Dele Oye, the National President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), has emphasized the importance of strengthening cooperative societies to enhance the capacity of Small and Medium Enterprises (SMEs) in Nigeria. Speaking at the 8th National Cooperative Summit Exhibition and Awards 2024, Oye highlighted the need for policies that would enable cooperative societies to unlock capital for SMEs, ultimately aiding in their growth and contribution to the economy.
One of the major challenges faced by SMEs in Nigeria is the difficulty in accessing affordable and sustainable capital. Traditional financial institutions often impose high-interest rates and stringent lending criteria, making it challenging for SMEs to secure the necessary funding to scale and thrive. This has hindered the growth potential of many SMEs in the country.
Oye referenced successful examples such as the Gateway Cooperative Multipurpose Society in Ogun State and the Lagos State Cooperative Federation, which have been instrumental in bridging the financing gap for SMEs. These cooperative societies have provided a platform for SMEs to access funding and support, enabling them to grow and expand their businesses.
To further support the growth of SMEs through cooperative societies, Oye recommended engaging with policymakers to establish a favorable regulatory environment. This includes advocating for tax incentives, legal protections, and streamlined registration processes for cooperatives. By creating a conducive environment for cooperative societies to operate, SMEs can benefit from increased access to funding and support.
In addition to policy advocacy, Oye suggested organizing training programs and workshops focused on financial management, business planning, and governance for cooperative members. These capacity-building initiatives can help strengthen the skills and knowledge of cooperative members, enabling them to better support SMEs in their growth journey.
Furthermore, Oye emphasized the importance of awareness campaigns to educate SMEs about the benefits of joining cooperative societies. By launching targeted campaigns to highlight the advantages of cooperative membership and how it can help SMEs access funding, more businesses can benefit from the support provided by these organizations.
Lastly, Oye called for stronger partnerships between states to create a more supportive environment for cooperatives and SMEs. Citing the Ogun-Lagos Joint Development Commission as a model for inter-state collaboration, he highlighted the potential for joint efforts to enhance the capacity of cooperative societies and support SME growth across different regions.
In conclusion, Dele Oye’s advocacy for strengthening cooperative societies to support SMEs in Nigeria is crucial for unlocking the growth potential of small businesses in the country. By implementing policies, training programs, awareness campaigns, and fostering partnerships, cooperative societies can play a significant role in providing the necessary support for SMEs to thrive and contribute to the economy.
