A growing number of cooperatives in Nigeria are embracing automated payment systems to streamline savings and loan repayments, enhancing financial inclusion and stability for millions of their members.
The Chief Plumber, OnePipe, Mr Ope Adeoye made this known on Saturday day to newsmen in Lagos.
Adeoye said that by leveraging technology to streamline payments, cooperatives could stabilise communities, fuel micro-enterprises, and help millions move from survival to stability.
He said that Ire Ayo Traders Cooperative, a 15-year-old savings group in Ibadan’s Bodija market, recently adopted a direct debit system.
According to him, the direct debit system allows members to approve one-time mandates for monthly contributions.
“The move has increased collection rates by 30 per cent, reduced defaults and freed up administrators to focus on financial literacy and other value-added services,” he said.
Adeoye said that leveraging technology had increased trust in the system and also given dignity and peace of mind to users eliminating the need for awkward follow ups and reminders.
He said that the cooperative used PaywithAccount, a direct debit solution developed by Nigerian fintech company OnePipe, to securely pull payments from members’ bank accounts with consent.
According to the Cooperative’s Administrator Titilayo Adebayo, the system has unlocked new possibilities, including financial literacy sessions and group insurance.
Adebayo noted that this development came as cooperatives in Nigeria continued to play a vital role in promoting financial inclusion.
She said that nearly 46 per cent of adult Nigerians relied on informal financial groups, according to a 2023 study by Enhancing Financial Innovation & Access (EFInA).
“We are not trying to be a tech company but just want to help people save better, borrow responsibly, and build something together.”
According to her, cooperatives are the frontline institutions of Nigeria’s financial resilience, especially for people underserved or unserved.
She said that this was also true for the Nigeria where small businesses accounted for over 80 per cent of employment, and where trust in digital finance was still growing.
Adebayo said that making it easier for people to save and contribute consistently could have ripple effects.
The cooperative administrator added that it could stabilise communities, fuel micro-enterprises, reduce reliance on predatory lending, and help millions move from survival to stability.
“When our people save better, they live better and when they live better, the economy can breathe,” she said.
NAN
