THE VIABILITY OF COOPERATIVE SOCIETIES AS BUSINESS ORGANIZATION IN AHIAZU MBAISE LOCAL GOVERNMENT AREA OF IMO STATE.

ABSTRACT

        The objective of this research was to find out how cooperative societies in Ahiazu Mbaise local government area are viable in their business transactions. This research was to present a conceptual framework which can reflect the paradigm for the capability and viability of cooperative societies as a business organization. The study consists of 40 cooperative societies selected from the said local government area out of a population of 92 registered cooperative societies in Ahiazu Mbaise local government area. It was found that cooperative societies are viable in some parts of the area and are not viable in some part pf the area in Ahiazu Mbaise local government area. Those not performing well were attributed to several problems facing their societies. These problems are poor funding which the major constraint to the viability of cooperative as a business organization, managerial incompetence, lack of basic infrastructure, lack of members’ education and members’ commitment, high level of illiteracy among the members, etc. Those that are viable were attributed to the following; provision of proper education to the members to improve their various business activities, cooperative help members to improve their economic well being thereby raising their standard of living, few members of cooperative obtained government’s assistance and majority of the members have years of experience in cooperative. This shows that many of the members know what cooperative is all about and the benefits of being a member. Cooperative societies in Ahiazu Mbaise local government area are profitable due to proper management and proper planning of the business, thus making cooperative as a business organization to be viable. Based on these findings, some recommendations were made.

TABLE OF CONTENTS

Title page                                                                         i

Certification                                                                     ii

Dedication                                                                       iii

Acknowledgement                                                            iv

Abstract                                                                           vi

Table of content                                                               vii

CHAPTER ONE

1. Introduction                                                                              1

1.2     Statement of the Problems                                                          7

1.3     Objectives of the Study                                                               8

1.4     Scope of the Study                                                                     9

1.5     Hypothesis                                                                                9

1.6     Significance of the Study                                                             10

1.7     Limitation of the Study                                                               11

1. Definition of Terms                                                                     12

CHAPTER TWO

2.0     Literature Review                                                                       13

2.1     History of co-operative societies                                                  14

2.2     Definitions and meaning of co-operative movement                       16

2.3     Principle guiding the operation of co-operative societies                 23

2.4     A co-operative option                                                                 27

• Economic and social viability in societies                                                 29

CHAPTER THREE

3.0     Research Methodology                                                                33

3.1     Sources of Data                                                                          33

3.2     The Population/sample size determination                                     33

• Sampling techniques                                                                   35
  • Instrument                                                                                36
  • Limitations to Data Collection                                                      36
  • Method of Data Analysis                                                              37

CHAPTER FOUR

4.0     Presentation, Analysis of Data                                                     39

4.1     Presentation of Data                                                                   39

4.2     Analysis of Data                                                                         42

4.1     Test of hypothesis                                                                      58

CHAPTER FIVE

5.0     Summary, Conclusion and Recommendation                                  69

5.1     Summary                                                                                   69

5.2     Conclusion                                                                                 71

5.3     Recommendations                                                                      72

Bibliography                                                                              76

Appendix                                                                                   78

CHAPTER ONE

1.0  INTRODUCTION

The modern type of cooperative was introduced formally into Nigeria by the then colonial administration in 1935. The British colonial government had in 1904 introduced the cooperative movement in India, which was one of the British colonies then.

The same 1904 was the year the then colonial government in India enacted a cooperative law in India. Following the successes recorded in India, the British colonial government in Nigeria tried to experiment the introduction of cooperative in Nigeria.

The same year, 1935, cooperative movement in Nigeria was born. First step was taken by the then colonial government in Nigeria to enact the Nigerian cooperative societies ordinance.

Before the formal introduction of cooperative in Nigeria, there had been moves by various groups and individuals to organize what looked like cooperative societies. During the early nineteen thirties, the cocoa farmers in the Western part f Nigeria were organized in to small cooperative societies. The initiative was taken by the then ministry of Agriculture. These cooperative societies could be described as the fore runners of modern agricultural cooperative societies. Though they used the name cooperative, they did not operate really under the cooperative principles as they were not guided by any cooperative law.

The colonial government tried to investigate the possibility and desirability of introducing the cooperative movement into their Nigerian colony. Thus, 1933, the government invited a cooperative expert, Mr. C. F. Strickland, from India and requested him to make an investigative tour of Nigeria and to advise the then Nigerian government on the desirability and possibility of Nigeria. Mr. C. F. Strickland carried out the investigation and submitted his report on the 17^th April, 1934. In his report titled, “Report on the introduction of cooperative societies in Nigeria” he strongly recommended the introduction of the cooperative movement in the colony of Nigeria, maintaining that cooperative societies would help to improve the economic and social conditions of Nigerians and among others; the report was accepted by the government. After the acceptance in 1935, the government enacted the first Nigerian cooperative societies’ law, while in 1936; regulations were drawn up to guide the running of cooperative societies. The Nigerian cooperative societies law was fashioned after the cooperative societies law operating in India, which was another British colony at that time. Cooperative cocoa societies started in the Western part of Nigeria.  1938, workers formed cooperative thrift and loan societies in the Eastern and Western parts of Nigeria.

In 1936, Major E. F. G. Haig was appointed the first registrar of cooperative societies in Nigeria. His legacy to the Nigerian cooperative movement thereafter, was nothing short of complete government control. Thus, control continued from the colonial time till date.