EFFECT OF COOPERATIVE SOCIETIES IN FOSTERING FINANCIAL INCLUSION IN RURAL AREAS OF OTUKPO LOCAL GOVERNMENT AREA OF BENUE STATE

This study investigates the role of cooperative societies in promoting financial inclusion within the rural areas of Otukpo Local Government Area, Benue State. Financial inclusion, a critical component of economic development, is often hindered by the lack of access to formal financial services in rural regions. Cooperative societies, as community-based financial institutions, are uniquely positioned to bridge this gap by offering accessible, affordable, and tailored financial services. The research employs a mixed-methods approach, combining quantitative data from surveys of cooperative members and qualitative insights from interviews with stakeholders. Findings reveal that cooperative societies significantly contribute to financial inclusion by providing microloans, savings accounts, insurance products, and other financial services that empower individuals and small-scale entrepreneurs. However, challenges such as limited capital, inadequate training, and regulatory barriers hinder their full potential. The study underscores the importance of strengthening cooperative frameworks through policy support, capacity building, and community engagement to enhance their effectiveness in fostering financial inclusion. The results provide valuable insights for policymakers, financial institutions, and community leaders seeking to improve financial access and economic resilience in rural areas.