By Amaka Abayomi

The usefulness of cooperative societies in Nigeria can not be over-emphasised as such societies have led to not only the socio-economic development of their members, but have been instrumental in employment generation for millions of dependants.

From the Agege Planters’ Union (APU) in 1907, Lagos State has 16,000 registered cooperative societies that not only boost the economy of the state but are succeeding in creating enormous employment opportunities for over one million families who are involved in various economic enterprises such as farming, fishing, processing, trading, transportation, artisan-related activities and services, among others.

Determined to further bridge the widening gap between artisans and access to finance, the Lagos State government, through the Lagos State Microfinance Institution (LASMI), has established a micro-credit fund for members of Lagos State Co-operative Federation (LASCOFED), ) the umbrella body of cooperative societies in Lagos State.

Explaining why the fund can only be accessed by members of cooperative societies, the Executive Chairman of LASMI, Bashorun Sikiru Alabi-Macfoy, said it was to ensure that the money gets to the right people that need it to boost their businesses.

He pointed out that artisans stand better chances of benefiting from the fund by forming cooperatives because it would give them added advantage in terms of monitoring repayment by members.

“Results of our impact assessment revealed that all efforts by the state government in alleviating poverty by disbursing soft loans through microfinance banks (MFBs) proved futile due to the activities of MFBs who prefer to act like deposit money banks and focus on big timers as customers.

“Since the state government is willing to enable them grow their trades, this fund was established and it would be accessed through our partner MFBs at the approval of applications by LASCOFED.”

Macfoy added that though business sustainability is important, but warned would-be beneficiaries that their businesses must be located in Lagos, not located in marked areas for beautification or by roadside for them to benefit from the scheme.

Pointing out that access to the fund by artisans, especially farmers would build the needed capacity of community based societies to ensure continued economic sustainability, the Commissioner for Agriculture and Cooperatives, Mr. Gbolahan Lawal, said the fund would increase food production and security and grow the economic activities of beneficiaries.

Represented by Director of Cooperatives, Mrs. Ayo Awokulehin, the Commissioner blamed the drop in food production to lack of access to fund by farmers.

“Access to agricultural credit by farmers at the right time will develop the sector and increase food production. This fund is coming at a time that it is most needed as most banks are not willing to commit funds to the agric sector.

“With over 18 million people in Lagos State, we need improved technology to ensure food security and also attract young farmers”

Notable programmes of the Lagos State government that have been successfully executed through cooperative societies are the Agriculture-based Youth Empowerment Project (AGRIC-YES), the Rice for Job Programme, the Farm Estate Initiatives and the School Agricultural Programme.