Evaluation of the Role of Cooperative Societies in Promoting Financial Inclusion in Rural Gombe State

Financial inclusion remains a major development challenge in rural northern Nigeria, where access to formal banking services is severely limited and cooperative societies have emerged as primary providers of savings and credit to underserved populations. This study evaluated the role of cooperative societies in promoting financial inclusion in rural communities in Gombe State, North East Nigeria. A descriptive survey was conducted in four rural LGAs: Shongom, Billiri, Nafada, and Kwami, with 160 cooperative members and 80 non-members recruited through multi-stage sampling. A structured questionnaire assessed access to savings services, credit availability, mobile financial services linkage, and financial behaviour change attributable to cooperative membership. Results showed that 78.8 percent of cooperative members reported using formal savings mechanisms for the first time through cooperative membership, compared to only 14.4 percent of non-members. Access to credit was rated as significantly better for cooperative members, with 67.5 percent accessing loans within the cooperative system versus 8.8 percent from formal banks. Female members benefited disproportionately from cooperative credit access. Linkage between cooperatives and mobile money platforms was limited to 23.1 percent of societies studied, representing a missed inclusion opportunity. The study concludes that cooperative societies are key drivers of rural financial inclusion in Gombe State and recommends formalising linkage agreements between cooperative federations and mobile money operators as a scalable inclusion strategy.

Keywords: financial inclusion, cooperative societies, rural communities, Gombe State, North East Nigeria