By Timothy Ejoh
IBADAN, Nigeria, Oct 15 (Reuters) – Cooperative society managers have been urged to encourage consistent savings and investments, develop attractive products and diversify portfolios to grow members’ capital and returns, while stakeholders warned executives against mismanagement and fraud.
The call was made at the ninth Annual General Meeting (AGM) of the Bodija (Ibadan) Unique Cooperative Investment and Credit Society for the 2026/2027 cooperative year, held at the International Conference Centre, University of Ibadan.
The new president of the society, Mr Olufemi Adesope, who assumed office at the meeting, described his responsibility as a call to duty and stressed the need to consolidate achievements and explore new growth opportunities.
“We must build on our successes, learn from our experiences and deliberately position Unique Cooperative Society for greater heights,” he said.
Speaking on the AGM theme, ‘Building Bridges, Empowering Members: Cooperatives in the Digital Age’, Adesope urged the society to reduce dependence on traditional activities by exploring viable businesses, property investments, community projects and other sustainable income-generating ventures.
He said the society must continually identify opportunities to create additional value for members and build partnerships with credible financial institutions, professional organisations, businesses, technology companies, other cooperatives and development institutions.
Adesope called for continuous training in financial literacy, investment, entrepreneurship, leadership and digital skills, and for accelerating digitalisation and automation of operations, including member registration, savings, loans, investment monitoring, communication and performance tracking.
“Technology should make our operations faster, more transparent, accessible and efficient,” he said.
He commended the Board of Trustees, including founding president Mr Olusegun Sanni and former president Mr Gbolahan Arogundade, for their guidance and support, and reaffirmed his administration’s commitment to transparency, prudent financial management, risk control and accountability.
“Our goal must not merely be to preserve what we have built, but to continuously grow, improve and create greater value for every member,” he said.
*Digital trust, legal consequences*
Keynote speaker Professor Sulaiman Adesina Yusuf, of the Department of Agricultural Economics, University of Ibadan, advised those seeking steady financial growth to join cooperative and credit societies and participate actively in their growth.
Yusuf urged cooperative leaders to embrace digital transformation to attract more members, but warned that technology cannot replace integrity.
“Let us be honest with each other: a digital notice is not the same thing as meaningful participation. An app cannot manufacture trust,” he said.
“What it can do, if we build it honestly, is make trust visible: a balance a member can check, a decision a member can read, a record a member can request. Technology can support accountability. It cannot take responsibility for it.”
Stakeholders at the meeting warned that mismanagement, diversion of members’ funds, falsification of accounts and fraud remain major threats to cooperative societies in Nigeria and attract severe sanctions under Nigerian law.
Under the Nigerian Cooperative Societies Act, Cap C35, Laws of the Federation 2004, as amended by the 2024 Amendment Bill, an officer or employee found to have made payments contrary to by-laws, caused deficiency by breach of trust, misappropriated or fraudulently retained money or property is liable to investigation by the Director/Registrar of Cooperatives. db21
Where criminal liability is established, the Registrar shall order repayment or restitution with interest or compensation and may refer the case to the police for investigation and prosecution. db21
Other offences under the Act include:
– Furnishing false information or wilfully making false statements in any application, return or report, which is punishable as forgery and on conviction attracts a fine of N100,000 or six months imprisonment or both.
– Disobeying summons, requisition or order issued by the Registrar under Sections 40, 41 and 42, liable on conviction to N100,000 fine or not less than six months imprisonment.
– Failure to comply with audit and reporting obligations under Section 47, liable to N100,000 fine or six months imprisonment. bac0
Beyond the Cooperative Act, executives of societies that receive government assistance are treated as public servants under the Corrupt Practices and Other Related Offences Act and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) Act. Corrupt practices, including bribery, breach of trust and criminal misappropriation, can lead to prosecution by ICPC and the Economic and Financial Crimes Commission (EFCC), with penalties of 3 to 7 years imprisonment plus fines.
Conviction also carries civil consequences, including disqualification from membership and from holding office in any cooperative society, dissolution and liquidation of the society, and personal liability to refund members’ funds.
The Niger State government had previously warned that it had uncovered cases where managers used cooperatives to defraud members and vowed to arrest and prosecute culprits.