Ekiti to Begin N1bn Cooperative Loan Disbursement After MoU Signing

The Ekiti State Government says disbursement of its N1 billion cooperative loan scheme will commence after participating cooperative societies complete the required documentation and sign a Memorandum of Understanding (MoU).

The Commissioner for Trade, Industry, Investment and Cooperatives, Mrs Omotayo Adeola, made this known during a meeting with cooperative stakeholders in Ado-Ekiti.

Adeola said the loan scheme, approved by Gov. Biodun Oyebanji in July 2025, was designed to strengthen cooperative societies and improve the economic well-being of their members.

She explained that the delay in the disbursement was caused by disagreements among cooperative bodies over some modalities for accessing the facility, as well as misconceptions created by misinformation about the programme.

According to her, the implementation process also required compliance with government procedures, including deliberations, approvals, budgeting and financial authorisation before funds could be released.

The commissioner urged stakeholders to comply strictly with the approved guidelines, stressing that the signing of an MoU remained mandatory for all participating cooperative societies.

She disclosed that cooperatives had been grouped into three categories for effective implementation.

According to her, the first category comprises FESCOOP, Triple C and the Coalition; the second includes ASSUS, Departmental Unions, NULGE and LGEA/Teachers' Cooperatives, while the third covers independent cooperative societies within communities.

Adeola emphasised that the intervention was a loan and not a grant, adding that beneficiaries must utilise the funds for productive purposes capable of strengthening their societies.

She also stressed the importance of proper documentation, including Certificates of Occupancy where applicable, and noted that collateral would be compulsory for beneficiaries.

The commissioner explained that independent cooperative societies would access the facility through Omiye Microfinance Bank because they were not linked to government payroll systems or registered unions.

On the repayment structure, Adeola said beneficiaries would enjoy a three-month moratorium on principal repayment after disbursement before repayment begins.

She added that the MoU arrangement would involve the government, the bank and participating cooperative organisations, with Omiye Microfinance Bank responsible for monitoring repayments and providing periodic reports.

The commissioner urged stakeholders to submit feedback on templates already distributed to facilitate prompt disbursement and announced that a harmonisation schedule would soon be released.

She directed that the signing of the MoU be concluded on or before June 20, 2026, at the Governor's Office.

Earlier, the Permanent Secretary in the ministry, Pharm. Bunmi Ejimokun, advised cooperative leaders to submit the names of members willing and qualified to access the loan facility.

Responding on behalf of stakeholders, Chief John Enaebe, Chairman of the Cooperative Stakeholders, commended the state government for the initiative and pledged the support of cooperative societies for its successful implementation.

Also speaking, Mr Ojo Ezekiel of Ifesowapo CMU, Ikere-Ekiti, expressed the readiness of coalition members to provide the required collateral.

A representative of the Departmental Unions, Mr C. Akinwumi, appealed to the government to revive the annual Cooperative Day celebration.

Adeola, in response, promised to consider the request in the ministry's 2027 budget proposal.

In his comments, the Director of Cooperative Services, Mr Olufemi Obisesan, described the intervention as unprecedented in the history of cooperative movements in the state.

Stakeholders at the meeting assured the government of their readiness to comply with all conditions required for the successful disbursement of the loan scheme.