By Cynthia Alo

Despite the Federal Government’s promise of affordable financing and financial inclusion through the proposed Cooperative Bank of Nigeria, many farmers, agribusiness operators and artisans have expressed skepticism over the initiative, insisting that transparency, low-interest loans and grassroots implementation will determine its success.

The Minister of State for Agriculture and Food Security, Senator Aliyu Sabi Abdullahi, had during the South-West Zonal Engagement on Cooperative Bank Share Capital Mobilisation and Cooperative Sector Digitalisation Drive in Lagos, said the proposed bank would provide “accessible and affordable financial services to cooperators, farmers, artisans, traders, SMEs, youth and women.”

He explained that the bank would operate with “65 per cent controlling equity for cooperatives, 30 per cent for private investors and five per cent for employees.”

However, stakeholders who spoke to Vanguard said previous intervention programmes had created doubts among rural farmers.

Acting National President of the Small Scale Women Farmers Organisation in Nigeria, SWOFON, Mrs. Ojo Florence, said: “For years, hardworking women farmers have laboured without adequate capital while conventional banks remain difficult because of high interest rates and strict conditions.

“When you empower a woman, you empower the whole community and the nation. Agriculture remains the backbone of food security and national development.”

She, however, warned: “Let it reach the grassroots farmers. Let the implementation be people-focused and not another programme where the money is diverted into something else.”

Also, a Northern based smallholder farmer, Fatima Gumi, said many farmers remained unconvinced.

“It’s unfortunate to say that so many similar programmes were created to no avail, but political will and leaders’ commitment could make a difference,” she said.

“Any loan with interest to farmers only compounds the problem of smallholder farmers. Timely support of relevant, adequate and subsidised farm inputs should be given priority.”

Also speaking, Group Managing Director of Xtralarge Farms & Resorts, Dr. Moji Davids, said: “The idea is to build a bank that actually works for farmers, traders, artisans and cooperative groups, understanding their realities.

“Conventional banks often do not understand the nature of farming and rural businesses.”

She added: “Agriculture does not need just cash. Farmers need affordable inputs, mechanisation support, storage, insurance, processing opportunities and stable off-takers.

“Giving loans without solving market access is dangerous. A farmer who produces crops without buyers simply becomes poorer after harvest.”

Davids also warned against excessive digitalisation.

“If this system becomes too tech-driven or too centralised, it could shut out the very people it was designed to help,” she said.

Similarly, Vice President of Lagos State Barbers, Hairdressers and Cosmetologists Association, LABHCA, Mrs. Patricia Oluigbo, described the initiative as “a welcome development,” but cautioned: “We hope this will not end up favouring only big investors and politically connected people.

“Artisans and grassroots cooperative members should also benefit because they are part of the economy the government says it wants to support.”