Co-operative Development And Government (a Case Study Of Oji River L.g.a. Enugu State 1999 – 2004)

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1999 – 2004)



The study is to examine the project titled “Co-operative Development and Government of Enugu State (A Case Study of Oji River Local Government Area).

Co-operative development is not the same in all countries as the researcher wants to find out the extent government of Enugu State is involved in co-operative development.  The researcher further divided this study into five chapters.  The background of the study, the statement of problem, scope and limitation of the study, objective of the study, research questions etc. were treated.

In chapter two, literature review on past related works is discussed.

In chapter three, the research is designed and methodology was discussed including the population of the study, sample size, sampling techniques, method of data collection etc.

In chapter four, presentation of analysis and interpretation of data were discussed.

Finally, chapter five deals with summary of the findings;

1.                 Majority of co-operative societies members in Oji River were female about 78% of the entire population.

2.                 Most of the respondents are not well educated. Majority attended primary education which constituted a serious set back for effective management.

3.                 The result of the survey, indicated that most of the co-operators in Oji River are of old age.

4.                 Loan statistics presented shows a fair recovery of loan issued to co-operative societies (refers to table 4 in chapter 4).

5.                 The poor management of co-operative societies in Oji River is as a result of dishonesty on the part of the management committee) such as poor record keeping.

Recommendation; unless co-operative societies in Oji River Local Government introduce incentives to attract the male sex. If not, it will be difficult to have a meaningful change in socio-economics and cost of having people.

Capital available for co-operative societies is not enough to encourage profitable investment.

Conclusion:  It is clear that co-operative societies in Oji river was not been wildly equipped and it is not enough to make impact on citizens of the area.




Title page

Approval page






1.0            Introduction

1.1     Background of the study

1.2     Statement of the study

1.3     Objective of the study

1.4     Research questions.



2.0            Literature Review

2.1     Meaning and Definitions of co-operative societies

2.2     Development of Co-operative in Nigeria

2.3     Role of Government in Co-operative Development

2.4     Government Effort and Achievement in Oji River Divisional Co-operative Council

2.5     Type of Co-operative and their roles on development



3.0            Research Methodology

3.1     Population of the study

3.2     Sample and Sample size

3.3     Sampling Techniques

3.4     Method of data collection

3.5     Description of data collection instrument



4.0            Result and Discussion

4.1     Presentation and Analysis

4.2     Sex Respondents

4.3     Age Respondents

4.4     Predominant type of co-operative societies in Oji River

4.5     Source of income for co-operative societies in Oji River

4.6     Loan Statistics of co-operative societies

4.7     Educational Status of Respondent

4.8     Reasons for joining co-operative societies

4.9     Major source of members

4.10   Benefit Respondents Derived from co-operative societies

4.11   Problems facing co-operative societies in Oji River

4.12   Suggested solution to identified problems



5.0            Summary and conclusion

5.1     Summary of the finding

5.2     Conclusion

5.3     Recommendation


          Appendix I

          Appendix II




The major attraction of co-operative organization especially in the developing area is – it’s potentials for social change and improvement in the standard of living of people or well being of the populace for example many government has devoted numerous resources for the encouragement and improvement of co-operative societies in rural and urban area to eliminate/ eradicate poverty among the average citizen of the country.

Sometimes, the government involvement is observed to the extent of thrift of co-operators from self-reliance of the organization, instead of depending on government.  Consequently, the objective of the movement bring change in the economic development which Oji River Local Government cannot afford to ignore than to become one of them.  The members of the movement were benefiting through the provision of the services, the instrument of social change and transformation which will benefit the entire populace.  Thus, the co-operative society has the ability or responsibility over social economic development of the entire economy.

Notwithstanding, if such potentials are properly harnessed, the impact of this association will contribute immensely to the economic development of Oji River Local Government Area and as well as co-operative development of the area, this is the major focus of this research.



The study on this regard “Co-operative Development and Government in Oji River Local Government” with the range of 1999 – 2004.  In the course of this study, the author Michael Kenechukwu is trying to review the excess, other words, the effect and contribution of government to co-operative of the area, Oji River divisional co-operative council.

All things being equal, co-operative is as old as time immemorial to the extent that in all engagement of human being in the world co-operative exist, think of families you cannot have an organized family without co-operation among themselves, war cannot be fought without co-operation among the group; therefore, co-operative exist either informal or informal or formal organizations.  But modern co-operative societies started in the year 1844 in Great Britain, England by Rochdale Equitable Pioneers after the pitfall of the earlier/pre-Rochdales in 1830’s co-operative societies as a result of negative effect of their practices and industrial revolution which rendered many people jobless because machines were introduced to replace human labour such as farmland were bought only by the rich and noblemen therefore, only the rich people could afford farming practices especially on a large scale.  There was the room for subsistence farmer.

The prevailing unemployment led to widespread of poverty and destitution of common man in the society, had no house to live and had no cloth to wear because everything was owned by the capitalist.  The suffering was terrible that people had to move from place to place, jumping from one job to another, from one trade to another before they could feed their family.  However, the rich were becoming richer while the poor becoming poorer.  The bad maltreatment of the masses by the capitalist lead to intervention of people that matters a lot as far as co-operative is concerned known as Robert Owen and Dr. Williams King and Rochdale Equitable Pioneers in 1844.  They are the father of modern co-operative societies as well as the touch bearer of co-operative which passes the touch of co-operative from one generation to another, their mission in co-operative was to eliminate/reduce corrupt practices and suffering of the masses in their untold condition, nevertheless, the co-operative development in Oji River divisional co-operative council started in the year 1976 when co-operative ministry implement their policy of taking over the formal eastern Nigeria co-operative training institution, Enugu, which still remain Federal Co-operative College located at Awgu now re-located at Oji River Local Government Area, Enugu State.  But before the above mentioned institution for co-operative, there are many traditional societies in their communities, towns, which had no legal backing or legal recognition.  These societies include viz:

·        Egbebele Ugo Women Organisation

·        Onyemalu Nwanne ya Organization

·        Oga-adimma Organization

·        Oganiru Age Grade Organisation

Most of these organizations mentioned above fold-up because they have no legal recognition.  Notwithstanding, following the establishment of the three (3) Federal Co-operative Colleges in Nigeria located as follows:

(a)     Federal Co-operative College, Ibadan

(b)     Federal Co-operative College, Kaduna

(c)      Federal Co-operative College, Oji River, Enugu State, the aim of these established institutions by the Federal Government in collaboration with ministry of co-operative is to produce position co-operative experts/co-operative extension officers that will help in disseminating information on co-operative matters, moreso, impacting co-operative ideologies, principles, practices, culture and norms in all nooks and corners of the rural areas.  The idea of this sector brought about full knowledge of co-operative societies in Oji River L.G.A..  They started with six (6) autonomous communities in that area stated as follows:

1.       Oganiru Achi Farmer Multi-purpose Co-operative Society (OAFMCS) Limited.

2.       Akpugoeze Farmer Multipurpose Co-operative Society (A.F.M.C.S.) Ltd.

3.       Igwebuike Farmers Multi-purpose Co-operative Society (IFMCS) Ltd, Inyi.

4.       Ugwuoba Women Multipurpose Co-operative Society (UWMCS) Ltd.

5.       Awlaw Farmers Multipurpose Co-operative Society (AFMCS) Ltd.

6.       Ekemma Women Multipurpose Co-operative Society (EWMCS) Ltd.

However, the above co-operative societies in Oji River divisional co-operative council excel in their business due to hard working and painstaking effort among the members, almost all of them were successful in their respective business they work relentlessly with co-operative spirit.

The record of their achievement according to the data available in the course of this study shows that there is increase in type of co-operative societies, increase in the membership strength and increase in business of co-operative societies of the area.  They had the record of an increase in the different brand of co-operative societies right from the 1998 – 2004.  The societies in that area increase from six (6) to hundred and sixty-five (165) that call for study on this regard.

Other salient factors responsible for poor co-operative development in Oji River divisional co-operative council were stated as follows below:

1.       Lack of awareness:  The awareness about co-operative is not enough, most of the people in some communities of Oji River Local Government due to poor awareness campaign on mass media such as television, radio, co-operative journal, newspapers and magazines etc.

The co-operative experts and extension agents has a lot to do in dissemination of information about co-operative societies, to lecture than on the meaning of co-operative societies, the principles and practices of co-operative, norms and values as well as the benefit they are going to derive after joining co-operative societies (co-operative effect).

2.       Lack of Trust Among Some Co-operators:  Most of co-operators failed to fulfill their promises to some communities in that area, moreso, officers discriminate each other in terms of differences in communities or towns, race, tribe.  Under this arrangement, it discourages non-members, staff and government in participating in co-operative activities.  Thereby decrease the rate of co-operative development of the area.

3.       Abandonment of Co-operative Projects:  Most of co-operative project were abandoned and lack of revisitation of projects as a result of mismanagement of resources by some staff.  In Akpugoeze for instance, co-operative societies in that area abandoned their farms and oil mail at Nkwere-Inyi, Oji River L.G.A. and other cumulated misconducts that are responsible for poor participation of non-members and government in co-operative development.

4.       Lack of unity among the clans:  The co-operative development in Oji River always sustain misinterpretation and conflict with the communities thereby hindered the effort of co-operative officials of the area.

5.       Poor Support from State Government:  It is observed that co-operative societies existing within Oji River divisional co-operative council, otherwise their affiliates did not receive enough support from the state government.  Such support like fertilizers, tractors, pesticides, fungicides, herbicides etc and other incentives like grants, and subsidies.



The study on this regard, co-operative development and government was designed to access and ascertain co-operative societies existing in some autonomous communities of Oji River Local Government Area.  Such communities like Achi, Inyinese, Omeire, Awlaw, Akpugoeze, Ugwuoba autonomous communities all in Oji River, Enugu.

The research work also covered the whole parts of Oji River Local Government area to determine the effectiveness of co-operative and government in development of co-operative societies in Oji River from 1999 – 2004.  The study also extend to some institutions mentioned but few co-operative unit/ministries, Federal Co-operative College, Oji River, Institution of Management and Technology (IMT), Enugu and at Enugu State University of Science and Technology (ESUTECH) to call forth some useful ideas.



As the research on this topic focus on co-operative development, there some rural sector of the Local Government.  The area have the deficiency of most basic infrastructural facilities like pipe borne water, market, such areas in Oji River like Inyinese, Awlaw, Achi and Akpugoeze.  But the deficiency of some parts of the Local Government is due to non-challant attitude of the personalities of these area and neglect of the inhabitant.

Oji River Local Government does not have good motorable road especially road that lead to Achi, Inyinese, Awlaw and Akpugoeze which lead to rapid increase and exorbitant price in the transportation fees and other difficulties as a result of these problems.  It deserted people to move from rural area to urban area in search for better job opportunities and some other pleasurable things of life in urban areas.

Above all, poor financing of co-operative business enterprise is the most emphatic factor responsible for the pitfall of the co-operative development in Oji River Local Government.  Almost all co-operative societies in that area depend mainly on internal financing co-operative societies both Registered and unregistered co-operative societies.  The registered co-operative societies were eighty (80) while unregistered societies were eighty-five (85) despite proceeding achievement of these societies, there are some notable set-back facing both registered and unregistered co-operative societies.  These problems were ranged from office accommodation for co-operative societies in the local government.  Secondly, there was no proper structure for co-operative societies in the local government.  Thirdly, for implementation  of most government policies and programme.

Finally, there had been poor provision of farming facilities for co-operative societies in Oji River Local Government Area in terms of grants, subsidies, loan and other incentives.


In Oji River divisional co-operative council of Enugu State, about  70% of the total population deeply engaged on peasant/subsistence farming and small scale business enterprise.  It is only about less than 30% of the population engaged in white cola job/office work, therefore, for farmers to thrive in Oji River Local Government Area according to the experiment of fact conducted in Oji River divisional council within the range of 1999 – 2004 there is a great need for them to organize themselves as a group; “co-operative society, to increase the productivity level, since, co-operative stand on a better chance to mechanize agriculture.  Therefore, farmers should do all they can, to organize themselves as co-operative society to enable them progress in their agricultural operations.  Such benefit is like getting loan easily from any financial institution at a cheaper rate of interest without unnecessary protocol such as collateral security with the aid of Certificate of Registration.  They will obtain loan easily especially, on co-operative banks, agricultural banks, Nigeria Agricultural Co-operative and Rural Development Bank (NACRDB) moreso, as a group they can get inputs like fertilizers, tractors, pesticides, and other incentives like grants, subsidies, etc poor participation of government in co-operative development like share capital, entrance fees of members, deposit from members, donations from cheerful giver, reserve etc, which is very bad for co-operative society who wants to make impact on co-operative business and societies who want to grow.



The study on this regard has its significance which focus on development of co-operative societies in Oji River Local Government, the degree of Government participation in co-operative matters, with special reference to Oji River Divisional Co-operative Council in terms of management of co-operative societies under their control.  The sole aim of this studies is to review the condition of co-operative development and to provide materials for the successor as well as the beneficiaries (undergraduates students) of Co-operative Economics and Management of Institute of Management and Technology, Enugu in their academic pursuit.

It will also serve as a policy guide in the local government depending on those who made their carrier on co-operative field, and for those who have interest on co-operative thought.  Nevertheless, Oji River Local Government has its potential resources for co-operative sector and non-co-operative sector of economy, such as:

(a)     Police College:  The Nigeria Police College was established for training of forces on disciplinary actions to maintain peace and order in Oji River and nation at large.

(b)     Federal School of Health and Technology:  The School of Health was instituted in Oji River Local Government for training of nurses and it is equivalent to combat diseases and sickness in Oji River.

(c)      Federal Co-operative College:  One among the three federal co-operative colleges in Nigeria through the joint effort of Government and Ministry of Co-operative experts in all co-operative professionals especially, on technical issues, for them to help farmers in the rural areas of Oji River. 

(d)     National Electric Power Authority:  The electrical power authority was established in Oji River to take the responsibility of electricity supply in sundries of Oji River Government.

(e)      Natural Pure Water:  This was known as (water worse).  It is naturally pure and minor potentials which serve as yardstick to the neighbouring Local Government and state at large.  However, co-operative is very important especially during the period of state and federal government wants to use co-operative as a spring board in implementation of their policies and programme at the grassroot level.



The following questions were designed for my investigation and inquiry in Oji River divisional co-operative council states as follows:

1.                 Are there existing co-operative societies in the local government area viable enough to contribute to co-operative development?

2.                 Are there enough co-operative societies in the local government?

3.                 What are the factors that have hindered the effective mobilization of co-operative societies in order to enhance co-operative development in Oji River?

4.                 What service members drive from the existing societies (co-operative effect).

5.                 On what aspect has co-operative societies have intervened on economic conflict of Oji River Local Government to enhance development at the grassroot level.

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Co-operative Development And Government