Millions of Nigerians who depend on cooperative societies for credit and savings are at growing risk of financial setbacks, as manual dues collection methods remain the norm across the country.
A 2024 study from Nnamdi Azikiwe University revealed that over 70% of cooperatives still rely on handwritten ledgers and informal cash contributions, leaving them exposed to defaults, disputes, and operational breakdowns. Even outright theft is not uncommon.
Cooperatives are vital financial safety nets for millions of Nigerians, especially in underbanked communities.
But as default rates rise and reconciliation periods become chaotic, a growing number of cooperatives are re-evaluating how they operate, and turning to technology for help.
“We use notebooks and WhatsApp to track payments,” says Iyabo Adebayo, treasurer of a 70-member women’s cooperative in Ibadan. “If someone misses their payment, it takes me days to follow up. Sometimes I just give up.”
This challenge isn’t isolated. The same 2024 study documented how manual tracking of dues and loans in staff cooperatives significantly reduced liquidity and increased the rate of defaults. During peak periods like June, when many cooperatives conduct financial audits, the consequences of poor tracking become more severe.
Recognising this pattern, a growing number of cooperatives are now implementing mandate-based systems like PaywithAccount, a direct debit payment tool developed by OnePipe.
The platform enables members to authorise automated deductions for recurring dues, removing friction, improving predictability, and reducing administrative overhead.
“The moment we switched to a structured mandate system, collections became smoother,” says Emeka Chukwu, who oversees a transport workers’ cooperative in Enugu. “It gives us peace of mind. No more excuses.”
Speaking on the trend, Ope Adeoye, CEO of OnePipe, said this trend portends a deeper systemic issue.
“When treasurers spend more time chasing payments than managing funds, the model begins to collapse. It’s encouraging to see more cooperatives adopting direct debit tools like PaywithAccount. The increase in uptake reflects a real need, people want structure they can trust, especially in these tough economic times.”
Industry experts believe such solutions could help stabilize grassroots finance.
“When dues are predictable, planning becomes possible,” says Temi Adedeji, a digital finance consultant. “It means more loans issued, better savings discipline, and less stress for treasurers.”
As Nigeria’s cooperatives approach their mid-year audits and dividend planning cycles, the need for more resilient, automated collection systems is becoming harder to ignore.
