As Nigeria navigates a period of economic transformation, we are presented with a unique opportunity to build a more robust, inclusive, and sustainable economy. While we often focus on top-down strategies like large-scale infrastructure projects and national policies, I believe we must also champion a powerful, bottom-up economic model that is already deeply rooted in our communities: the cooperative society. This is a proven engine for sustainable growth and a key to empowering citizens from the grassroots.
At its core, a cooperative is a business owned and democratically controlled by its members. Unlike a corporation, its primary goal is not to maximise profit for external shareholders but to serve the needs of its member-owners. This is a fundamental difference that shifts the entire economic paradigm. The seven internationally recognised cooperative principles—including voluntary membership, democratic member control, and a focus on community over profit—are not just ideals; they are the bedrock of a fairer and more equitable economic system. They foster trust, promote shared responsibility, and ensure that wealth generated is reinvested back into the community that created it. These values are essential for building the resilient and prosperous society we all seek to create.
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The cooperative model’s potential extends far beyond professional societies and offers practical solutions to some of our most pressing national challenges.
First, financial inclusion. Millions of Nigerians, particularly in rural and underserved areas, can be brought into the formal financial system through cooperatives. This is a goal that resonates with the economic vision of the Minister of Finance and Coordinating Minister of the Economy, Wale Edun. As he stated, “A trusted and stable financial system… is essential to lifting millions out of poverty and driving Nigeria’s transition to a $1 trillion economy.” By bringing underbanked and unbanked populations into a structured financial system, cooperatives help expand the tax base and formalise economic activities. Their ability to provide micro-loans for entrepreneurs and support small businesses aligns with the national strategy to drive economic expansion through private sector participation and innovation.
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Second, housing and urban development. With Nigeria’s population growing rapidly, the housing deficit is a critical issue. The Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, has been a strong advocate for leveraging cooperatives to solve this. He has specifically called on cooperative societies to organise and participate in the Renewed Hope Housing Programme, stating, “This is the time to mobilise your members, secure land, identify needs and approach [the Federal Mortgage Bank of Nigeria] or the Ministry for support.” He has further underscored the value of cooperatives by highlighting that the FMBN offers cooperative housing development loans with single-digit interest rates and ethical mortgage options. This official recognition from the highest levels of government reinforces the cooperative model not just as a tool for financial savings, but as a direct and viable pathway to solving a critical national challenge.
Third, entrepreneurship and job creation. Nigerian youth are brimming with entrepreneurial energy but often lack the capital to turn their ideas into reality. A cooperative of young artisans, tech developers, or small-scale traders can provide the initial capital, mentorship, and a ready-made market to help new businesses get off the ground, serving as an incubator for the next generation of Nigerian innovators.
While the theoretical benefits are clear, nothing proves the model’s success like a real-world example. For about two decades, I have been part of the cooperative movement through COOPLAG, the esteemed cooperative society of the staff of Shell in Nigeria. My experience has shown me firsthand that cooperatives are far more than just savings and credit clubs; they are vibrant communities of shared interests and mutual support. The success of COOPLAG, with its thousands of members and multi-billion Naira asset base, is a microcosm of what is possible on a national scale. We have helped thousands of staff acquire vehicles, purchase homes through our flexible mortgage plans, and finance their children’s education. The value of our cooperative lies not just in the millions of Naira in loans disbursed, but in the peace of mind and shared sense of ownership we have fostered, demonstrating that when individuals pool their resources and talents, they can achieve collective prosperity and build a safety net that is resilient to economic shifts.
COOPLAG is a powerful testament to the model’s success, and its story is mirrored by thriving cooperatives across the globe. A comparative analysis of how cooperatives have thrived in other parts of the world demonstrates their power as a stabilising and transformative force.
The European and American experience is rich with cooperative success. In the United States, credit unions (a type of financial cooperative) play a critical role in promoting financial inclusion. As not-for-profit entities owned by their members, they offer lower interest rates on loans and higher savings rates than traditional banks. During the Great Recession of 2008, studies showed that credit unions maintained a higher survival rate than many mainstream businesses and were less likely to lay off workers. Similarly, in Spain, the Mondragon Corporation is a world-renowned example of a worker cooperative federation that has grown into a major economic force with a global presence, successfully competing with multinational corporations while maintaining its democratic, worker-centric principles.
Housing cooperatives, as championed by the Minister of Housing, are a key part of the housing landscape in many European nations. In countries like Germany and Switzerland, cooperative housing provides a democratic alternative to traditional rentals or homeownership. Residents are members of a cooperative that owns the property, allowing them to benefit from long-term security, below-market rents, and direct involvement in community decision-making. These models show that by leveraging collective resources and specialized financing mechanisms, cooperatives can provide sustainable, high-quality, and affordable housing solutions on a large scale.
Across continents, a consistent theme emerges: cooperatives are counter-cyclical and resilient. They are often less volatile during economic downturns because their primary motivation is member welfare, not shareholder profit. This long-term, people-first approach has made them a cornerstone of economic stability in many regions. The lessons from these global experiences are not just inspiring; they provide a clear and actionable blueprint for Nigeria’s own path to inclusive growth.
To build on these opportunities, we must continue to refine and strengthen the cooperative ecosystem. Policymakers should provide a supportive regulatory framework that promotes transparency and accountability. The private sector can also contribute by partnering with cooperatives, providing them with technical expertise, training, and access to new technologies. The rise of FinTech offers a huge opportunity for cooperatives to modernize their operations, improve efficiency, and enhance financial security for their members.
The path to Nigeria’s economic prosperity is a collective journey. By reimagining development through the lens of cooperation and harnessing the power of democratic member-ownership, we can create an economy that is not only robust and dynamic, but also fair, inclusive, and truly owned by the people it serves. The future is collective, and with a supportive environment and an energized population, it is bright.
Francis Adeoye is the President of the COOPLAG Cooperative Investment and Thrift Society Ltd (A Cooperative society of Shell and Renaissance Africa Staff). He is a strong advocate for entrenching the cooperative society system into the fabrics of national development strategy.
