Osun’s Cooperative Revolution: How Governor Adeleke’s Reforms Are Reshaping the Grassroots Economy

In a recent radio interview, Hon. Prince Bayo Ogungbangbe, the Osun State Commissioner for Cooperatives and Empowerment, detailed the transformative impact of Governor Ademola Adeleke’s cooperative reforms. These initiatives are not merely administrative changes—they represent a fundamental shift in how grassroots economic development is being driven across the state. Below, we unpack the key achievements, the strategic thinking behind them, and what they mean for everyday Osun residents.

The Revival of Moribund Cooperatives: A Grassroots Economic Engine

One of the most striking achievements highlighted by Commissioner Ogungbangbe is the revival of over 30,000 cooperative societies across Osun State. Many of these cooperatives had been dormant for years, lacking the capital, leadership, or government support needed to function. Under the Adeleke administration, targeted interventions—including financial injections, capacity-building workshops, and streamlined registration processes—have brought them back to life.

Why this matters: Cooperatives are the backbone of rural economies. They allow small-scale farmers, artisans, and traders to pool resources, access credit, and negotiate better prices for inputs and outputs. A revived cooperative network means that a cocoa farmer in Ijesha North can now access low-interest loans to buy seedlings, or a group of women in Iwo can collectively purchase sewing machines. This is not charity; it is sustainable economic empowerment.

Practical example: Consider the Igbegele Oluwa Afi-Olohun Cooperative Society in Ile-Ife. Its leadership publicly stated that their support for the administration is based on performance, not politics. This cooperative, once struggling, now has access to revolving loans that have enabled members to expand their businesses—from poultry farming to retail trade.

The ₦3.45 Billion Intervention Fund: From Promise to Reality

A landmark moment was the first-ever Cooperative Summit in Osun State, where Governor Adeleke announced a ₦1 billion revolving loan for cooperatives under the Federation of Osun State Cooperative Ltd (FOSCOOP). Recognizing the scale of need, the administration later increased this fund to ₦3.45 billion—a 245% increase that signals a serious commitment to grassroots finance.

To date, over ₦1.6 billion has already been disbursed. This money flows through two main channels:

• FOSCOOP: The central cooperative body that aggregates loans for larger unions.
• Ward-based cooperatives: A decentralized network of 402 societies that ensures funds reach even the most remote communities.

Deeper context: The ward-based model is particularly innovative. By creating cooperatives at the political ward level—the smallest administrative unit—the government ensures that no community is left behind. A farmer in a rural ward of Obokun can apply for a loan without traveling to the state capital. This reduces barriers to access and builds trust in the system.

Financial Inclusion Through Ward-Based Cooperatives

The expansion to 402 ward-based cooperative societies is a deliberate strategy to deepen financial inclusion. In many parts of Nigeria, rural residents are excluded from formal banking due to distance, lack of collateral, or low literacy. Cooperatives bridge this gap by offering:

• Group lending (where social capital replaces collateral).
• Savings mobilization (members contribute small amounts regularly).
• Business training (often in local languages).

Example in action: A vulcanizer in Ilesa, trained through a partnership with the Vulcanizers Association of Nigeria and the Federal Road Safety Corps, can now access a loan to buy better equipment. This not only improves his income but also enhances road safety—a win-win for the community.

Empowerment Beyond Loans: Partnerships That Build Skills

The Adeleke administration has not stopped at financial interventions. Commissioner Ogungbangbe highlighted partnerships with organizations like Project Enabled Africa, which focuses on persons with disabilities (PWDs). Through this collaboration, PWDs have received:

• Startup grants to launch small businesses.
• Specialized equipment (e.g., sewing machines adapted for wheelchair users).
• Vocational training in areas like tailoring, phone repair, and catering.

Similarly, the partnership with the Vulcanizers Association of Nigeria and the Federal Road Safety Corps has trained hundreds of artisans in modern techniques and safety standards. This is a model of how government can leverage existing professional networks for mass impact.

Addressing Allegations of Political Bias

Critics have alleged that loan distribution favors supporters of the ruling party. Commissioner Ogungbangbe dismissed these claims, emphasizing that cooperative societies are non-partisan by law and practice. He cited the Igbegele Oluwa Afi-Olohun Cooperative Society in Ile-Ife, whose leadership publicly stated that their endorsement of the administration was based on performance, not politics.

Why this is credible: Cooperatives are member-owned and member-led. If loans were politically biased, members would revolt and the societies would collapse. The fact that 30,000 cooperatives are thriving suggests that the system is working on merit.

Infrastructure as a Complement to Cooperative Growth

Commissioner Ogungbangbe also noted that cooperative reforms are part of a broader development agenda. Road projects in Ilesa, Osogbo, Iwo, Ile-Ife, and Ila Orangun are improving access to markets. A cooperative farmer in Ijesha North can now transport produce to urban centers faster and at lower cost, thanks to new roads. This synergy between infrastructure and cooperative finance is critical for sustainable economic growth.

National Politics and Regional Responsibility

On the national stage, the Commissioner addressed questions about party alignment. He stated that despite differences in party affiliation, there is a regional responsibility to support President Bola Ahmed Tinubu for a second term, given his Southwest roots. This reflects a pragmatic approach: while state and federal governments may belong to different parties, cooperation on issues like infrastructure and cooperative development benefits everyone.

Looking Ahead: The Call for Continuity

Commissioner Ogungbangbe concluded by urging Osun residents to support Governor Adeleke’s re-election on August 15, 2026. He argued that continuity is essential to sustain the cooperative revolution. With ₦1.6 billion already disbursed and 30,000 cooperatives revived, the foundation is laid—but the work is far from over.

Final thought: The Adeleke cooperative reforms offer a replicable model for other states. By combining financial intervention with institutional innovation (ward-based societies) and skill-building partnerships, Osun is demonstrating that grassroots economic transformation is possible—even with limited resources. The key is political will, transparent systems, and a focus on measurable outcomes.

Related

All credit goes to the original article. For more information, read the Source link.