THE ROLE OF FEDERAL GOVERNMENT IN CO-OPERATIVE DEVELOPMENT IN NIGERIA. (A CASE STUDY OF ENUGU STATE)
CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND OF THE STUDY
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.
CO-OPERATIVE PROMOTION
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.
REGISTRATION OF THE SOCIETY
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.
PROCEDURE FOR REGISTRATION
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 STRUCTURE OF CO-OPERATIVE SOCIETIES.
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).
PRIMARY SOCIETIES
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.
SECONDARY CO-OPERATIVES
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.
APEX 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.
1.1 STATEMENT OF RESEARCH PROBLEM
The government has in the recent past concentrated its efforts at providing co-operative infrastructure through the establishment and opening of co-operative societies. Although co-operative scholars have continued to look at co-operative societies as possessing great potentials on terms of development, not much seems to have been said about co-operative movement in Nigeria. Hence, co-operative has continued to be an underutilized way for development of society for most parts of Nigeria. It is against this background that this study therefore attempts to examine the appropriateness (effectiveness) of the principles and practice of Co-operation as a vital means of developing society in the field of Co-operative development. This problems also necessitated this study to focus on the evolution of Co-operation, techniques, principles, laws, duties, functions, problems and prospects of Co-operative in Nigeria.
1.2 SIGNIFICANCE OF STUDY
The establishment of Co-operative society presently in Nigerian has been taken for granted. Therefore, the significance is intended to highlight to the aspiring co-operative (students) the effectiveness (impact) of Co-operative societies and how to overcome some of the stumbling blocks (problems) on their ways.
This study will help in making government to appreciate co-operative development form a different angle other than mere errand do. However, the study will add t the body of knowledge and its prospects will enable us make useful recommendation for further studies.
1.3 RESEARCH QUESTIONS
a. Do Co-operative principles and practice creates better understanding of Co-operative society ?
b. Is Co-operative given its rightful places as one of the courses in Nigerian Universities and Polytechnics ?
c. Does Co-operative give room for entertainment ?
d. Do Co-operative create room for education?
1.4 RESEARCH HYPOTHESIS
H1: The principles and practice of co-operative create better understanding of operative society
Ho: The principles and practice of Co-operative do not create better understanding of Co-operative society.
H2: Co-operative is given its rightful place (Studies) as one of the courses in Nigerian institutions of higher learning
Ho: Co-operative is not given its rightful place as one of the course in institutions f higher learning.
H3: Co-operative create room for entertainment.
Ho: Co-operative do not give room for entertainment.
H4: Co-operative has given room for the for education of members of the public.
Ho: Co-operative has not given room for the for education of members of the public.
1.5 OBJECTIVES OF THE STUDY
This study aimed at offering and analysis various approaches to the understanding and application of Co-operative principles and techniques as vital means of c-operation under the field of industrial co-operative in University of Nigeria Nsukka (UNN) and Enugu State university f Science and Technology (ESUT) and Institute of Management and Technology (I M T).
1.6 LIMITATIONS
The study is limited to students from Enugu state University of science and Technology (ESUT) and Institute of Management and Technology (IMT) under the accounting proffession.
1.7 DEFINITION OF TERMS
a. Policy- may made by a government, course of action adopted especially in State affairs.
b. Development- brings faith or out, evolve or new happening.
