This paper investigated the nature of loan regimes in cooperative societies in Nigeria with a view to improving cooperative system for sustainable development. The paper specifically examined barriers to sustainable loan regimes by looking at the related challenges and opportunities of cooperative societies‟ access to an utilisation of financial services in Nigeria in general and in Osun State of Nigeria in particular. Studies have affirmed that re-structuring for sustainable development is a process involving three essential elements, that is, feasible industrial growth to fulfill basic socio-economic needs; ensuring maximum development of human resources; and achieving greater social justice through more equitable income distribution. Unfortunately, none of these is satisfactorily manifesting in African nations. In Nigeria, unemployment rate is increasing among the youth, young graduates and the poor people. Globally, cooperative societies have become well appreciated as a strong vehicle for promoting economic empowerment particularly among the youth and other vulnerable and marginalised groups. Primary data were obtained through in-depth interviews, focus group discussions and semistructured questionnaire directed at all the 2,972 cooperative societies in the state of Osun, Nigeria. Secondary data were obtained from books, journals and internet. Research findings showed that although cooperative societies have been instrumental to economic empowerment in the rural areas of the State of Osun, and in promoting local entrepreneurship across the West African countries, especially between Nigeria and Ivory Coast, nevertheless, loan regimes could still be further improved to make cooperative system more efficient in the quest for rapid sustainable economic development. The paper averred that cooperative societies, if well harnessed, could be used to make local entrepreneurs have access to finance.