Osun unveils Cooperative Movement Reform Plan with N1b as Revolving Loan Scheme

VOICE AIR MEDIA, News Update

Governor Ademola Adeleke has received encomiums from cooperative society movement in Osun state for hosting the first statewide summit and approving One Billion Naira as a revolving loan scheme for the Cooperative movement.

In an event members of the cooperative movement described as the first of its kind since the creation of Osun state, Executive Secretary of the Federation of Osun Cooperative Union, Wasiu Bello said the previous administration diverted cooperative savings, leaving the societies in crisis and financial challenges.

Expressing deep appreciation that Governor Adeleke is repaying the diverted savings, the leader of the cooperators applauded the creation of the Ministry of Cooperatives and Empowerment, calling it the first of its kind in Nigeria.

Declaring the State Cooperative Summit opened, the Governor who was conferred with an award announced far reaching reforms including the allocation of One Billion Naira revolving loan scheme through the cooperative and micro-credit agency.

The Governor narrated his reform agenda further: “As we plan to inject huge fund, we must work on the following areas to inspire confidence and sustain continuous government financial contributions.

“The Cooperative law is due for review: After enactment dating back to first or second republic, an amendment of the act is necessary to take into account modern trends and practices;

“Upgrading the operational standard of the cooperative movement: We all must admit that the operational standard among the cooperative platform is very low and substandard. The old laws are hardly complied with and the practices across the societies are quite below any confidence inspiring rating;

“The need to review compliance with democratic governance: The cooperative society mostly lacks democratic governance. In other words, there is no regular election of leaders. This blocks innovation and frustrates the potentials of the grassroot financial platform;

“Crisis of Accountability and transparency: The greatest challenge is the low level of transparency and accountability in cooperative operations. The rot is deep, we must all admit. The external and internal auditors are mostly compromised and managers are mostly ill equipped. We must reform to achieve the potential of the movement”, the Governor noted.

Directing the Commissioner for Cooperative and Empowerment to submit a reform plan for execution, the Governor announced that his administration has resolved to invest a billion naira in the state cooperative movement to create a pool of revolving loans at single digit interest rate through the cooperatives and micro credit agency.

He informed the gathering that he has approved the complete rehabilitation of the Cooperative College, Odeomu, directing the Commissioner to take necessary action to implement the approval.

“Because of the importance of cooperative movement to the local economy, we may also consider the possibility of cooperative studies becoming a programme of study at polytechnics and universities in the state.

“The executive arm will also consider sponsoring an executive bill for the review of the cooperative law. Let us make the operating law conform with realities of the 21st century”, he noted while declaring the summit open.

The Cooperative summit which conferred the award of Grand Matron of the Cooperative Movement in Osun on Yeyeluwa Mrs Dupe Adeleke Sanni, was attended by top government officials including the Deputy Governor, Prince Kola Adewusi; Secretary to the State Government, Hon Teslim Igbalaye; Chief of Staff to the Governor, Hon Kazeem Akinleye; the host Commissioner, Bayo Ogungbangbe among others.