from the source.
They strengthen the communities in which they operate through provision of jobs and sources of funds for members to start businesses and other ventures
Cooperative societies in Nigeria have aided the accumulation of resources and the promotion of agricultural export crops and thereby helping to increase the volume of foreign exchange which is needed for economic development and transformation. Cooperatives provide an economic boost to the community as well.
However, Mr. Iyke Fidel Ossai, the Executive Director of Studies at Covenant Multi-purpose Cooperative Society Limited, Lagos, told Daily Independent that despite their contributions to the development of the economy, cooperatives are not appreciated and given the financial support they need to thrive.
He stressed the need for the government to support cooperative societies in the country so that they will develop the capacity to give more loans to their members so that they grow their businesses and grow the national economy in the process.
He said that cooperative societies are the closest institution to people at the grassroots and people he described as “the economically active poor.”
He stated that Covenant Multi-purpose Cooperative Society Limited offers car loans, business loans, education loans, and others and organizes training for members in a bid to equip them with skills to establish and grow their businesses.
According to him, “We work with the active poor in society – the small-time traders, mechanics, tailors, akara (bean cake) sellers, pepper sellers and others; as they become members of the organization, they are able to access small loans to start or grow their businesses. Some of them get N10,000, N20,000, N30,000 and so on. We also encourage them to save. Members of the cooperative society also get other benefits.”
He disclosed that the society is two years old, adding that the harsh economic situation has hampered the operations of the society.
“The cashless policy of the Central Bank of Nigeria negatively impacted the operations of our members and many of them had to withdraw their savings from the cooperative and the ability of the society to give loans and do other projects was curtailed. Cooperatives operate mainly with the savings of their members,” Ossai stated.
He disclosed that the cash crunch that resulted from the cashless policy reduced the capacity of the society to give loans to members. Ossai argued that the government at different levels in the country is not supporting the activities of cooperatives, adding that the government should provide a conducive environment for cooperative societies to thrive.
He stated that the Ministries in charge of Cooperatives across the Country and the federal government should support the work of cooperatives so that they can impact Nigerians more.
He urged the government to use cooperatives to reach out to the poor in society and raise them out of poverty.
He counseled young people to learn a trade, adding that they should learn a trade while in school.
“Learn a trade even while you are in school and this will help you to augment what your parents give to you. Jobs are not easy to find and you need to do something to support you. Entrepreneurship is the way to in the Nigerian economy,” he stated.
Ossai disclosed that the cooperative has established Covenant Coop Business School, which is designed to “raise modern businessmen and women to succeed in our new economy.”
He added that the school will offer executive certificate courses in business management, adding that the courses had started at the school’s headquarters at Egbe Road in the Ejigbo area of Lagos State.
SOURCE: https://independent.ng/
