The roles of co-operative society as a valuable instrument for poverty alleviation and development of nigeria economy (a case study of enugu-south l.g.a).

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The roles of co-operative society as a valuable instrument for poverty alleviation and development of nigeria economy (a case study of enugu-south l.g.a).


Poverty, ‘state of being poor’ is ripping deep inside South Africa, some part of Asia and Africa which Nigeria is not an exception. This is reflected in the countries low level of her per capital income. When about seventy percent of Nigerians are living in a rural areas there is an urgent need to introduce co-operative societies as a valuable instrument for our economic development as well as to alleviate the high level of poverty in the country.

Co-operative which involves coming together of persons pulling their resources together because they have the same common felt need and to form a business enterprise which will help in solving their socio-economic problems and as well be the owner of the society. These may be inform of consumer co-operative society, Agricultural, credit, marketing, industrial, housing, production-promotion co-operatives, etc

Co-operative societies differ from other business in the manner in which surplus earning are distributed to members. The surpluses are shared equitably to the customers or owners of the co-operative society ie in proportion to their patronage and not in proportion to their capital involvement’s. Co-operatives are owned and controlled by members on a democratic basis. Which make them to be self-employed and have something for investment? These help the social and economic well being their-by reducing the poverty rate and helps in developing Nigeria economy.


Introduction 1

1.1 Background of study 1

1.2 Statement of the problem 4

1.3 Obvjective4s of the study 5

1.4 Significance of the study 7

1.5 Scopes and limitations of the study 8

1.6 Definition of terms 9


Review of related literature 11


Research design and methodology 26

3.1 Research population 26

3.2 Determination of simple size 27

3.3 Source of data 27


Data Analysis and Presentation 28


Summary of finding, recommendation and conclusion 41

5.1 Summary of findings 41

5.2 Recommendation

5.3 Conclusion 45

Bibliography 47

Questionnaire 50



Co-operative provides vehicle for brooding and enriching people’s lives. It is a known fact co-operative is playing leading roles in some of the largest and most important social and economic development of our time. This points out that co-operatives are vital element in some country in the word today and that they are flexible instruments that can be adapted to serve their members in the future.

Co-operatives all over the world are managed democratically both in principle and structure. The present political democracy and economic liberalization present in Nigeria is creating a new environment and offer new opportunities that are favorable to the development of co-operative in Nigeria. These new conditions offers themselves to both co-operatives, national and international private companies.

Furthermore, to justify its prime role in social-economics and political development particularly in developed countries like England, France and Germany. It has developed from single traditional terms of mutual institution to a formal organization institution. This institution has gained world-wide acceptance because of the great role it has been playing in the economic development of various countries particularly in the developing countries.

The economic success of co-operatives inevitably has social efforts. Co-operative management brings better yields, which in turn yields, better income and which in a sense means better living standards, better housing, better education for members and their families.

No factor underline the tragedy of Nigeria present political and economic stagnation than the phenomenon of poverty with its attendant under development.the crippling poverty with FACING Nigeria has been well documented by the world bank and united Nation. Perhaps a better picture can be given by looking at the conditions of the children who suffer permanent damage because of poor education inadequate diet and dilapidate housing. The health problem of the children of the rural poor are particularly serious as indicated by the medical doctors who examined children in the country during the last house to house immunization. The presents of these children are unemployed where they are employed, some of them are underemployed.

Also, one of the economic problems that has continue to eat deep into the system, resulting to poverty is inflation. This is persistent upward movement in the general price level (or averages level of price) for goods and services. This is an increase in the general level of purchasing power of the naira. As the price level goes up, the purchasing power of the naira decline as well as when the price level goes down, the purchasing power of the naira rises. The little money in the hands of the rural poor masses cannot buy anything as a result of the inflation in the country.

Development and its importance especially rural development cannot be over emphasized in Nigeria. In a country where more than 70 percent of the populations are rural dwellers. It becomes more crucial why emphasis should be placed on the rural peasants. Without them, the key to sustainable and grass development cannot be realized in the country, so rural dwellers must involve ways of making them part and parcel of the development programs through proper sensitization, mobilization and empowerment.


The social political environment existing now in the country since may 1999 who the present government of Obasanjo took over, is quite different from what it was in those early days of military regime and pure capitalism. Today it is the mixed economy everywhere with both private and public properties in existence. Nobody will want the society to return to the old dictatorship and subsistence living. Everybody enjoy high technology, division of labor, standardization, mass production of a wide assortment of goods, the rights and freedom of the masses are respected, the interference from government in other business organization like the co-operatives are less. This and more characterize the modern economy.

On these regard, this research study is involving a critical analysis of the following issues relating to co-operative as a valuable instrument for poverty alleviation and Nigeria economy under the present democratic government.

Why do we need co-operative societies today.
How fast has co-operative societies contributed to our environment today both politically and economically?
The restricted development opportunities available to co-operatives.
Nigeria poverty and the way forward.
Development of Nigeria economy through co-operative societies.
Other economic and social benefits of co-operatives.


Economic development is measured by the ability to achieve certain goals or targets. These goals or a target relates to both a nation and its individual citizens. When maturity of interest between the nation and its citizens prevails the opportunity for success is greatest for co-operatives to make their maximum contribution to poverty alleviation and economic development, they must be complementary or rather competitive with the interests of the nation and its citizens. The citizens also are the actual or potential members of co-operatives. Because these association benefits from those who use their services. They are in a strategic position to economic development and poverty alleviation. They can be substantial force for improved production, marketing and general business partices as well as an educational vehicle for the strengthening of democratic institution, establishing better health standards of education and technology. These direct contributions to their individual members also strengthen co-operatives to help in the achievement of national goals.

On the basis of opportunities and its development, co-operatives and the society, social and economic ventures available to co-operatives only the more technical factors are assumed exclusive in theory. It is in this direction that this research study further gathers spiral momentum to achieve the following aim through a secular implementation of the Bellowed strategies.

Know the economic venture co-operatives can embark on.
To what extent do such economic venture contribute in alleviating the poverty of the masses.
The values of co-operative development.
Suggesting ways of budding up capital for co-operatives so as to enable them diversity into profitable ventures.
Obstacles withholding co-operative economic development and opportunities.
Solutions to such obstacles and relay them to all co-operative societies.


As voluntary association formed by people to satify their needs effectively than they could as individual, co-operative societies have been important instrument for raising societies the standard of living of the masses as well as development of the modern economy throughout the world. The rate of growth of rural co-operatives has been rapid during the past twenty years particularly in the nations of the world.

As credit agencies, co-operatives have had the advantage of fairly intimate knowledge of their members characters and circumstance as well as of local production possibilities. By so doing, they have realized an opportunity. Consequently this research study will ensure the clear elucidation of the following issues.

The special opportunities given to co-operative societies to contribute in improving the general well being of the masses.
The main objectives of co-operatives of co-operative society are to eradicate poverty.
And you will recognize how a co-operative society can be recognized as a self-help organization.


My area of study is the co-operative department ministry of commerce industry and technology Enugu ministry of commerce was autonomous but later it was merged with the ministry of co-operatives department in the ministry of commerce, industry and technology. This department acts as supervisory organ of co-operative societies within the state. the department duties includes to register, audit, inspect, arbitrate, organise co-operative societies etc. this ministry has a staff strength of one hundreds and eight. They have paid employees that receive monthly salaries depending on their qualifications and grade level which encompasses first school leaving certificate to degree holders.

There are some difficulties that militates against the study such as time and the gathering of research materials. This seems to be one of the major constraints of the study. Lack of materials in the school library as a whole is very big hindrance to the research work.

There are other factors such as finance to embark on some research. I mean intensive research work. This draws back the rate of improvement that would have been achieved and of great upliftment to the study.


POVERTY: This simply means a state of being poor. Having little money and not able to get the necessaries of life like good food, shelter, cloth, poor education, housing etc.
ALLEVIATION: this implies making suffering like the subject matter poverty less or easier to bear.
ECNOMIC DEVELOPMENT: This simply mean desirable changes in the economic and social super-structure of the society, that is an improved in the production techniques and in the consumption choices.
CO-OPERATIVE SOCIETY: a co-operative society is an association of persons who have voluntarily joined together to achieve a common end through the formation of a democratically controlled organization, making equitable contributions to the capital required and accepting fair share of the risks and benefits of the undertaking in which the members actively participate.
DEMOCRATIC GOVERNMENT: democracy is defined as a government of the people by the people and for the people. In modern democracies, thereforethe people elect their own representatives in free and fair election. One important point about democracy is that decisions are usually by majority vote.


Can co-operative society raise the level of average income?
What are the people attitudes in forming or joining co-operative societies?
Why has co-operative movement failed under previous military government?
Do you think the establishment of more co-operative one can generate jobs for the unemployed?a

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