(Cooperative Economic)



This project work is channeled towards studying how to organize a viable co-operative society. It specifically dealt with motives for joining co-operative society, factors affecting the formation of co-operative society and Ten steps in organizing a viable Co-operative Society.



1.0   Introduction

1.1  Statement of  Research Problem

1.2   Purpose of the Study

1.3   Background of the Study

1.4   Theoretical Foundation of the Study

1.5   Research Question

1.6   Limitation of the Study

1.7   Significant of Study


2.1    Who is a Co-operator?

2.2    What is a Co-operative and Value?

2.3    What is a co-operative society?

2.4     Co-operative values

2.5    Types of Co-operative Societies

2.6    Consumer Co-operative

2.7    Agricultural Co-operative

2.8    Productive/Producer Co-operative

2.9    Classification of Co-operatives Societies

4.1           According to Functions

4.2           According to the Economic status of members of the Society.

4.3           According to the sector of the Economy in which the societies are engaged.

4.4          According to the number of function carried out by the societies.

4.5          According to the level of operation of the societies.

4.6           According to the area of operation

4.7            According to the legal status of societies

4.8            According to the liability of the members on liquidation of the societies.

4.9            According to the level of integration or the functional link between the members enterprises or households and the co-operative enterprises.

4.10    According to the degree of autonomy

4.11    According to the sex of members

4.12    According to the envisaged duration of the societies

4.13    According to the size of the societies

4.14    According to the functional state of the societies

4.15    According to the nature of goods produce

2.5       Structure of co-operative societies

5.1       Primary Co-operative Societies

5.2       Secondary co-operative societies

5.3       Tertiary co-operative societies

5.4       Co-operative management structure

5.5       Tools of control

2.6       Principle of co-operation

2.7       Motives for joining or forming co-operatives

7.1        Economic motives

7.2        Sociological/Emotional motives

7.3        External Pressure

2.8       Factors which influence the formation of co-operative

2.9       Ten steps of organizing a viable co-operative societies


3.0            Research methods and procedures

3.1    Research Design

3.2       Sampling

3.3       Description of the Research Instrument

3.4       Method of Communication of the Research

3.5       Field work


4.0            Data presentation and Analysis

4.1    Introduction

4.2      Data presentation


5.1      Summary

5.2      Finding

5.3      Conclusion

5.4      Recommendation

5.5      Reference






This is a discernible pattern of co-operative development in African and Asian Countries which were former colonies of Europe Nigeria is no exception.  During the colonial days the seed of co-operative was sown but it could only grow slowly. At this points, co-operative were restricted to serve only the purposes of the paymaster (the white man).  Co-operatives then were not allowed to grow or expand into the hinter lands.

        In Nigeria, the first hint on co-operative emergence occurred during the first World War.  This co-operative which happended to be a consumer co-operative was, modeled the Rochdala of England home of the colonialist.  These early co-operative societies existed to ratio out goods, which were very scared during the World War and died a natural death sown after the World War.

        Therefore, in 1926, the then colonial Agricultural ministry began organizing cocoa formers around Abeokuta and Ibadan in Western Nigeria to market their product especially to Europe where the colonical masters needed tit for their home industries.  This was also the patterned development of co-operative in British colonies.  After this experiment, the Western region of Nigeria embraced co-operative, especially marketing types.

        The Agricultural ministry continued to maintain control and supervision over these Western co-operative societies.  Emboldened by this sequence in co-operative acceptance in the West and the attendant success of the marketing co-operatives which had translated into more raw material for parent companies in Europe, the colonial master appointed Mr, F. C. Strickland to go and understudy the success story of cocoa marketing co-operative in the western region, with a view to enacting co-operative law.  For three month December 1933 to March 1934 – Mr. Strickland carried out spot assessment.

        In this report, Mr. strickland’s report no doubt kick started the co-opeartive activities in Nigeria. On return to Nigeria the first thing he did was to recognize the cocoa farmer societies, who were already excelling in the production and marketing of the best quality cocoa.  Next was to bring these societies under the umbrella of the co-operative law.

        The co-operative societies ordinance No. 39 of 1935 was signed into law by the king of England on 3rd December, 1935 and the regulations approved into force on the 6th February, 1936 from a humble beginning in 1926, co-operative rose to an astonishing of 181 in 1944.

        In 1951 the political landscape of Nigeria changed and every nation under Nigeria was allowed to develop under regions, so co-operatives went the same way West East and North.

        A co-operative is an association of persons who have voluntary came together to achieve a common and through making equitable contribution to the capital required and accepting a fair share of risk.

        It is an undertaking in which members actively participate.  A co-operative is an owner enterprise meaning that members are at the same time the owners and the users of the goods and the facilities provided.

        In 1980, the institution of Management and Technology (IMT) multipurpose co-operative was formed.  It was registered immediately with 36 members.  Many people joint the co-operative in order to save their money and also with the aim of borrowing soft loans from the society.  The chairman of the society when it was registered was Mr. S. Eze structure laboratory

1.2            Purpose of the Study:

Co-operative Society is a dynamic and viable business set-up, it has unique ideologies that under bind the movement and distinguishes them from other form of business.

However, it should be viable in order to carry her duties and responsibility very effective and efficiently.

The purpose of the study are as follows:

i)             To create a sound form or ways or steps of organizing a viable co-operative society.

1.3           Background of the Study:

Co-operative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a joint owned and democratically controlled enterprise.


Organizing a viable co-operative societies enables the society to last long and function effectively and efficiently.  Co-operative itself started from creation.  In fact, co-operative is as old as man.  One Igbo-man has a proverb which buttress this more, “when a man is in difficulty, he seeks for help from another but when animal is, she cannot turn to another.”


In organization a viable co-operative society, there are (10) Ten steps which one must or have to follow before its/her society will be viable.

These very (10) Ten steps are short listed in the Nigerian Co-operative Society’s Decree of 1993.  By Osita Obodoechi on the Cobwebs of Co-operation, 2002, P; 2.


During the colonial days, the seed of Co-operation was sown but it could only grow slowly.  At this point, co-operative were restricted to serve only the  interest of the paymaster (the white man).  Co-operatives, then, were not allowed to grow or expand to the hinterlands.


In Nigeria, the first hint on co-operative emergency occurred during the 1st world war.  This Co-operative, which happen to be a consumer was modeled along the Rochdale of England, home of the colonialist.  This earliest co-operative society existed to reform out consumer goods which was very scarce during the world war.  Soon after the war ended, the consumer co-operative died a natural death.  It is said that there are many co-operatives in Enugu state which has encountered natural death due to one problem or the other.

Thus, any co-operative society that is viable will not experience natural death.  But can only shake not death.  This problem might be due to lack of adequate management, fraud, lack of training, lack of truthfulness (uncelleurity), not following the appropriate steps, etc.

However, co-operatives ought to be viable mother to carry-out her obligation effectively and efficiently.

1.5     Research Question.

i.             Who is a co-operator?

ii.            What is co-operative?

iii.          Classification of Co-operatives.

iv.          Structures of Co-operatives.

v.           Motives for joining Co-operatives.

vi.          Factors which affect the formation of Co-operatives.

vii.        The viable steps in forming Co-operative societies.

1.6            Significant of Study

This project work enables the society to know that viable co-operatives will help to improve the economic activities of the country or society.  This research work will help equally the federal government to improve the societies, since it is the aim of the federal government to register co-operative societies.


By so doing, other unviable co-operative will benefit from it. Viability will benefit of co-operative is an indispensable element/feature in co-operative development which should not be under rated.

The Ten (10) steps stipulates the best way for any co-operative  to be viable as long as she wants to be.


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