World Bank Flags Regulation, Tech Deficits as Key Obstacles to Cooperative Sector Growth in Nigeria
The World Bank has issued a timely call for a paradigm shift in Nigeria’s cooperative sector, urging stakeholders to address persistent regulatory bottlenecks and technology adoption gaps that continue to stifle growth and exclude grassroots entrepreneurs from formal economic participation.
Delivering the keynote at a two-day conference in Abuja—organised by the National Cooperative Financing Agency of Nigeria (CFAN) in collaboration with the Abuja Cooperative Federation—World Bank Lead Consultant, Dave Grace, emphasised that Nigerian cooperatives are lagging behind their global peers due to outdated practices and weak regulatory frameworks.
According to Grace, who joined virtually, embracing digital innovation and strengthening regulatory enforcement are imperative if cooperatives are to serve as viable vehicles for financial inclusion, rural development, and microeconomic stability.
“Around the world, cooperative societies are riding the wave of digital transformation to reach underserved communities, cut operational costs, and deepen transparency. Nigeria cannot afford to be left behind,” he warned.
Why Cooperatives Matter in Nigeria’s Economic Equation
Cooperatives—largely community-driven, member-owned enterprises—play a critical but often underestimated role in Nigeria’s informal and rural economies. They facilitate savings, credit access, and mutual support for millions excluded from traditional banking systems. Yet, their potential remains underutilized, constrained by policy inertia, limited digital literacy, and structural inefficiencies.
According to CFAN Executive Secretary, Mr. Emmanuel Atama, the Abuja conference, themed “Repositioning Cooperatives to Deliver on Inclusive Growth and Development,” was convened to “chart a path toward global best practices in cooperative governance, regulation, and innovation.”
“There are serious information and regulatory gaps within the sector,” Atama admitted. “Cooperatives must move beyond outdated manual processes and embrace the digital and data-driven future. Regulators, in turn, must be more proactive in inspections, compliance enforcement, and capacity building.”
Regulatory Weakness: The Elephant in the Room
A key takeaway from the World Bank’s findings—reinforced by multiple Nigerian stakeholders at the conference—is that many cooperatives operate below global governance standards due to insufficient regulatory oversight.
CFAN President Alhaji Muhammed Zakari did not mince words, noting that accountability and transparency are non-negotiable for the long-term viability of cooperative societies.
“Without accountability, cooperatives are doomed to fail. Strong internal controls and timely reporting are crucial if the movement is to earn trust and scale impact,” Zakari said.
He also highlighted the need to operationalise the Cooperative Development Fund (CDF) as a sustainable alternative to traditional government subventions, enabling cooperatives to access structured financing for expansion and service delivery.
A Call to Reinvent the Cooperative Ecosystem
Representing the Federal Director of Cooperatives, Alhaji Idris Sani, senior official Patricia Dara reinforced the government’s commitment to deepening compliance, innovation, and financial discipline in the sector.
“Through stakeholder engagements, policy reviews, and capacity building, we aim to build a culture of good governance within the cooperative movement. But challenges like weak internal control systems and poor access to finance still persist,” she said.
The conference, which drew participants from across Nigeria’s 36 states, was widely praised for providing a much-needed platform for strategic dialogue and collaboration.
Amandine Kouakou, President of Akilaah National Cooperative Society, advocated for the CDF to become a central instrument in repositioning cooperatives as credible and self-reliant entities.
Mr. Emmanuel Noah, President of the Non-Governmental Association for Literacy Support Services (NOGALSS), commended CFAN’s leadership in rallying stakeholders toward a more forward-thinking, tech-enabled cooperative model.
BRANDECONOMY Analysis: The Time for Cooperative Reinvention Is Now
At a time when Nigeria faces an economic crunch, widespread joblessness, and deepening poverty, the cooperative movement holds untapped potential to drive inclusive growth, rural finance, and community resilience. However, this potential will remain dormant unless the sector undergoes strategic reinvention—rooted in regulatory reform, digital transformation, and capacity enhancement.
The World Bank’s timely intervention serves as a wake-up call. Cooperatives must be treated not as charity organisations but as critical instruments of microeconomic empowerment and financial democratization. For that to happen, both policy and practice must evolve—quickly and decisively.
As BRANDECONOMY continues to track sectoral developments, one truth remains clear: the future of cooperatives in Nigeria will depend not on intention, but on implementation.
Stay with us for ongoing coverage and expert analysis on the financial, regulatory, and digital transformation of Nigeria’s cooperative economy.
