Today marks the Annual General Meeting (AGM) of our cooperative, an event of great significance. It has been five years since this cooperative was established during the COVID-19 pandemic, a period that shaped its formation. Reflecting on its journey, it is clear that no establishment exists without challenges and triumphs. During the speech by the special guest of honour, I learned that this cooperative, known as Unique Cooperative, began with just ten members. However, one of the original members withdrew early on due to differences in vision with other stakeholders. Despite this setback, the cooperative grew steadily, starting with nine members and now boasting 150 members today.
The primary goal of the cooperative is to help its members achieve financial stability by providing loans with minimal interest and no collateral. This is a stark contrast to the rigorous and demanding processes of obtaining loans from banks. However, like any organization, the cooperative faces several challenges. One major issue is the repayment of loans. Some members, particularly new ones with limited financial reserves, fail to repay their loans. Additionally, some new members join the cooperative with ulterior motives, taking loans without any intention of repayment, especially in the current economic crisis.
Saving money has become increasingly difficult for both old and new members. Many members borrow money not for business purposes or to expand their ventures but simply to meet basic needs such as feeding. This trend has become a significant concern for the cooperative. The executives have therefore introduced stricter measures to address this problem. New members can no longer obtain loans without a valid reason, and they must provide a guarantor whose financial standing is equivalent to the amount requested.
During the presentation of the financial report for the year, it was revealed that the cooperative had disbursed a total of 39 million naira as loans. Out of this amount, 35 million naira remains uncollected, tied up with both new and existing members. This is an alarming figure, and I find it unreasonable for the cooperative to start a new financial year with such a substantial amount of money unaccounted for. It is crucial for the cooperative to address this issue to ensure its financial sustainability.
Despite these challenges, the cooperative has recorded some notable achievements. Last year, it successfully acquired land for its members, a significant milestone. Additionally, the cooperative sold shares, which yielded a 40% increase in value per share. This is undoubtedly good news for members and evidence to the cooperative’s potential for growth.
The meeting itself was not overly long. Members were updated on the dividends and profits from the shares they had purchased. These financial benefits highlight the cooperative's commitment to creating value for its members, even amidst the economic challenges.