Business
Agency Tasks Govt On Cooperative Regulations
The Cooperative Financing Agency of Nigeria ((CFAN) has urged the federal and state governments to strengthen regulatory functions in cooperatives to ensure growth and transparency of cooperative business in the country.
The Executive Secretary of CFAN, Mr Emmanuel Atama, made the call in an interview with newsmen in Abuja yesterday.
Atama said that aside the issue of access to funds and ease of doing business, weak regulation was one of the major challenges of cooperative business in Nigeria.
According to him, because of weak regulations, many individuals just wake up and establish cooperative societies in their environs with the intention to loot funds of unsuspecting members.
He said,” these cooperatives do not hold Annual General Meetings, they don’t render accounts to their members, all they do is to eat the monies from members.
“The bottom line is that the regulation is weak, by the law and by the constitution, cooperative is on the concurrent list of the legislature.
“And it beholds state government and the FCT Administration through the office of the Chief Registrar of Cooperative to provide regulation for the cooperatives.
“And at the federal level, it is domiciled in the Federal Department of Cooperative, Ministry of Agric, but we discovered that both at federal and state levels, there is failure of regulation,’’ Atama said.
The executive secretary also urged the government to set up a National Cooperative Commission of Nigeria to help resolve the issue of weak regulation in the subsector.
He said if there was a specific body set up for the regulation of cooperatives in the country, such a body would beam more light in cooperative business and achieve greater results.
On the issue of cooperatives that do not want to register with the national body, Atama said many of such cooperative societies did not have the interest of members at heart.
According to him, many of such cooperatives are in business only to source for intervention funds from the government and other bodies to enrich their pockets.
“If you look at the Cooperative Act, it requires that once you set up a cooperative, the cooperative should be able to give loans to their members first of all.
“But you will discover that most of the cooperatives you see around are just doing what they feel like and most times when they come to you, they just want to know what they can benefit.
“Also, the CBN focus is not on those who are on established organisations because they believe that those cooperatives in establishments are already earning a living through the work they are doing.
“Whatever funds CBN is bringing out is to see how they can support those who are struggling to make a living, those SMEs and some of these cooperatives don’t understand that.’’
He said the National Assembly was working at amending the Cooperative Act, to ensure punishment, fee and fines for misconduct or wrong-doing in cooperative businesses.
Atama reiterated the gains of being a member of the national cooperative body among which was mentorship, linkage to intervention funds, guarantee and training/capacity building.
The Tide source recalls that CFAN recently entered a partnership with Smarter Grid International to ensure inclusive growth and development of its members across the country.
The partnership was to ensure that members were provided with steady power supply to enable them to do their businesses and train members on installation of renewable energy.
Smarter Grid is a renewable energy company that deals precisely on solar home system and business systems.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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