Cooperative sector can drive Nigeria’s economy — Minister
The Federal Government of Nigeria has reaffirmed its commitment to strengthening cooperative societies as a strategic tool for economic growth, social development, and food security. The Minister of State for Agriculture and Food Security, Aliyu Sabi Abdullahi, made this known during the flag-off of a national intensive training workshop for cooperative trustees, management committees, and managers.
Held at the Federal Cooperative College, Kaduna, the training aims to equip cooperative leaders with the necessary knowledge and skills to enhance the performance of their societies. This initiative is part of the Renewed Hope Agenda, which seeks to reform and revitalize Nigeria’s cooperative sector for greater economic impact.
Abdullahi emphasized the global importance of cooperatives, citing the International Cooperative Alliance (ICA), which reports that over 12% of the world’s population participates in cooperatives, providing employment for 280 million people and generating $2.4 trillion in revenue. With these figures, he highlighted that President Bola Ahmed Tinubu’s administration recognizes the sector as a critical driver of economic development and is actively working towards its reform.
The minister further stated that capacity-building programs will be extended to all 36 states and the Federal Capital Territory (FCT) to empower cooperative societies, ensuring their sustainability and efficiency in contributing to national development.
Dr. I. M. Awwal, Provost of the Federal Cooperative College, Kaduna, in his remarks, underscored the significance of proper cooperative management in achieving economic stability and agricultural growth in Nigeria.
With strong government backing, Nigeria’s cooperative movement is set to become a major force in rural economic empowerment, food security, and agricultural value chain development.
Source- Tribune
Expert Review for Agri-Food Stakeholders
The revitalization of Nigeria’s cooperative sector is a strategic move with far-reaching implications for the agri-food industry, rural development, and economic sustainability. Globally, cooperatives have been recognized as effective models for agricultural transformation, and Nigeria’s commitment to reforming this sector provides a unique opportunity for stakeholders to enhance productivity, increase market access, and improve financial inclusion.
Why Cooperatives Matter in Agribusiness
Cooperatives play a critical role in reducing market barriers, enabling collective bargaining, and ensuring better access to resources. In Nigeria, where smallholder farmers dominate food production, cooperatives can help bridge critical gaps in finance, infrastructure, and technology adoption.
According to the International Cooperative Alliance (ICA), cooperatives globally provide stable employment and generate substantial revenues. Nigeria can leverage this model to strengthen its agricultural value chains and create a more inclusive and resilient economy.
Key Benefits for Stakeholders
1. For Farmers & Agro-Producers
- Access to Inputs & Resources: Cooperatives facilitate bulk purchasing of seeds, fertilizers, and machinery, reducing costs for individual farmers.
- Collective Bargaining Power: Farmers can negotiate better prices for their produce and obtain fairer deals from buyers and processors.
- Access to Finance & Credit: Many smallholder farmers struggle with limited access to credit, but cooperatives provide a structured platform for financial support, helping members secure loans and investment capital.
- Capacity Building & Training: The government’s initiative to train cooperative leaders will empower farmers with knowledge on best agricultural practices, technology use, and business management.
2. For Agri-Processors & Distributors
- Steady Supply of Raw Materials: Cooperatives aggregate produce, ensuring processors and manufacturers have a consistent supply of raw materials for food processing.
- Improved Supply Chain Efficiency: With better organization, the movement of goods from farms to markets becomes smoother and more predictable.
- Value Addition & Market Expansion: Cooperatives can invest in storage and processing facilities, reducing post-harvest losses and creating new market opportunities.
3. For Investors & Policymakers
- Reduced Investment Risks: Cooperatives provide structured engagement platforms, making it easier for investors to support multiple farmers collectively, thereby reducing risks associated with individual smallholder investments.
- Job Creation & Economic Growth: The cooperative model promotes rural employment, supporting both direct farming activities and agri-support services such as logistics, warehousing, and agritech innovations.
- Sustainability & Food Security: By strengthening cooperatives, Nigeria can enhance food production, stabilize prices, and improve national food security.
Strategic Implications for Nigeria’s Agricultural Future
1. Financial Inclusion & Microcredit Growth
- With better access to credit and financial services, farmers can invest in improved seeds, mechanization, and irrigation, leading to higher yields and better quality produce.
- Cooperative societies also provide a safety net for farmers, offering insurance schemes and emergency funds in times of crisis.
2. Market Access & Export Potential
- Cooperatives create direct linkages between farmers and buyers, reducing the influence of middlemen and ensuring higher returns for producers.
- A well-structured cooperative system can also help Nigeria compete in the international market, as cooperatives have been successful in export-driven agribusiness models globally.
3. Post-Harvest Loss Reduction
- One of the biggest challenges in Nigeria’s agriculture sector is post-harvest losses, which account for nearly 40% of food production. Cooperatives can invest in shared storage, processing, and transportation infrastructure, significantly cutting down losses and increasing profitability.
4. Technology & Digital Integration
- With the rise of agritech solutions, cooperatives can adopt digital platforms for market intelligence, weather forecasting, and e-commerce, ensuring smarter farming and efficient sales processes.
- Mobile banking and digital payment systems can streamline cooperative financing, making it easier for members to access funds and make transactions securely.
A Call to Action for Stakeholders
For Nigeria’s agricultural sector to fully capitalize on the cooperative model, stakeholders must take proactive steps to engage, invest, and innovate.
- Farmers & agro-businesses should actively participate in cooperative societies to leverage the benefits of collective growth and bargaining power.
- Investors & financial institutions should explore cooperative-backed financing models to facilitate more sustainable agribusiness investments.
- Government & policymakers must ensure continuous capacity-building programs to improve the governance and management of cooperatives across the country.
As Nigeria seeks to enhance food security, rural development, and economic diversification, cooperative societies will remain a key pillar in driving transformation within the agri-food sector. With proper management, support, and investment, cooperatives can elevate Nigeria’s agriculture into a competitive and sustainable industry.
