The Lagos State Government has reaffirmed its commitment to strengthening cooperative societies by ensuring that management trustees adopt strong corporate governance practices.
Commissioner for Commerce, Cooperatives, Trade, and Investment, Folashade Ambrose, made this known during a town hall meeting with cooperative trustees in the Ikeja Division on Thursday.
The meeting, held at the Lagos State Cooperative Federation (LASCOFED) Multipurpose Hall, is part of a series of engagements scheduled across the state’s five administrative divisions.
Ambrose emphasised that Governor Babajide Sanwo-Olu’s administration views cooperative societies as key stakeholders in the state’s economic transformation, aligning with the fourth pillar of the T.H.E.M.E.S Plus Development Agenda—Making Lagos a 21st-Century Economy.
“The cooperative movement plays a crucial role in driving poverty alleviation, job creation, economic growth, and community empowerment,” she stated.
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“With strong and well-structured cooperatives, we can stimulate investments, harness local talents, and build a more inclusive and sustainable economy from the grassroots up.”
The Commissioner highlighted challenges affecting cooperative societies, including governance and leadership concerns, financial transparency, loan accessibility, and unstructured investments.
She noted that the government is working on redefining regulations, improving monitoring, and enforcing policies to strengthen the cooperative sector.
“Our goal is to position cooperatives to benefit from the A2F MSME Fund, facilitated through the LASG-BOI-Sterling Bank collaboration.
“This initiative will provide single-digit interest loans to cooperative-based MSMEs, supporting business expansion, infrastructure improvements, and market access while fostering industrial clusters and economic zones,” she added.
Ambrose called on trustees to adopt global best practices in governance, integrate cooperatives into larger economic value chains, and ensure transparency in loan disbursements.
She stressed that these measures would enhance public confidence in cooperative societies as reliable financial institutions.
Permanent Secretary of MCCTI, Olugbemiga Aina, urged cooperative members to take an active interest in the management of their societies rather than focusing solely on loan access and dividend collection.
“Members must ensure their trustees adhere strictly to cooperative by-laws. Trustees, in turn, should resist pressures to approve loans for unqualified members,” he advised.
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Head of Investigation at the Securities and Exchange Commission (SEC), Sa’ad Abdusalam, warned against cooperative societies engaging in unauthorized financial operations.
He cautioned that some organizations, falsely registered as cooperatives, illegally venture into money and capital market activities.
“Cooperatives are legally empowered to source funds and serve their members. They must not raise funds from the public without proper registration or invest members’ contributions in Ponzi schemes or unrealistic investment ventures,” he warned.
Special Fraud Unit representative, SP Eyitayo Johnson, underscored the importance of financial literacy, routine audits, technology adoption, and professional consultancy in preventing fraud.
He also encouraged whistle-blowing to expose fraudulent activities within cooperative societies.
Similarly, Abisola Oladipupo, Assistant General Manager of LASACO Assurance, stressed the need for cooperatives to insure member loans to protect against financial losses.
