Role Of Federal Government In Co-Operative Development In Nigeria (A Case Study Of Enugu State)

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Co-operative Operation and Administration has been written primarily o satisfy the demands many student in the school of financial studies who have for a factual and authoritative course on Co-operative development.  This project thus   been written with clarity of exposition focused on the  practical requirements for standing and operating a co-operative society successfully.

But for years the general public particularly the axious co-operators and professionals whose activities deals directly with co-operative problems have been yearning for a course in co-operative Development, with teaching and learning of the subject.  This can be attributed to lack of sufficient reference materials in the area and abstract presentation of the course beyond our local back background by the researchers of the few materials available.

So, this project work is of five chapter.   Chapter one which deals on the introduction of Co-operative society, its importance statement of research problems, hypothesis, limitations if the study etc.  In chapter two, it ray among other the national Co-operative principles law and regulations in research design and Methodology and dealt within chapter three,. The method of collecting data, instrument used, local or area of study, the sample population etc. Chapter four is where the data analysis and presentation can be found.

And also demographic analysis and hypothesis testing can be found there too. In chapter five, we found finding of different result form hypothesis there recommendation for improvement and lastly their conclusion.



1.0              INTRODUCTION

1.1       Statement of Research Problems

1.2              Significance of the study

1.3              Research Questions

1.4              Research hypothesis

1.5              Objectives of the study

1.6              Limitations

1.7              Definition terms


            CHAPTER TWO

2.0              LITERATURE REVIEW

2.1       Co-operative law enactment

2.2              Needs for Co-operative Societies in Nigeria and their responsibilities.

2.3              Appointment of pannel to review the Co-operative principles, laws and reputations in Nigeria (1977)

2.4              Terms of reference given to panel

2.5              Limitations of policy  guidelines

2.6              Government views on the report of the review pannel on Co-operative principles, laws and regulations in Nigeria.

2.7              Why Co-operatives are necessary

2.8              The closed economy

2.9              The Industrial Revolution

2.10          The motives of the Pioneers

2.11          Object law the first

2.12          Co-operative Societies today

2.13          The place o Adult education in Co-operative Action

2.14          Classification of |Co-operative According to group served.


3.0              Research Design and Methodology

3.1       Introduction

3.2              Area of study

3.3              Population of the study

3.4              Sample  and Sampling  Procedure

3.5              Instrument for data collection

3.6              Validity

3.7              Method of data analysis


4.0              Date Presentation and Analysis

4.1              Presentation  of Data

4.2              Demographic Analysis of data

4.3              Test of Hypothesis

4.4              Interpretation of Results


5.0              Summary of findings

5.1       Discussion of findings

5.2              Conclusion

5.3              Recommendation




1.0              INTRODUCTION

The importance of the Co-operative movement in Nigerian is increasingly being realized as well as many developing countries.

In Nigeria, the lead has been taken by both the Federal and State government who have declared in policy papers, and through concrete actions that Socio economic transformation can best be achieved through co-operative development.  The co-operative laws of 1935, Patronage in the from of tax exemptions, subsidized purchases and credit, as well as administrative supports are a few of the  manifestations of the government intentions.

What has been lacking however, is the ability to  the Co-operative sector to stand on its own.  Ever since its inception, it has depended on government staff and hardly on its own manpower resources.  This, No doubts as a result of a popular but mistaken general notion that the Co-operatives are social welfare organization, and therefore should not shoe results f profits/surpluses.

Hence there was no coherent planning nor institutional arrangement to guide, monitor and ensure the implementation of Co-operative projects.  The past three National development plans are living   witness to these deficiencies.  In accepting the challenge of this obligatory project for final year students of the departments of Accountancy of the Institute of Management and technology, (IMT). I have, therefore chosen to present my research paper on the role of the federal government in Co-operative development in Nigeria.


It is essentially the primary duty of a co-operative field workers to see to the promotion f the formation of a new society.  The method of carrying out this promotional duty in Nigerian has since the 70’s changed.  Prior to this period, this duty involved co-operative inspectors going to the market places, canvassing and calling on people to embrace the formation of Co-operative societies.  This method has become obsolete.  People are now increasingly aware of the existence and benefits of Co-operative societies and such people who are interested in forming such societies go to the co-operative inspector/held worker in his office to make liquorices about starting a new Co-operative society in their areas.  It is then the duty of the field worker to furnish them with all the necessary information and guidance.

During the formation stage, the co-operative field worker will take the following steps:-

1.             He will attend the society’s inaugural meeting.  This will afford him the opportunity of communicating to members all they need to know about Co-operative.

2.             He will teach the secretary his secretarial and other duties. The Secretary is the life wife f every Co-operative Society.  Therefore, he must be knowledgeable and eager to perform his duties effectively.

3.             The filed worker should endavour to educate the members at this early stage. This is virtually necessary for the success of the new Society.

4.             He should assist the society in choosing its economic projects.


Before a Co-operative Society is considered for registration it must have satisfied the following conditions:-

1.                 The nascent /Society must have been holding regular monthly committee and general meetings.  These Meetings must be well attended and well-recorded.  It is stipulated in the co-operative law that the committee meeting must be held once a month, while general meeting are held as often as stipulated in the society’s bye law.

2.                 There must be evidence of prompt payment of shares and regular thrift-savings.  The payment of share indicated members interest in the society.

3.                 The secretary of the society must be efficient.  The Secretary of any Co-operative Society is the life-wire of that Co-operative society.

4.                 There must be evidence of constant Co-operative orientation for members.  This underscores the fact there must be proper education or members.


The Co-operative field worker will take the following steps to get the society registered.

1.            Preparation of economic survey report with a recent trial balance.

2.            Direct the society on how to prepare the seal

3.            Get the society to understand and adopt the model bye-laws.

4.            Help the society to complete the application form for registration.

The following details will be required on the form.

a.       Name of the proposed society.

b.      Address of society indicating actual location in village and or town and local government Area.

c.       Area of Operation

d.      Exact objects of the society

e.       Number of shares and value of share

f.       Is liability to be limited or unlimited ?

g.      Qualifications proposed for membership

h.      Briefly description of proposed working of society.

i.        Is there a proposal to raise capital other than by raising share ?  If so, what amount of and by what means ?

j.        Is there any other society of the same type in the village ? If so, why can’t the members join that society?

k.      Names of president, vice-president, treasurer and secretary ?

l.        Membership at time of application

m. Proposed relationship with secretary societies

n.      Names.  Signatures, occupation and address of ten members applying that the society under the law might be registered.

o.      The data of application


5.            Handover to his senior officer, the following documents for registration:-

a.            Completed application forms (2)

b.            Economic survey report, with recent trial balance.

c.            Adopted bye-laws (3)

The Co-operative field staff has now worked up the society for registration. His other task is to continue to supervise and guide effectively.


The organizational structure of the co-operative movement in Nigeria follows the general pyramid (tier) pattern of co-operative organizations through the world.

In other words we operate the three-tier structure of Co-operative societies (namely primary, secondary, and apex).




When individuals recognize their socio-economic felt needs, they pool their resources together towards meeting such felt-needs.  The result will be the formation of primary societies, usually at the village level.

A primary society is registered society consisting of individuals as members.  Non shall be registered which does not consist of at least then individuals each of whom is qualified for membership as specified in section 24 (1) of the  eastern Nigeria Co-operative societies law and rules 1963.

Primary societies exist to provide their members with such basic services as thrift and credit, seed procurement for farmers and such other services which members cannot afford economically it they were not members.


Primary societies of the same line of activity encounter problems which they as individual societies cannot solve by virtue of their small resources and size.  They pool their resources together not a secondary society  whose operations may cover the local government level.  In such places they popularly called Divisional co-operative councils and represent the entire co-operators in their area on all matters affecting co-operative development.

A secondary society is therefore a registered society of which primary societies are members.  Secondary societies are set up to facilitate the operations of the primary societies in accordance with Co-operative principles. None will be registered unless at lest two registered societies are members. They provide services such as book-keeping, printing, advertising, transportation, storage and so on for the primary societies.


They are at the summit of the pyramidal tier structure of the Co-operative movement at he state level or at the national level.

The are sometime called the members of the Co-operative movement.  Both primaries and secondaries may affiliate to apex societies on their various lines of activities.  They serve as the link between the Co-operative movement and the government as well as all the outsiders.

The pyramidal structure of the Co-operative movement is Nigeria is shown diagrammatically below.

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