About us
The National Cooperative Financing Agency of Nigeria (CFAN) is an independent agency for cooperatives initiated by the National Cooperative Development Policy for Nigeria (2002) as the financial hob of cooperative activities in Nigeria. The Agency was first created in 1978 as the National Cooperative Credit Union of Nigeria Limited (NACCUN) which was later rebranded on the 7th April, 2015 by the Federal Department of Cooperatives (the Regulatory Body by Law) as The National Cooperative Financing Agency of Nigeria (CFAN) in conformity with the recommendations of the National Cooperative Development Policy for Nigeria (2002) as one stop shop for cooperative financial needs. CFAN is the Apex Body for all financial cooperatives in Nigeria, she coordinates all credit leagues, credit unions and the 36 State Cooperative Financing Agencies and the FCT Abuja as well as assist them have access to finance to serve their teaming members. The Agency is affiliated to the African Confederation of Savings & Cooperative Credit Association (ACCOSCA) and as such, represents Nigeria on financial cooperative matters at regional, continental and global levels respectively. CFAN currently chairs the Product Working Group for Financial Inclusion and a Member of the Technical committee for Financial Inclusion at the Central Bank of Nigeria (CBN).
Our Vision
To be the foremost promoter of cooperative financial best practices while serving as the
financial services provider for all sectors of cooperative enterprise in Nigeria”.
Our Mission:
To provide appropriate mentorship, linkage and guarantee that will lead to greater access to
finance for sustainable growth and development of the cooperative enterprise in Nigeria”.
Services
Our affiliate members enjoy the following services from us:
- Financial Linkage
- Cooperative Development /Advisory Services
- Advocacy/Promotion of Best Practices
- Membership Education/capacity building
- Information Technology
- Access to Pension, Mortgage and Insurance.
Our Core Strength
Our Core Areas of Strengths include:
Membership:
Our membership spans over 30 million down the ladder to the grass root across Nigeria which we feel will help actualize the National Financial Inclusion Strategy to promote inclusive growth and development.
The Cooperative Law: our existence and activities is supported by the Cooperative Act 2004
CAP 98 LFN and the Cooperative Development Policy for Nigeria (2002).
Benefits
Our members stand to gain the following:
- Financial Inclusion
- Financial Literacy
- Grass root Mobilization
- Financial Linkage
- Capacity Building
- Access to affordable finance and corporate guarantee.
2.0 Number of Members
Over 5.2 million Credit Co-operative Members nationwide
2.1 Number of Co-operative Groups
Over 2,040 Co-operative groups nationwide
3.0 Geographical Location of Co-operative Societies/Members
The Co-operatives and members are Spread across the 774 Local Government in Nigeria ranging from the primary co-operative Societies at the ward level, Secondary Co-operatives at the Local Government Level, State Co-operative Financing Agency at the State Levels and the National Co-opeartive Financing Agency of Nigeria (CFAN) at the National Level coordination the overall credit co-operative activities in Nigeria.
4.0 Sectors covered and/or represented by members
Our activities covers financial inclusion (access to finance, Healthcare, micro pension, Micro Insurance, Information Technology, housing, renewable energy, Small and Medium Enterprise, Artisans, Women/Youth/Vulnerable Groups and Agriculture (The Cooperative Family Feeding Programme).
5.0 Pension
We are vigorously involved in pension drive for our members who cut across various cadres of pension and we are partnering with PENCOM is this direction. It will interest you to know that we made inputs into the current Micro Pension Scheme development.
6.0 Financing structure
The financing structure is both internal and external. The Co-operative finances her members and activities internally from funds generated from savings and shares from members as well as retained earnings and as such, the financing cost to members and the co-operative is very cheap. However, external financing always come at a high cost to the co-operative and the members except for development funds from Development Institutions which are difficult to access in most cases. However, the current Government Enterprise Empowerment Programme (GEEP) makes use of our members as Super Agents in collection, processing, disbursement and recovery of the loan facility thereby making financial inclusion easy. We are equally working on the National Co-operative Development Fund
7.0 Savings volume from members, share mobilization and other retained earnings
Ascertaining savings volume, shares and retained earning currently is difficult due to absence of software that should have done this more so, that the State base registration and regulation made it more difficult. However, with the advent of the cloud base technology, the Unified Co-operative Platform (UCP) provides the opportunity to ascertain overall management information required of the
Cooperatives. The UCP programme is currently being implemented as co-operatives are on daily basis populating their spread sheets and migrating to the UCP.
8.0 Types of savings (voluntary or compulsory?)
It is a mix of both voluntary and compulsory. Every co-operative member must make regular contributions to the co-operative to maintain his/her members and shareholder which makes it compulsory. However, the voluntary savings scheme is in the light of target savings such as children education, rent, Christmas savings, Sallah Savings, e.t.c.
9.0 Other sources of financing
These include external sources such as Development Bank, Development partners and Donor institutions.
10.0 Potential sources of financing
The CFAN at its 4th Summit held at Keffi, Nasarawa State in November 2019 resolved to setup the CFAN Cooperative Development Fund targeted at N5 billion annual aggregate contributions from over 5 million members of CFAN spread across the Country at a contribution of N1,000.00 per member per annum. The CFAN Cooperative Development Fund is expected to grow annually through the annual contributions of members and support from Government and Development Partners. The Fund will provide loan funds for CFAN to her members as well as provide guarantee to loans from external sources.
10.0 Insurance information for CFAN loans or plans in this regard
We have a standing committee on Insurance, we equally engaged an insurance brokerage company as consultant that appraise, qualify, advise and monitor the implementation of micro insurance by under writing insurance companies with co-operative societies. The National Insurance Commission (NAICOM) is working with CFAN to achieve literacy, advocacy and compliance to micro insurance by our members.
11.0 CFAN Partners
CFAN partners include but not limited to the following:
- Central Bank of Nigeria
- Federal Mortgage Bank of Nigeria
- CWG PLC
- IFC/World Bank
- ILO/FAO
- Sterling Bank Non-Interest Banking
- Family Homes Fund