This is a detailed guide on the importance of cooperative societies in Nigeria, read to the end to gain more understanding of cooperative society.
The importance of cooperative societies in Nigeria cannot be underrated, it has helped many people out of poverty.
However, not everybody in Nigeria knows what cooperative societies are and how they can benefit from them.
This article on the importance of cooperative societies in Nigeria will teach you everything you need to know about cooperative societies and the need to become a member.
Also read: Business Opportunities in Africa
About Cooperative Society
A Co-operative Society is an organization that is formed by like-minded people whose main goal is the advancement of the financial interests of its members.
It is an independent association where people voluntarily join to meet their everyday financial, social, and cultural needs through a jointly owned business.
In a cooperative society, members share their profits among themselves according to the amount of money each of them invested in the business.
However, cooperative societies are controlled by the Nigerian cooperative societies Act which provides for the registration of cooperative societies.
The registration of corporative societies in Nigeria is carried out at the cooperative society department of different states in Nigeria.
However, you cannot just wake up to form a cooperative society, you must follow the due process appropriate for the type of cooperative society you want to form.
If you want to form a saving credit cooperative society, you must have at least twenty members.
And if you want to form an agricultural cooperative society, you must have nothing less than fifty members.
However, for other types of cooperative societies, you can gather at least a minimum of ten members.
Furthermore, for your group to be registered as a cooperative society, your members must be at least fifteen years of age and above.
The board members should be at least eighteen years, and every member must have the same need as other members of the cooperative society.
Finally, every member must have a job relevant to the primary society and must be capable of paying fees and buying shares.
Types Of Cooperative Society In Nigeria
Below are the different types of cooperatives society in Nigeria.
1. Agricultural Cooperative Society
An agricultural Cooperative Society also known as a farmers’ cooperative society is a cooperative society where farmers bring their resources together to increase their yields and income.
2. Saving And Credit Cooperative Society
Savings and Credit Cooperatives are cooperative financial organizations owned and operated by people who share a common goal.
The people are the founder of the savings and credit cooperative society and they are also the managers for the purpose of encouraging savings and contributions
Members of this cooperative society can borrow at low-interest rates from the amount of money they have saved as a group.
3. Multi-purpose cooperative society
The multipurpose cooperative society, also known as a general cooperative, is a type of cooperative society established to achieve various purposes such as production, purchasing, selling, credits sanction, etc. for the monetary growth of its members.
Importance of Cooperative Societies in Nigeria
Below is the importance of cooperative societies in Nigeria, read to the end to know why you should register in a cooperative society.
1. Cooperative Societies Encourage Joint Entrepreneurship
Cooperative societies in Nigeria encourage like-minded people to come together to start profitable businesses that will boost their financial growth.
However, coming together to establish a business lowers the risk of business failure because of shared production, decision-making, and problem-solving.
2. Cooperative Societies Help Fight Inflation
Cooperative societies in Nigeria help in fighting inflation in Nigeria. Cooperative societies purchase products directly from the producers at factory rates and then sell them to the members at a low price thereby beating inflation.
Members of cooperative societies do not need to go to the open market to buy products at outrageous prices, as these commodities are easily accessible to them at a discounted price.
3. Cooperative Society Teach Morality
Cooperative societies in Nigeria teach you how to relate with people and also how to adhere to instructions and follow the right principles.
Since cooperative societies have to do with people coming together to contribute their quota for the betterment of others, you will need to be morally upright to relate well with people and also manage their finances and resources.
4. Cooperative Societies Improve Skills
Cooperative societies in Nigeria help to improve people’s skills. They help to improve your decision-making skills, business skills, communication skills, analytical skills, problem-solving skills, emotional intelligence skills, and all other skills you thought you did not have.
5. Cooperative Societies Encourage Savings
If you have the habit of spending every penny that comes into your pocket, then joining a cooperative society will salvage your situation.
One of the most rewarding habits to possess as a human being is the habit of saving. Cultivating the habit of saving will rescue you from an embarrassing situation and also help you in times of dire need.
6. Cooperative Societies Reduce Intermediary Theft
Many middlemen who buy from the producers at a lower price normally sell to the consumers at a very outrageous price to make more gains.
Cooperative societies put a stop to middlemen theft by buying goods directly from the manufacturers and selling them at a cheaper rate to the members.
7. Cooperative Societies Improve The Quality Of Life
Cooperative societies are important in Nigeria because they raise the standards of living of the people thereby contributing to the reduction of poverty in Nigeria.
Cooperative societies in Nigeria create better social and economic lives for their members even in the midst of difficult situations.
Members of cooperative societies contribute money to their members when they are in dire need, and also share the profits they make from selling their goods.
8. Cooperative Societies provide employment Opportunities
Cooperative societies in Nigeria provide job opportunities to their members. They provide their members with the tools they need to establish their businesses.
Cooperative societies in Nigeria enable members to participate directly in the manufacture and distribution of goods and services.
However, they also offer either long-term or short-term work to young people who are present in their operational area, and this in turn helps in lowering Nigeria’s unemployment rate.
9. Cooperative Societies Provide Low-interest loans
Cooperative societies in Nigeria make it easier for people to take low-interest loans without the requirement for collateral like other financial institutions.
Cooperative societies offer comparatively low-interest loans to their members with the support of other members who act as guarantors.
10. Cooperative societies boost social and economic growth
Cooperative societies in Nigeria make people come together to share their ideas thereby combatting social isolation.
Cooperative societies also contribute to the sustainable development of people by making them invest their money in authentic businesses to earn more.
11. Cooperative Societies Provide Food Security
Farmers can obtain larger profits from their products through agricultural cooperative societies in Nigeria.
Members of these cooperative societies put their resources together to make more gains, and also offer assistance, financing, and training to their members to grow.
Cooperative societies in Nigeria ensure that even the most deprived people with limited resources have access to the resources they require to cultivate their lands to make a profit and also make food available for people.
12. Cooperative Societies Promote Gender equality
Cooperative societies are for people of all genders; they provide a platform for men and women to pursue their goals.
Women in cooperative societies make money and participate in advanced work activities. They also participate in local community empowerment.
Currently, women are a larger number of cooperative societies members, and most of them are in positions of leadership.
13. Cooperative societies Encourage local Manufacturers
Cooperative societies in Nigeria encourage local manufacturers by purchasing their goods, and services, and also empower them.
By so doing, they help the local manufacturers have confidence in themselves and their products and also make wealth for themselves.
14. Cooperative Societies Encourage Unity
Cooperative societies in Nigeria foster peace among members regardless of social class, and ethnic group.
Members of cooperative societies collaborate with one another to increase their economic status for the betterment of their future and also their country.
15. Cooperative Societies Provide Training Programs
Cooperative societies in Nigeria organize workshops, seminars, and courses for their members to further equip them for the ever-changing society.
The participants in this training acquire skills such as ICT skills, baking skills, furniture making skills, catering, sewing skills, make-up skills, event decoration skills, hair-making skills, etc.
16. Cooperative Societies Impact society
Cooperative societies in Nigeria impact society by providing basic amenities in the rural areas, they also provide food and other essential needs.
Cooperative Societies In Nigeria
There are many cooperative societies in Nigeria but some are not functioning anymore. However below are the cooperative societies in Nigeria that are still functioning properly.
2. SeedersHub Multi-Purpose Co-operative Society Limited
3. Lekki Cooperative Multi-Purpose Society Limited
4. LUTH CMUL Cooperative Multipurpose Society Limited
5. NNPC Staff Cooperative Multi-Purpose Society Limited
6. Benevolent Cooperative
7. Cherit Cooperative Multipurpose Society Ltd
8. Frankis Cooperative Thrift & Credit Society Nigeria Ltd
9. Zero Interest Multi-Purpose Co-operative Society
10. Sweet-Suinix Investors, Savings And Loan Cooperative Multipurpose Society
11. Lagos Local Governments Co-operative Multipurpose
12. Prime Asset Housing Cooperative Multi-Purpose Society Limited
13. Cowries Cooperative
14. UNILAG Staff Cooperative
15. Zu Amurullahi Islamic Society
16. Academic Staff Multi-Purpose Cooperative Society Limited, Federal College Of Education Okene, Okene, Kogi
17. Acci Multipurpose Cooperative Society Ltd.
18. Afinifere Ora-Obbo-Ile Fadama Corporative Society
19. Agbedowo Crop Fadama Users Cooperative Society
20. AKURE OYEMEKUN IFEOLUWA COOPERATIVE SOCIETY
21. Al-Barka Multipurpose Cooperative Society
22. Amuludun Women Okeonigbin Fadama Resource Users Cooperative Society Limited
23. Ariyo Multi-Purpose Cooperative Society Limited
24. At-Tariq Multipurpose Cooperative Society Limited
25. Best Fadama Resource Users Cooperative Society Limited
26. Extra Capital Microfinance Cooperative Society
27. First Capital Microfinance Cooperative Society Limited
28. Fortune Co-Operative Society
29. Fuller Housing Cooperative Society Ltd
30. Global People Thrift and Savings Cooperative Society
31. Global Trust Multipurpose Cooperative Society
32. God Is Able Esie Fadama Resource Users Cooperative Society Limited
33. Golden Age Cooperative Society Limited Abuja
34. Gracesprings Cooperative Multipurpose Society
35. Guarantee Multipurpose Cooperative Society Ltd.
36. Ifelodun Vegetable Fadama Grower Cooperative Society Limited
37. Ifeoluwa Mushin Cooperative Thrift & Credit Society Ltd
38. Ifesowapo Agbeku Women Fadama User Cooperative Society
39. Ile-Oki Snail Rearing Co-Operative Society Ltd
40. Ilesha Fadama Community Cooperative Society Limited
41. Immaculate Pensioners’ Multi-Purpose Cooperative Society Limited Omu Aran
42. Inyass Cooperative Society
43. Ireti Mbe Fadama Resource Users Cooperative Group Farming Society Limited Oro
44. Irewolede Maize Fadama Co-Operative Society
45. Irewolede Oro Fadama Community Cooperative Society Limited
46. Isin Traditional Council Cooperative Society
47. Kwartma Staff Multi-Purpose Cooperative Society Limited
48. Lakemfa Multi-Purpose Cooperative Society Limited
49. Lasoju Tractor Hiring Co-Op Society
50. Lekki Cooperative Multi-Purpose Society Limited
51. LKA Multipurpose Cooperative Society Limited
52. Masukwani Poultry Farmers Multi-Purpose Cooperative Society Limited
53. Mega Cooperative Multipurpose Society
54. Messiah Women Cooperative Society
55. Nasarawo Olalomi Multi-Purpose Society
56. New Heaven Cooperative Multipurpose Society
57. Nigeria Immigration Staff Multipurpose Cooperative Society Limited
58. Ogbori Elemosho Multipurpose Cooperative Society Limited
59. Okuta-Ten Fadama Users Cooperative Society
60. Omupo District Teachers Multipurpose Cooperative Society
61. Ore Ofe Fadama Resources Users Cooperative Society
62. Shawu Latowo Women Fadama Co-Op Society
63. Solution Table Multipurpose Co-Operative Society Ltd
64. Tawakkul Multipurpose Cooperative Society Limited
65. Temitope Oke-Opin Poultry Fadama Resources User Cooperative Society Limited
66. The Coin Master Cooperative Investment & Credit Society Limited
67. The Nigerian-American Cooperative Multipurpose Society Limited
68. UITH Staff Multi-Purpose Cooperative Society Limited, University Of Ilorin Teaching Hospital
69. Upspring Multipurpose Cooperative Society Ltd
70. Zero Interest Multi-Purpose Co-operative Society Ltd.