The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, Dele Oye, has advocated the strengthening of cooperative societies to enhance the capacity of Small and Medium Enterprises in the country.
Oye said cooperative societies needed policy to boost their capacity to unlock capital for SMEs at a recently held 8th National Cooperative Summit Exhibition and Awards 2024.
He observed that SMEs faced persistent challenges in accessing affordable and sustainable capital, which had hindered their growth and contribution to the economy.
“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 favourable regulatory environment for cooperatives, including advocating for tax incentives, legal protections, and streamlined registration processes.
He also canvassed organising training programmes and workshops focused on financial management, business planning, and governance for cooperative members and carrying out awareness campaigns to educate SMEs about the benefits of joining cooperative societies.
“Launch awareness campaigns to educate SMEs about the benefits of joining cooperative societies and how they can access funding through these organisations,” 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 SMEs.
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 SMEs.
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.