Types of Cooperative Society in Nigeria
In Nigeria there are many types of cooperative societies, we’ll be informed on the basic aim and know more about the cooperative companies. When was the cooperative society formed? All information would be shared in this article.
Using a jointly owned and democratically controlled business, a cooperative is “an autonomous association of citizens united voluntarily to achieve their common economic, social, and cultural needs and objectives.”
The first partnerships emerged in Africa at the start of the 20th century. It took place because the colonial government wanted to build relationships with the locals by working together. In Nigeria, the emergence of a cooperative society has been sluggish and challenging.
The following elements can be used to describe this.
- The first is that cooperatives could only conduct business in a manner that the colonial state deemed appropriate. There was no way the current order could be changed. Due to their flimsy material foundation, these cooperatives were short-lived.
- In the second, powerful landowners, tribal leaders, and local authorities anticipated the rise of cooperatives that included the underprivileged. They were aware that such cooperation would energize the coordinated peasant uprising against the exploiters. These elements clarify why. Having a registered cooperative society helps in building society.
The commoners were the target audience for the early initiatives aimed at establishing various forms of cooperative societies in Nigeria. For instance, the Agege Growers’ Cooperative (1907), the Union of Farmers, EGBA, and the Agrarian Cooperative Society in the city of Ibadan (1904). (1910). Without assistance from the government, these cooperative groups arose in the area of cocoa farming.
The sudden fall in the economy has now been blamed for the emergence of new cooperative forms. The goal was to help those who were less fortunate financially. so that they might afford to fulfill their fundamental wants and purchase necessities. It should be noted right away that Nigerians are unable to satisfy all of their needs. Since the vast majority of people reside at a lower income level than the growing population.
DEFINITION OF A COOPERATIVE SOCIETY
A cooperative is a for-profit firm that is controlled and run by the customers who purchase its goods and services. Cooperatives come in a variety of shapes and sizes, but all were created to serve the unique goals of their members. They are also designed to change to meet those needs. Let’s take a look at the major types of cooperative societies in Nigeria.
TYPES OF COOPERATIVE SOCIETY IN NIGERIA
In Nigeria, there are some key cooperative society types and they include:
CONSUMER COOPERATIVE SOCIETY
A consumer cooperative is a business that is owned and democratically run by consumers to meet their needs and ambitions. Such cooperatives function as a sort of mutual aid inside the market system, independently of the state, and are focused on providing services rather than financial gain.
CREDIT COOPERATIVE SOCIETY
Individuals who are business minded are known to pick up credit cooperatives to support the business, and the organization helps to support the business in place of rendering load to an interested business owner. Credit cooperatives partner with some commercial banks also with microfinance bank support with a low-interest rate. Aside from the load they render, members are open to training related to the area of service they want. Also, get recognition from bigger enterprises.
AGRICULTURAL/FARMING COOPERATIVE SOCIETY
The agricultural sector is the most productive in Nigeria and has had a strong cooperative society since its inception. They provide members with the basic equipment needed for large-scale farming known as commercial farming. The cooperatives provide members with machinery and necessary equipment for commercial farm consumption. Due to the low performance in production coupled with the traditional method of farming the national economy was too poor for public consumption.
Since agriculture is a means to grow the Nigerian economy, manpower is needed to drive the sector to a more stable place. Agriculture is the most abundant natural resource compared to crude oil. The advantage of a cooperative society is to oversee the affairs of Farmers in the sector.
HOUSING COOPERATIVE SOCIETY
What is cooperative housing all about and how do they secure the supposed property? This cooperative help in acquiring property for members who are not capable they help to secure the property then they pay to installmentally. More so, they engage in profitable investment. Most of the real estate Management is coin to Cooperative company.
FISHING COOPERATIVE SOCIETY
Fish farming is another form of agricultural Farming. The cooperative comes in to help the fish farmers get the necessary tools and equipment for a productive fish farm. They grant them low loan Grants and enlarge the market capacity of their livestock. The aim of the cooperative is to make business easy for the fish farmer.
MULTI-PURPOSE COOPERATIVE SOCIETY
A multi-purpose cooperative society is for general advantage, it creates awareness among individuals who would be interested to be part of the cooperative, and they help the business owner to establish the business, both small scale, and large scale. Companies also have a cooperative which assists staff with emergency needs, public servants, trade men and women, schools and every organization has a cooperative society to rely on.
Many Nigerians depend on cooperatives to survive, they tend to take the job more seriously and work effectively to make profits. Money obtained from a cooperative aid to sort out pressing needs. The multi-purpose cooperative is for the general public wanting to be part of the adventure.
PRODUCER COOPERATIVE SOCIETY
These are typically created to get rid of intermediaries and capitalist organizations from the industrial production process. For the needs of its members, this cooperative group produces things. According to the capital they have invested, the members receive dividends. The major goals of this cooperative society are to acquire raw materials at reasonable costs, manufacture goods and services effectively, do away with middlemen, and get rid of surplus by selling to outsiders for the highest possible price.
PROBLEMS OF COOPERATIVE SOCIETIES IN NIGERIA
Cooperative societies in Nigeria, like in any other country, may face a variety of challenges and problems. Below are ten potential issues that cooperative societies in Nigeria might encounter:
LACK OF AWARENESS AND UNDERSTANDING
Many people in Nigeria may not be familiar with the concept and benefits of cooperative societies, which can hinder the formation and success of these organizations.
POOR MANAGEMENT AND LEADERSHIP
Cooperative societies require effective leadership and management to function well. If these are lacking, the society may struggle to achieve its goals and meet the needs of its members.
LACK OF CAPITAL
Cooperative societies often rely on member contributions to fund their operations and activities. If members are unable to contribute sufficient capital, the society may struggle to finance its operations and achieve its objectives.
LIMITED ACCESS TO CREDIT
Cooperative societies may have difficulty accessing credit from banks and other financial institutions, which can limit their ability to expand and grow.
LIMITED ACCESS TO MARKETS
Cooperative societies may face challenges in finding buyers for their products and services, particularly if they operate in a competitive market.
LIMITED ACCESS TO TRAINING AND RESOURCES
Cooperative societies may lack access to the training and resources they need to operate effectively and efficiently.
LACK OF GOVERNMENT SUPPORT
Cooperative societies may not receive sufficient support from the government, which can hinder their ability to function and achieve their goals.
INTERNAL CONFLICTS AND DISPUTES
Cooperative societies may face conflicts and disputes among members, which can hinder their ability to function effectively.
COMPETITION FROM OTHER ORGANIZATIONS
Cooperative societies may face competition from other organizations, which can make it difficult for them to attract and retain members.
ECONOMIC DOWNTURNS AND EXTERNAL FACTORS
Cooperative societies, like any other organization, may be impacted by economic downturns and external factors such as changes in government policies and natural disasters, which can affect their operations and financial stability.
LACK OF RESPONSIBILITY AND COMMITMENT
Since they see the collaboration as “simply a group,” the participants have a carefree approach towards it. They only do their quota and depart, leaving the majority of the work to their bosses.