LAGOS MOVES TO REPOSITION COOPERATIVE SOCIETIES THROUGH IMPROVED CORPORATE GOVERNANCE
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Lagos State Government has reiterated its commitment to strengthen the cooperative societies by ensuring the management trustees imbibe strong corporate governance in their administrations.
Commissioner for Commerce, Cooperatives, Trade and Investment, Folashade Ambrose made this known at the town hall meeting with the trustees in Ikeja Division held at multipurpose hall, Lagos State Cooperative Federation, LASCOFED, Ikeja on Thursday. The town hall meeting will hold across the five administrative divisions of the State.
According to the Commissioner, the meeting became imperative because Governor Babajide Sanwo-Olu’s administration considers cooperative societies as major stakeholders and their services are at the core of the administration’s focus of Making Lagos A 21st-Century Economy in line with the fourth pillar of the T.H.E.M.E.S Plus Development Agenda.
Her words: “The Cooperative Movement has a great role to play in achieving the vision to transform the economy using their large numbers to strongly drive poverty alleviation, job creation, economic growth, and community empowerment. With sturdy and virile cooperatives, we can stimulate investments, harness local talents, and develop a more inclusive and sustainable economy from the grassroots up.
“We must, therefore, harness these opportunities within a structured framework that ensures transparency, financial prudence and accountability in the management of the cooperative societies. If properly managed, our cooperative movement can become an economic catalyst, much like the models we have seen in leading cooperative economies.”
While enumerating critical challenges threatening the cooperatives to include governance and leadership issues, financial transparency and loan accessibility, and unstructured investments, the Commissioner expressed that the government is in the process of redefining the regulatory environment and enhancing monitoring and enforcement to strengthen the integrity of the cooperative sector.
“Our goal is to position the cooperative societies to partake in the A2F MSME Fund, being facilitated through LASG-BOI-Sterling Bank collaboration, and designed to revolutionise financing for cooperative-based MSMEs through single-digit interest loans for use to expand their businesses, working capital and infrastructure improvements; strengthen MSME market access; growth of cooperative-based industrial clusters and economic zones; and strengthening cooperative governance and institutional framework,” she said.
The Commissioner called for greater commitment on the part of the Trustees to reposition cooperative societies as drivers of Lagos’ economic growth by adopting global best practices in governance, leveraging available government support, integrating cooperatives into a larger economic value chain and ensuring transparency in loan disbursements and member contributions to boost public confidence in cooperative practice.
Permanent Secretary, MCCTI, Dr. Olugbemiga Aina, tasked members to develop greater interest in how cooperative societies are managed beyond seeking loans and collecting dividends. “Members must ensure trustees manage their societies according to Cooperative Bye-Laws, and management trustees must also avoid being put under pressure to approve loans for which members are not qualified.”
Head of Investigation, Security and Exchange Commission, Sa’ad Abdusalam, mentioned the incidents of organisations that are registered as cooperative societies dabbling into money and capital market operations they have no competence or capability to run, describing such acts as illegal.
“Cooperative societies are primarily empowered by law to source funds and service the requests of members; they are not to raise funds from the public without due registration and approval with the Commission and should not invest members’ funds in Ponzi schemes or investments that promise outrageous and unrealistic returns.”
Representative of the Commissioner of Police, Special Fraud Unit, SP Eyitayo Johnson, emphasised the need for regular auditing, financial literacy, adoption of technology like accounting software and engagement of professional consultants as ways to prevent fraud. He further encouraged trustees and members to engage in whistle-blowing to expose any potential or real fraud to safeguard cooperative societies.
Assistant General Manager, LASACO Assurance, Abisola Oladipupo harped on the need to insure loans given to members and prevent avoidable loss of their hard-earned savings.
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