The Federal Government has outlined a new plan to overhaul Nigeria’s cooperative sector, with proposals to establish a dedicated Cooperative Bank and roll out a nationwide digital registry for cooperative societies.
Aliyu Abdullahi, minister of State for Agriculture and Food Security, announced the initiative on Thursday, March 26, 2026, at the 8th National Council on Cooperative Affairs (NCCA) meeting in Abuja.
The reform package, tagged the Renewed Hope Cooperative Reform and Revamp Programme (RH-CRRP), is aimed at moving millions of Nigerians in cooperative societies from informal, paper-based systems into a structured, technology-driven financial network.
Abdullahi said the government is developing a Cooperative Verification Number (CVN) alongside a smart digital registry to improve transparency, data management and accountability across the sector.
“The time has come to embrace technology, enforce accountability, strengthen governance, support innovation, and empower our cooperative societies to thrive,” he said.
CVN to Drive Transparency in Cooperative System
A big part of the reform is the introduction of the Cooperative Verification Number (CVN), a system similar to the banking sector’s Bank Verification Number (BVN).
The CVN is expected to create a unified digital database capturing cooperative societies and their members nationwide.
Officials say this will help eliminate fraudulent or inactive groups, while enabling the government to better identify and support genuine farmers and small business owners.
It is also expected to strengthen accountability, as cooperative executives will be required to operate within a more transparent, trackable system.
Roadmap for a Dedicated Cooperative Bank
As part of the reform, the government has drawn up a roadmap for the establishment of a Cooperative Bank to address long-standing funding challenges faced by cooperative societies.
For years, many cooperatives have found it difficult to access credit from commercial banks due to strict requirements and high interest rates.
The proposed bank is expected to focus on cooperative members, offering more flexible and affordable financing options.
Abdullahi said the plan also includes reviving the National Centre for Cooperative Development (NACCODEV) to provide training in modern business practices, governance and financial management.
“If Nigeria must feed itself, empower its citizens, reduce poverty, and expand prosperity, then revamping and modernising the cooperative sector is not optional, it is urgent and non-negotiable,” he said.
He added that the programme would drive the establishment of the Cooperative Bank of Nigeria and expand access to funding for cooperative-based enterprises across the country.
Seven Pillars to Drive Reform
The RH-CRRP is structured around seven key pillars designed to strengthen and modernise the sector:
- Regulatory Reform: Reviewing the Nigerian Cooperative Societies Act to meet 21st-century needs.
- Digitalization: Moving all records from paper to the cloud.
- Access to Credit: Linking the new bank to rural food producers.
- Institutional Strengthening: Standardizing how cooperatives are run nationwide.
- Enterprise Development: Helping cooperatives grow into large-scale businesses.
- Stakeholder Partnerships: Working with international agencies and private firms.
- Monitoring Frameworks: Ensuring the 2026–2027 action plan is strictly followed.
The government says the initiative is essential to improving food security and driving rural development.
Cooperative societies are important in Nigeria’s informal economy, particularly among smallholder farmers and small businesses, but have been limited by weak structures and low digital adoption.
With the introduction of a national digital registry and standardised accounting systems, officials believe cooperatives will be better positioned to operate as formal economic entities.
For millions of Nigerians who rely on traditional contribution systems such as ajo and esusu, the reforms could mean improved access to government support, safer savings structures and easier access to affordable loans.
If fully implemented, the RH-CRRP is expected to strengthen the cooperative sector and position it as a driver of job creation and food production across Nigeria’s 774 local government areas.
