Encouraging the enhancement of cooperative societies is crucial for boosting the capacity of Small and Medium Enterprises (SMEs) in Nigeria, according to Dele Oye, the National President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture.
Speaking at the 8th National Cooperative Summit Exhibition and Awards 2024, Oye emphasized the necessity of policies to empower cooperative societies in unlocking capital for SMEs.
The challenges faced by SMEs in accessing affordable and sustainable capital have impeded their growth and overall contribution to the economy, Oye noted.
In addressing these issues, Oye highlighted the role of cooperative societies such as the Gateway Cooperative Multipurpose Society in Ogun State and the Lagos State Cooperative Federation.
He urged for collaboration with policymakers to establish a conducive regulatory framework for cooperatives, advocating for tax benefits, legal safeguards, and simplified registration procedures.
Additionally, Oye stressed the importance of conducting training sessions and workshops focusing on financial management, business planning, and governance for cooperative members, as well as launching awareness campaigns to educate SMEs on the advantages of joining such societies.
He called for stronger partnerships between states, citing the Ogun-Lagos Joint Development Commission as a model for interstate cooperation to create a more supportive environment for cooperatives and SMEs.
Oye recommended that both Federal and State Governments invest in research to develop innovative cooperative models tailored to the local context, addressing the specific needs of Nigerian SMEs.
According to Mr. Emmanuel Atama, the Executive Secretary/CEO of the National Cooperative Financing Agency of Nigeria, as of April 2023, there are over 30 million members in cooperative societies across Nigeria’s 36 states and the FCT.