Escolar Documentos
Profissional Documentos
Cultura Documentos
PROSPECTS OF
COOPERATIVE
SOCIETY IN
NIGERIA
1
(a case study of Farmers Cooperative Society. Oyi L.G. Anambra State.)
BY
……………………………………..
(AKP/WRR/BMG/BUS/ND2007/………..)
THE REQUIREMENT
IN BUSINESS ADMINISTRATION.
NOVEMBER 2009
2
CERTIFICATION
Administration.
__________________ ________________
3
DEDICATION
Jesus Name.
4
ACKOWLEDGEMENT
To God be the glory for its not by my power nor my might but by His grace
that is superfluous and more than sufficient. I thank Him for making this
programme a reality.
the following people to the success of the programme, the school registrar,
the assistance registrar and other friends who had contributed in one-way
5
I wish to conclude this acknowledgement by expressing my sincere
during the period of the programme. MAY GOD BLESS YOU ALL.
6
ABSTRACT
that:
Retail goods are made available for the consumption of the cooperators as
personal income.
Cooperative enjoys soft loan benefits from the governments, banks and
businesses.
7
Functional cooperatives education and training imparted on the members
8
TABLE OF CONTENTS
Cover page - - - - - - - i
Title page - - - - - - - - i
Certification - - - - - - - ii
Dedication - - - - - - - iii
Acknowledgement - - - - - - iv
Abstract - - - - - - - - vi
Table of content - - - - - - ix
CHAPTER ONE
INTRODUCTION - - - - - - 1
1.4 HYPOTHESES - - - - - - 6
9
CHAPTER TWO
ROOTS - - - - - - - - 10
GOVERNANCE - - - - - - 20
SOCIETY - - - - - - - 25
SOCEITY - - - - - - - 28
SOCIETY - - - - - - - 31
NIGERIA - - - - - - - 32
10
2.11 CO-OPERATIVES TODAY - - - - 33
SOCIETY - - - - - - - 34
COOPERATIVES SOCIETIES - - - 42
CHAPTER THREE
3.2 SAMPLING - - - - - - - 46
3.3 POPULATION - - - - - - 47
- - - - - - 52
CHAPTER FOUR
4.1 INTRODUCTION - - - - - - 54
11
4.3 CROSS-TABULATED ANALYSIS - - - 62
CHAPTER FIVE
5.1 FINDINGS - - - - - - - 68
5.2 SUMMARY - - - - - - - 70
5.3 RECOMMENDATION - - - - - 71
5.4 REFERENCES - - - - - - 73
12
CHAPTER ONE
INTRODUCTION
Revolutions of the 18th and 19th centuries. The status of which was
13
Glasgow, Indiana and Hampshire, although ultimately unsuccessful.
in Brighton.
the society to open their own store selling food items they could not
otherwise afford. Within ten years there were over 1,000 co-operative
From the report of the workshop held on 10th – 11th November 2008
14
movement in Nigeria, said the Cooperative Federation of Nigeria
50,000.
anytime.
15
(iii) do the government encourages and supports the formation of co-
(iv) Can It exist for long due to a legal entity separate from its
members.
It would have been a total waste of time, efforts, energy and of course
achieved at the end of the study. The major objective of the study
capital.
16
- cooperative Render service rather than making profit
17
1.4 HYPOTHESES
affairs or phenomenon.
HYPOTHESIS THUS:
18
Null Hypothesis (HO)
1. The liability of the members is not unlimited.
Alternative Hypothesis(HI)
1. The liability of the members is unlimited.
Material Procurement
19
very difficult to come by, as there is no library within the
town.
Time Constraints
Financial Constraints
20
1.6 THE STRUCTURE OF THE WORK
This research work is to be organized in five chapters as
follows:
1 Introduction
3 Research method
21
CHAPTER TWO
revised its Poor Laws in 1834. As both state and church institutions began
working people.
Friendly Societies established forums through which one member, one vote
the idea that a person should be an owner of property before being granted
22
a political voice. Throughout the second half of the nineteenth century (and
then repeatedly every 20 years or so) there has been a surge in the
industrial societies prior to the rise of trade unions and industrial factories.
Weinbren reports that by the end of the 19th century, over 80% of British
working age men and 90% of Australian working age men were members
ideas in economic enterprises, firstly amongst trade people, and later in co-
23
The cooperative movement has been fuelled globally by ideas of economic
held and worked for the goal of democratizing productive and reproductive
24
socialism, or through what came to be known as Leninism. Though they
In some countries, e.g. Finland and Sweden, there are specific forms of
25
However, they may also be unincorporated associations or business
are useful when the members want to allow: some members to have a
capital that exceeds fixed interest, neither of which may be allowed under
local laws for cooperatives. Cooperatives often share their earnings with
stock company).
2.2 IDENTITY
responsibility, democracy and equality, equity and solidarity" and the co-
social responsibility and caring for others. Such legal entities have a range
26
of unique social characteristics. Membership is open, meaning that anyone
Let us take one example. Suppose a poor villager has two cows and gets
surplus of five liters of milk. What can he do with the surplus? He may want
to sell the milk but may not find a customer in the village. Somebody may
tell him to sell the milk in the nearby town or city. Again he finds it difficult,
as he does not have money to go to the town to sell milk. What should he
do? He is faced with a problem. Do you have any solution for him?
One day that poor villager met a learner of NIOS who had earlier read this
lesson. The learner told him, you see, you are not the only person facing
27
this problem. There are many others in your village and also in the nearby
village who face a similar problem. Why don’t you all sit together and find a
solution to your common problem? In the morning you can collect the
surplus milk at a common place and send somebody to the nearby town to
sell it. Again in the evening, you can sit together and distribute the money
according to your contribution of milk. Of course first you have to deduct all
That villager agreed to what the learner said. He told everybody about this
new idea and formed a group of milk producers in his village. By selling the
milk in the nearby town they were all able to earn money. After that they did
not face any problem of finding a market for the surplus milk.
This process continued for a long time. One day some body suggested that
instead of selling only milk why not produce other milk products like ghee,
butter, cheese, milk powder etc. and sell them in the market at a better
price? All of them agreed and did the same. They produced quality milk
products and found a very good market for their products not only in the
Just think it over. A poor villager, who was not able to sell five litres of milk
in his village, is now selling milk and milk products throughout the nation.
28
How did it happen? Who made it possible? This is the reward of a joint
effort or co–operation.
The term co-operation is derived from the Latin word co-operari, where the
word co means ‘with’ and operari means ‘to work’. Thus, co-operation
means working together. So those who want to work together with some
help as well as mutual help. The main objective is to provide support to the
members. Nobody
pool their individual resources, utilise them in the best possible manner,
and derive some common benefit out of it. In the above example, all
common place and sold milk and milk products in the market. This was
possible because of their joint effort. Individually it would not have been
possible either to sell or produce any milk product in that village. They had
purpose.
29
In a similar way, the consumers of a particular locality can join hands to
provide goods of their daily need and thus, form a co-operative society.
Now they can buy goods directly from the producers and sell those to
Because they buy goods directly from the producer and thereby the
on the part of a single consumer to rather buy goods directly from the
producers? Of course, not. In the same way people can form other types of
Although all types of cooperative societies work on the same principle, they
differ with regard to the nature of activities they perform. Followings are
They buy goods directly from the producers or manufacturers and thereby
30
2. Producers’ Co-operative Society: These societies are formed to
need for production like raw materials, tools and equipments, machinery,
etc.
individually. The society collects the products from the individual members
Anambra State.
construct houses or flats and allot the same to members. Some societies
31
also provide loans at low rate of interest to members to construct their own
Retailers' cooperative
Workers cooperative
32
outside owners in a "pure" workers' cooperative, only the workers own
community members or capitalist investors also own some shares are not
characteristic that the majority of its workforce own shares, and the majority
Social cooperative
33
workers and previously unemployed people who wish to integrate into the
labour market.
profits may be distributed, interest is limited to the bond rate and dissolution
the objective is the general benefit of the community and the social
the labour market. The categories of disadvantage they target may include
disorders and problems with the law. They do not include other factors of
34
Consumers' cooperative
decisions, and elect the board of directors from amongst their own number.
op.
the United Kingdom, which offers a variety of retail and financial services.
35
Business and employment co-operative
a secure income. The innovation BECs introduce is that once the business
independently, but can stay and become a full member of the co-operative.
BECs thus provide budding business people with an easy transition from
new horizons for people who have ambition but who lack the skills or
confidence needed to set off entirely on their own – or who simply want to
context.
36
2.6 CHARACTERISTICS OF CO-OPERATIVE SOCIETY
from other forms of organsation you have learnt earlier. Let us discuss its
characteristics.
to all those who have a common interest. A minimum of ten members are
does not specify the maximum number of members for any co-operative
society. However, after the formation of the society, the member may
voluntarily, that is, by choice. A member can join the society as and when
he likes, continue for as long as he likes, and leave the society at will.
societies are placed under state control through registration. While getting
registered, a society has to submit details about the members and the
37
iv. Sources of Finance: In a co-operative society capital is contributed by
all the members. However, it can easily raise loans and secure grants from
society the small farmer having one share has equal voting right as that of
iv. Service motive: Co-operatives are not formed to maximise profit like
retaining a small margin of profit. It also provides better quality goods to its
38
v. Separate Legal Entity: A Co-operative Society is registered under the
legal entity, with limited liability of its members. Death, insolvency or lunacy
of a member does not affect the existence of a society. It can enter into
agreements with others and can purchase or sell properties in its own
name.
providing services
Profits are not earned at the cost of its members. Profit generated is
distributed to its members not on the basis of the shares held by the
39
vii. Self-help through mutual cooperation: Co-operative Societies thrive
working jointly on the principle of “Each for all and all for each”, the
operative Societies Act, of any country. At least ten persons having the
application along with the bye-laws of the society containing the details
about the society and its members, has to be submitted to the Registrar of
Registration.
40
2. Bye-laws of the society containing:
advantages:
compared to a joint stock company. Any ten adults can voluntarily form an
Societies.
ii. Open Membership: Persons having common interest can form a co-
41
administration. This committee is accountable to all the members of the
society.
profit is eliminated.
vi. State Assistance: Both Central and State governments provide all
kinds of help to the societies. Such help may be provided in the form of
vii. Stable Life: A co-operative society has a fairly stable life and it
continues to exist for a long period of time. Its existence is not affected by
42
2.9 LIMITATIONS OF CO–OPERATIVE SOCIETY
limitations.
raise from its member is very limited because the membership is generally
co-operative societies.
manage the society. Again, because of limited capital they are not able to
service to its members rather than to earn profit. This does not provide
43
enough motivation to the members to put in their best effort and manage
iv. Lack of Co-operation: The co-operative societies are formed with the
idea of mutual co-operation. But it is often seen that there is a lot of friction
society.
for support and patronage in terms of grants, loans subsidies, etc. Due to
Nigeria are:-
- Employment creation
44
- Contribution to GDP though statistics not available but impact is known
businesses.
45
In the UK, co-operatives formed the Co-operative Party in the early
operative Party now has a permanent electoral pact with the Labour
Roy (1964:1) says that there is hardly a country in the world in which
46
individual farmers were two small in terms of farm holdings, total
to nurture small groups with little financial means into larger groups
to be done as a group.
47
increased domestic production of food, industrial raw materials,
48
? Promotion of workers empowerments. Many civil servants and
community of nations.
through the training and skill acquired from the democratic principles
personal income.
ways.
49
? Cooperative enjoys soft loan benefits from the governments, banks
individual businesses.
insecurity.
is that it foists a saving habit on members, since its funds are pooled
50
Cooperative societies in Nigeria have for decades, resolved some of
lost their cooperate identities with the Cooperative Bank Plc which
51
country. And certainly there can be no bigger provider of employment
will succeed. A true leader does not cut corners, does not inflate
programmes. For many years the movement was unable to pay its
52
cooperative movement was derived entry, participation and gain that
mismanagement
of coordination of activities.
53
(x) Government interference and manipulation of cooperative
the most appropriate strategies for the future. At the inception of modern
54
withdraws. However, seven decades of modern cooperation in Nigeria,
regards could not help the matter which is mostly the legal framework. The
Cooperative Development Policy of 2002 were not clearly defined and this
cooperative movement
requirements.
55
CHAPTER THREE
manipulated;
The subjects give the data the natural settings of their workplaces;
56
(v) The impacts of the confounding factors are “controlled” statistically;
and
(vi) The aim of the research may span from the exploration
sample errors.
The survey research method also has the merit that data collection
activated laboratory. Data are got directly from the respondents. The
advantage that the survey yields data that suggests new hypothesis
57
3.2 SAMPLING
samples drawn from it. The population in this study is from the senior
size of 200.
The list of all senior and junior staff of the firm is from the personnel
paper, put in a basket and the papers were folded to cover the
replacement was done until the sample of 100 respondents per group
58
3.3 Population
The population, in this study is the totality of the senior and junior
State Nigeria.
The sample size is 200 and this number of respondents was chosen
from the population. The rationale for studying a sample rather than
59
3.4 DATA COLLECTION
Questionnaire
set.
60
Another attribute of the questionnaire that is sometimes, though not
The questionnaire also has some demerits. It has noted that for
researcher is not a policeman that can compel answers. That is, the
61
In this research project, a structured and undisguised questionnaire is
section and the section on the data on the actual subject matter of the
purpose of the data collection which was to collect primary data for
format type.
Ten (10) of the questions have alternative answer for the respondents
to tick.
The structured questionnaire has the merit that it yields data that is
62
Interview
means of the personal interview. The method has the merit that it
telephone methods. It also has the merit that it gives a very high
completion and response rates. It has the merit that the interview has
interview method has the demerit that it is more costly than the mail
Observations
was also carried out. This was to enable the researcher to witness by
herself the officers of this firm and to interact with these people.
The researcher and three other field data collectors did the fieldwork.
The field data collectors were other classmates also offering the Part-
63
They had no problem gaining entrance into the office under
TOOLS
The data presentation tools are simple bar charts, histograms, and
(c) Caption
(f) The head note or prefatory note or explanatory just before the
title.
Anyiwe (1994) has observed that a table has the following merits over
64
(g) Comparisons are easily made utilizing a table than a prose
information;
table; and
formation:
and the chi-square test of population proportions for testing the two
65
CHAPTER FOUR
4.1 INTRODUCTION
been handled. In this chapter the data presentation and analysis are to
bar charts, one histogram and one pie chart to make it amenable for
and Dalton (1995) that the factual information from the data can be
Apart from the heading above, the other headings in this chapter
include:
Data Presentation,
Percentage analysis
Cross-tabulated analysis
Hypothesis testing
66
4.2 DATA PRESENTATION
TABLE 4.1
THE SUMMARY OF THE PERSONAL DATA
OF THE RESPONDENTS
1 SEX FREQUENCY
Male 150
Female 50
Total 200
Angles
2 Marital Status subtended
Married 130 in degree
Single 70
Total 200
3 AGE
21-30 years 90
31-40 years 90
41-50 years 10
51-60 years 10
Total 200
4 HIGHER
EDUCATIONAL
QUALIFICATION
DIPLOMA 10 18
OND 30 54
HND 80 144
FIRST DEGREE 20 36
SECOND DEGREE 40 72
NIM 20 36
TOTAL 200 360
The marital statuses of the 200 respondents it is found that 130 of them
are married while 70 of them are single. For the ages of the 200
respondents they are 21-30 years, 31-40 years, 40-50 years, 51-60
67
qualification of the 200 respondents they are diploma, OND, HND, First
Degree, Second Degree, NIM. and they have frequencies of 10, 30, 80,
Figure 4.1 below shows the simple bar chart of the data on the sex of the
respondents.
160-
140-
120-
100-
80
60 --
40 -
20
- TABLE 2. GENDER OF THE RESPONDENTS
0 - Frequency percentage Valid Cumulative
MAIL Percent
FEMALE Percent
MAIL 150 Gender 75.0 75.0 75.0
FEMALE 50 25.0 25.0 100.0
Total 200 100.0 100.0
68
Source: from data in table 1 (generated from SPSS) statistical
package for social science.
From figure 4.1 above, it is shown that male respondents have the
modal frequency of 150 out of the 200 respondents while the female
Figure 4.2 below shows the simple bar chart of the data on the marital
FIGURE 4.2: THE SIMPLE BAR CHART OF THE DATA ON THE MARITAL
STATUSES OF THE RESPONDENTS
140 -
120 -
100 -
Frequency
80 -
60 -
40 -
20 -
0 -
MARRIED SINGLE
Marital status
69
Status frequency Percentage Valid Cumulative
Percent Percent
MARRIED 130 65.0 65.0 65.0
SINGLE 70 35.0 35.0 100.0
Total 200 100.0 100.0
From figure 4.2 above, it is shown that the married respondents have
the modal frequency of 130 out of the 200 respondents while the
40
20
0
51 TO 60 10 70
5.0 5.0 100.0
From figure 4.3 above, it is shown that the age classes limit
Figure 4.4 below shows the pie chart of the data on the
20%
HND
80%
FIRST DEGREE 10%
71
TABLE 4. 5 EDUCATIONAL QUALIFICATION OF THE RESPONDENTS
Educational Frequency Percentage Valid Cumulative
level Percentage Percentage
DIPLOMA 10 5.0 5.0 5.0
72
From figure 4.4 above, the Educational Qualifications are Diploma,
O.N.D, First Degree, Second Degree and NIM and the subtended
angles in degrees are equal to 180, 540, 1440, 360, 720 and 360 and
PERCENTAGE ANALYSIS
Table below shows the percentage analysis of the responses to the yes or no
Questions
73
S/ QUESTIONS YES % NO % TOTAL TOTAL
N
IN NUM. IN %
respondents
39 939
The above table shows that the total of 100 respondents
(out of 200 said YES. this proved that The liability of the
members is unlimited
TABLE 7. Cross-tabulation 2
OND 19 19
HND 14 30 47 91
FIRST
DEGREE 10 9 19
SECOND
75
DEGREE 40 40
NIM 21 21
Total 104 40 47 9 200
The above table indicates that The society is managed by one person
only. 104 respondents out of 200 said yes. While 40 did not agree
of significance.
between the statistics and the population parameters and what ever is
76
CHI-SQUARE TEST
The c is one of the simplest and most widely used non-parametric test
between theory and observation i.e. with the help of c test we can
of the theory to fit the observed facts. If c is zero, it means that the
c =∑ (O-E)2/E
Where,O=Observed frequency
For the data analysis and the interpretation, the researcher has
construct the frequency table, various types of charts and to find out
77
Chi-Square Test (1)
Residuals
78
values for the residuals indicate that the observed values are very
basis for rejecting the null hypothesis is a function of the value of the
tested statistic.
Reject the null hypothesis if the calculated value of the test statistic is
Accept the null hypothesis if the calculated value of the test statistic is
TEST STATISTICS
The liability of the The society is
members is
unlimited. managed by
one person
only.
79
Chi-Square 73.880 94.120
df 3 3
note: df = degree of freedom
Level of significance……….0.05
Critical value………………………43.0
Calculated value……………………73.880
From the above analysis, it could be seen that in the first test, The
In the second test which state that The society is managed by one
while the calculated value from the test statistics table is 94.120.
Looking the data above, it shows very clear that the calculated value is
CHAPTER FIVE
5.1 FINDINGS
80
common economic interest. Its aim is to serve the interest of the
price to consumers.
81
3) Co-operative marketing society - formed to ensure a favourable
market for small producers to sell the output and get a good return on
sale.
82
to absence of direct reward for individual effort. Excessive
government regulation and control may also pose problems for them.
5.2 SUMMARY
societies are operating with inadequate capital to cope with the need
of SMEs.
5.3 RECOMMENDATION
83
? Immediate review of the cooperative law in line with the cooperative
environment.
cooperativeness.
84
? A guided recapitalization of the cooperative sub-sector
REFERENCES
85
cooperative federation of Nigeria South west zone at Obisesan Hall, Ibadan,
September 7th.2006.
Publishers, Ibadan.
Frank, R.H Gilorich T & Regan, D.T (1999): "Does studying Economics Inhibit
U.S.A.
Geneva.
86
Lawal, T.O 2006: Introduction to modern cooperative management, Akure, alibi-
Eyo&co Ltd.
Olesin, Ayo (2007) "making Cooperative societies work for you", Sunday
Rana, J.M 1970: AO,s and principles of cooperatives and Applications in different
www.dallasfed.org
consumer credit and out sourcing NAPPCO", editorial, Friday, January12, 2007,
pg.4
87
Wikipaedia (2006). Economic Development, www.wikipaedia.com
88