Business (Entrepreneurship)

Importance Of Cooperative Societies In Nigeria

Importance Of Cooperative Societies In Nigeria. Get Informed On How Important Cooperative Societies Are. Check This Post. 

Importance Of Cooperative Societies

Do you wish to know the advantages of cooperative societies in a Nigeria? Do you want to know the numerous benefits of cooperative society? Then this article is for you, as we will be giving you the importance of cooperative societies in the country Nigeria.

One crucial thing you should know is that so many people choose to join a cooperative for different reasons. The society is structured to effectively tackle common problems of their members, as well as those of the society at large. Most reasons of people who decide to join a cooperative revolve around resolving issues, both from looking for better value for money and then to seeking a group of like-minded people to help out with certain demands.

What Is A Cooperative Society?

A Cooperative Society is a voluntary association of individuals or legal persons united by common bond, who have come together to pursue their socio-economic goals for their own benefits with high regards to non-members as their neighbors.

What Are The Importance Of Cooperative Society?

  1. They Foster Competition
  2. Helps Tackle Inflation
  3. Teaching Morality
  4. Improvement Of Skills
  5. Helps In Savings
  6. Always Assist In Improving Quality Of Life
  7. Helps Provide Employment
  8. Eradicates Poverty
  9. Helps Promote Social And Economic  Development On A National Scale
  10. Food Security
  11. Promotes Gender Equality

12.Encourages Joint Entrepreneurship

  1. Helps Provide Low-interest Loans
  2. Helps Local Expertise
  3. Helps In Creating Unity
  4. Helps Reduce Wealth Inequality’
  5. Provides Training Programs
  6. Solves Community Needs
  7. Improves Societies Standard Of Living
  8. Advocates Interest Of The Society

Importance Of Cooperative Societies In Nigeria

1. They Foster Competition

This is the first on our list as cooperatives helps businesses in challenging with big national stores, these cooperatives also benefit their members because of pricing adjustments, this makes forces rival organizations to compete effectively.

Read Also:Types Of Cooperative Society In Nigeria

2. Helps Tackle Inflation

The first aim of Cooperatives is the fight against inflation in Nigeria. Cooperatives make sure they eradicate and tackle inflation in the country. This is another importance of cooperation.

3. Teaching Morality

One can learn how to live morally in both their personal and professional lives by joining a cooperative society.

4. Improvement Of Skills

Cooperative society, because of the urgent push to improving citizens skills, they might be the nation’s most competent and effective labor force.

5. Helps In Savings

They also help in cultivating saving habits and this also has a positive effect on the country as a whole.

6. Always Assist In Improving Quality Of Life

Cooperative societies assist in improving quality of life and raise citizens standard of living. They help members and workers have better social and economic lives, which helps fight off poverty and improves quality of life.

7. Helps Provide Employment

So many cooperative organizations in Nigeria offer their members a platform to look out for quality jobs.

8. Eradicates Poverty

Of course another importance of cooperative society is that it brings food and shelter to the masses and to people in dire needs.

9. Helps Promote Social And Economic Development On A National Scale

Cooperatives contribute to the sustainable development of people in the society. They also support efforts to fight off social isolation, hereby playing significant roles in both national and social development as a result.

10. Food Security

With the help of cooperatives, members who are farmers are assisted on finances and even training, as the members won’t need to be looking out for international organizations. Cooperatives in Nigeria ensure that even the most underprivileged with limited resources have access to required demands, and this pave enormous way for food security.

Read Also: How to Start Mini Importation Business in Nigeria – Full Guide

11. Promotes Gender Equality

Gender Equality is promoted by cooperative societies, they support equal level of speech and they provide platforms for women to pursue their life goals and targets. In fact, currently cooperatives support women having leadership duties, as they have lots of women in positions of leadership.

12. Encourages Joint Entrepreneurship

Cooperative supports a significant culture of shared production, decision making, and problem solving. You should know that most enterprises eventually fall, while very few cooperatives do fail.

13. Helps Provide Low-interest Loans

We all know how loans are accessible in Nigeria today, cooperative society ensures that they are more accessible. Truth is, getting a loan from the bank or other financial institutions involves you providing a sufficient collateral and paper works involved too, while cooperative societies on the other hand helps provide low-interest rate loans to members with other members there as guarantors.

14. Helps Local Expertise

With the help of cooperative society, the necessary funds are circulated and this contributes to the expansion of the community.

15. Helps In Creating Unity

 Cooperative society also helps foster unity, regardless of social class, status and the rest.

16. Helps Reduce Wealth Inequality’

Cooperative society helps to reduce unequal wealth distribution.They work so hard to reduce and take away capitalism, which makes it possible for wealth to be distributed equally.

17. Provides Training Programs

Training programs are provided by cooperative societies, they organize and conduct workshops, seminars and courses to provide training programs for both new and untrained members. Those who participate in these training programs learn a range of skills and talents, training like  aking, furniture making, tailoring & sewing, website design and so on.

18. Solves Community Needs

Next on our list is how the cooperative helps in solving community needs. Due to the lack of provision of basic infrastructure by the large organization, cooperative has now stepped up to provide these basic infrastructures, they also provide food and basic resources in grown and developed communities.

19. Improves Societies Standard Of Living

The importance of cooperative society cannot be overemphasized. Another importance of the cooperative society is that it helps in improving the standard of living in the society, that is of the citizens too. They provide funds to members in urgent needs. Members of the can buy products from the cooperatives and sell them on profits, this profit helps in the betterment of their lives.

Read Also: Top 30 Daily Profitable Business In Nigeria Currently

20. Advocates Interest Of The Society

This is the last on our list, with the help of cooperatives, the members of the society are empowered to advocate the interest of the society on certain issues.

Frequently Asked Questions

1. What Are The Important Goals Of A Cooperative?

The purpose of a cooperative is to realize the economic, cultural and social needs of the organization’s members and its surrounding community.

2. What Are The Impact Of Cooperative?

Cooperatives can be local and regional anchors, promoting economic growth through stable jobs, high industry standards, consistent services and economic multiplier effects through increased community investment, local jobs and local procurement.

3. What Are The 2 Objectives Of Coop?

Cooperatives are organized to : 1. Improve bargaining power, 2. Reduce costs; 3. Obtain products or services otherwise unavailable.

4. When Did Cooperative Started In Nigeria?

The modern cooperative movement in Nigeria started when C. F. Strickland was appointed in 1933 to look into the possibility of introducing cooperative societies into the country.

5. How Many Cooperatives Are In Nigeria?

Over 300,000 cooperative societies today.

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