Strengthen Cooperatives to Enhance the Capacity of MSMEs in Nigeria – NACCIMA

Dele Oye, the National President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, has called for strengthening cooperative societies to improve the country’s Micro, Small, and Medium Enterprises (MSMEs) capacity.

Oye said cooperative societies needed the right policy to boost their capacity to unlock capital for MSMEs at a recently held 8th National Cooperative Summit Exhibition and Awards 2024.

He observed that MSMEs faced persistent challenges in accessing affordable and sustainable capital, which hindered their economic growth and contribution.

“Traditional financial institutions often impose prohibitive interest rates and stringent lending criteria, making it difficult for SMEs to secure the necessary funding to scale and thrive,” the NACCIMA president said.

Oye referenced the Gateway Cooperative Multipurpose Society in Ogun State and the Lagos State Cooperative Federation as he highlighted how cooperative societies had been bridging the financing gap for SMEs.

He recommended engaging with policymakers to establish a favorable regulatory environment for cooperatives, including advocating for tax incentives, legal protections, and streamlined registration processes.

He also canvassed organizing training programs and workshops focused on financial management, business planning, and governance for cooperative members and carrying out awareness campaigns to educate MSMEs about the benefits of joining cooperative societies.

“Launch awareness campaigns to educate MSMEs about the benefits of joining cooperative societies and how they can access funding through these organizations,” Oye noted.

He urged stronger partnerships between states and cited the Ogun-Lagos Joint Development Commission as a model for how inter-state collaboration could create a more supportive environment for cooperatives and MSMEs.

Oye recommended that the Federal and State Governments invest in research to identify innovative cooperative models and tailor them to the Nigerian context, ensuring they address the unique needs of local MSMEs.

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.