By Onyeje Nancy Abutu
Benue Commissioner for Cooperatives and Rural Development, Dr Yanmar Ortese, says the establishment of the Cooperative Development Fund by the Cooperative Financing Agency of Nigeria (CFAN) will provide easy access to scalable and affordable loans, boosting grassroots development.
Ortese stated this on Wednesday in Makurdi during the ninth CFAN summit, themed: “Cooperative Development Fund: A one-stop shop for cooperative financing in Nigeria.”
Represented by the Ministry’s Permanent Secretary, Mr Jonathan Asen, the commissioner said cooperatives have long been the unsung heroes of grassroots development.
He explained that the cooperative movement empowers millions of Nigerians by promoting financial inclusion, encouraging a saving culture, and creating shared wealth.
“However, its potential has often been limited by lack of access to appropriate, scalable, and affordable finance.
“From the smallest thrift and credit societies to large-scale agricultural and housing cooperatives, our movement empowers millions of Nigerians.
“Cooperatives foster financial inclusion, encourage a saving culture, and create shared wealth, but access to appropriate finance remains a persistent challenge,” Ortese said.
He expressed optimism that the CFAN initiative is a timely and monumental step towards removing this financial bottleneck.
The commissioner said pooling resources from member contributions, government support, and development partners would allow the fund to provide larger, long-term credit, while promoting financial best practices and prudential standards.
He added that the fund would enhance financial inclusion, digitisation, capacity building, financial literacy, and provide specialised funding windows.
Ortese emphasised that the fund’s effectiveness must rely on mandatory, tiered contributions from all affiliated financial cooperatives, underscoring the principle of cooperative self-help.
CFAN President, Mr Muhammed Zakaria, said the summit aimed to onboard more cooperative societies into the CFAN programme to address pervasive poverty in the country.
Zakaria explained that various cooperatives would pool resources to fund members and create enterprise activities, adding that the fund has already commenced operations.
“The fund will be the backbone for support to members across the country,” he said.
The Executive Secretary of CFAN, Mr Emmanuel Atama, said members would not need collateral to access the fund, which would carry a single-digit interest rate.
Speaking to the News Agency of Nigeria (NAN), a participant, Mr Andrew Iyaji, welcomed the initiative, saying it would allow him to obtain loans easily after previously being denied by commercial banks due to stringent conditions.
NAN reports that participants at the summit came from all 36 states of the federation, including the FCT.
Edited by Peter Amine
