The study focused on the role of financing in the performance of cooperative society in Damaturu. The work adopted descriptive research design in order to generalize the findings to a larger population. Primary and secondary data and questionnaire were used to source data. Simple random sampling technique was used to select a subset of participants from a population. The selection focused on the cooperatives and businesses that are connected to the cooperatives, which totalled ten, and the organization got ten each. The researcher used population of 100 respondents. Hypothesis 1 was tested using chi-square statistics, and Pearson Product Moment Correlation Coefficient Analysis with SPSS software was used to test hypothesis 2. From the results of the analysis using chi-square, the significant value of 0.026 and chi-square value of 196.87, the null hypothesis is rejected and the alternate is accepted. From the results of the analysis, the challenges faced in financing significantly relate with the productivity of cooperative societies with the correlation coefficient of 0.876 and the significant value of 0.041, which shows that the relationship is significant. The study revealed that the government’s involvement encourages SMEs as they support cooperative organizations, by creating enabling atmospheres for financial delivery. It is therefore recommended that government should strengthen cooperative society to enhance more productivity of the institution.