The Federal Government has announced plans to establish the Cooperative Bank of Nigeria with a target share capital of N200 billion, aimed at expanding financial inclusion and providing stronger support for farmers, artisans, traders, and small businesses across the country.
The announcement was made during a stakeholder engagement programme on Cooperative Bank Share Capital Mobilisation and Cooperative Sector Digitalisation held in Kaduna.
Speaking at the event, the Minister of State for Agriculture and Food Security and Supervising Minister of Cooperative Affairs, Senator Aliyu Abdullahi, said the proposed bank is a key component of the government’s cooperative reform agenda designed to improve access to finance, boost agricultural productivity, and encourage enterprise development.
According to him, the government intends to bring together at least 10,000 cooperative societies nationwide to collectively raise the N200 billion equity capital required for the bank’s establishment.
He explained that the new financial institution is expected to support agriculture, housing, transportation, value-chain development, business expansion, and wealth creation for millions of Nigerians.
Abdullahi stated that the ownership structure of the bank has been carefully designed to ensure cooperative societies maintain majority control. Under the arrangement, 65 percent of the bank’s equity will be owned by cooperative societies and their members through the Cooperative Trust and Investment Society of Nigeria. Another 30 percent will be available to institutional investors, development finance institutions, development partners, and qualified individual investors, while the remaining five percent will be allocated to employees through a share ownership programme.
The minister noted that the bank’s framework incorporates lessons from previous cooperative financial institutions and will prioritise transparency, strong governance, and full regulatory compliance.
He described the Cooperative Bank of Nigeria as a vital platform that will strengthen the cooperative sector and contribute significantly to economic growth and financial empowerment.
As part of broader reforms, Abdullahi also announced plans to digitise the cooperative sector through the National Cooperative Digital Architecture Platform. The initiative will introduce a National Cooperative Smart Registry, a Cooperative Verification Number for registered societies, and a Cooperative Member Identification Number known as CoopID. The system is expected to improve transparency, eliminate fraudulent cooperatives, and simplify access to government support programmes and financial services.
Representing the Kaduna State Government, Commissioner for Agriculture Murtala Dabo highlighted the state’s progress in financial inclusion, revealing that more than 2.5 million previously unbanked residents have been brought into the formal financial system.
He said the initiative has enabled farmers, traders, artisans, women, and youths to gain access to financial services, insurance products, and government intervention programmes. Dabo added that digital tools have also enhanced the implementation of agricultural support schemes, helping more farmers benefit from government initiatives.
The Provost and Chief Executive Officer of the Federal Cooperative College, Kaduna, Dr Mohammed Ibrahim Awwal, expressed support for both the proposed Cooperative Bank and the digitalisation programme, describing them as major reforms that could significantly strengthen and modernise Nigeria’s cooperative movement.
