The Role Of Co-operative Societies In Rural Development (a Case Study Of Nsukka Local Government Area).

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the  role of co-operative societies in rural development

(a case study of Nsukka local government AREA).



This research work was systematically carried out especially to ferret out the roles of co-operatives societies in rural development a case study of Nsukka Local government area

            In the first chapter, the research did the introduction by having overview of what co-operators should be in order to actualize their targeted goals and objectives. The chapter also highlights the following, the objectives, significance those who are likely to benefits from the study, there was a very good hypothesis tentative guess and definitions of important terminology used in the context.

            Moreso, in chapter two, the  writer reviewed related literature –various authorities who has written  books presented seminar papers and other library materials.

            Finally, the conclusion was properly conducted to find out the real hypothesis.


Title page

Approval page



Table of Content

List of Table


Chapter One

1.0            Introduction

1.1                                    Background of the study

1.2                                    Statement of the problem

1.3                                    Objective of the study

1.4                                    Research Hypothesis

1.5                                    Significance of the study

1.6                                    Scope of the study

1.7                                    Limitation of the study

1.8                                    Definition of the term

Chapter Two

2.0            Review of related literature

2.1               The contribution of co-operative societies towards the increase on capital development.

2.2         The important of finance in co-operative business.

2.3         The contribution of co-operative societies towards the output growth

2.4         Various source of finance for the co-operative societies

2.5         The problems of co-operative

Chapter Three

3.0            Research Design and Methodology

3.1            Sources  of data

3.2         Secondary data

3.3         Primary data

3.4         Instrumentation

3.5         Sample size

3.6         Sample procedure

3.7         Return of completed questionnaires

3.8         Method of analysis.


Chapter Four

4.0            Summary of findings, Conclusion, Recommendations

4.1            Summary of Findings

4.2            Conclusion

4.3            Recommendation





1.1                        BACKGROUND OF THE STUDY

Co-operative societies as a form or type of business organization comes about when people with common, interest unit themselves into a group, financial and controlled by them for the purpose of achieving their goals. We believe from many others, that co-operative societies started in Nigeria in the early 20th Century. It should be noted that the life parterns of various communities in the country showed some traits of co-operative societies before the advent of modern co-operative societies. This is understandably so because most communities in Nigeria and Africa in general had ( and other still have) series of association youth association etc.

These organizations, communal farming through collective efforts, construction of  rural roads extension of credit facilities to members etc, many of the modern co-operative societies have the above objectives.

According to Chief Obukada Achoja, from (MPC) Bulleting  review (169:p.49) said that co-operative societies started Ethiopia last  local  government area of Delta state, which was created from Ethiopia local government area of Bendel state of them Midwestern Region of Nigeria, in 1968 with the formation of multipurpose co-operative societies (M.P.C.S.) The late emergence of co-operative societies in Ethiopia last and other parts of the mid west region was as a result of the administrative  policy adopted by the former colonial masters. The policy was such that did not permit undue influence in the activities of the mid-west region.

The recent increase in the formation of new co-operative society in the country is a  clear indication that many people and institutions alike have found co-operative societies of a useful tool in the furthering different interests. In the fourth National Development toward the growth and development of the  co-operative sector in the country.

Towards this end government policy would be aimed at:-

i.            Strengthening the movemnet in genral through assistance in cash and kind, particularly in the area of provision of storage facilities and shops.

ii.          Increasing the number and membership of  co-operative societies.

iii.        Relying increasing on the societies for the distribution of essential consumer goods.

iv.         Strengthening the manpower support services traditionally available to the co-operative societies.

(Federal Ministry of National Planning, 1981).

Samuel O Adeyeye – (1977,p.012) after a  through study of co-operative movement in Nigeria recommended the establishment of co-operative societies in Nigeria in view of the economic benefits they could involve

Ihomoju (1988, p75) also claimed that the  establishment of co-operative society could enhance the standard of living of  the masses, contribute to the education of  member and facilitate the marketing activities of farmers. Also, co-operative movement to be in the best position to stimulate food production through extension of credits to the co-operatives as well as the financing of large scale food production scheme in the rural areas. (S.O Adeyeye 1977  p. 4) Therefore there is the need to find out whether co-operative societies in Ethiopia  last local government area are capable of fostering similar societies rural development. 

1.2                        STATEMENT OF THE PROBLEM.

The co-operative society cannot be disputed  infact any organization without co-operative performing any role is as good as dead.

            Upon all the incentive given to societies by the government to see that it processes, yet a lot of problems still exist and it is those  problem that this researcher have in mind to identify and find solution to them, such problems are, lack of effective management, illiteracy, unco-operative attitude of members. Lack of adequate finance which have system been identified among the problems weakling the progress of co-operative societies. This investigation is therefore geared towards solving these problems and make the impact of these co-operative felt in the society.

            In the fourth national development plan of 1981-1985 the total sum of N184 22 million naira was embarked for the running of co-operative in Nigeria. Government has also made various source of finance within the easy reach of many societies through it agricultural loans scheme, co-operative bank etc. Yet there exists many problems.

            In the light of this, the researcher looked into identifying means of improving the roles of those societies in the rural development area of the operation.

1.3                        OBJECTIVE OF THE STUDY

The objective of the study are to appraise the role of the co-operative economics in the society.

            The study is aimed at finding out the source of fund for co-operative societies in the area, the economics achievements recorded, their problems and strategies for solving them.

1.4                        RESEARCH HYPOTHESIS

The research hypothesis for  the study were made up of the following:-

1 H2  The co-operative societies contribute much towards the increase on capital development.

2. H2  What are the important of finance in co-operative business.

3. H3  The co-operative societies contribute much towards the output growth.

4. H4  What are the various source of finance for the co-operative societies in Nsukka Local Government Area.

5. H5. The problem confronting co-operative societies in Nsukka Local Government Area.

1.5                        SIGNIFICANCE OF THE STUDY

The significance of this study cannot in any way be over emphasized. This research work “The role of co-operative societies in rural development” The study will no doubt be of immense benefits to the co-operatives societies in Nsukka local government area.

This is because attention shall be focused on the various problems effecting their effective performance.

              Secondly, the study will bring to limit the hidden importance of co-operative societies, thus, generating a greater degree of government support.





1.6                        SCOPE OF STUDY

There are many views of what co-operatives  societies are based on different dialogical stand points. This is the more reason. Why one finds co-operative societies structural along the part of capitalist orientation are not true co-operatives.

A contrary view is shared by writers and co-operatives from capitalist countries about co-operative in communist countries.

            In the light of the above Roy (1969 p.22) identified three school of co-operative thought. These are the socialist co-operative school. Co-operative common wealth school and competitive yard stick school. The  socialist communist school believed co-operative are media through which a socialist or communist state will realize its goals therefore the  final goal of societies structured in line with this thought it is socialism. The second school of thought, the co-operative societies as a dominant type of business organization. This might include partnership, sole-proprietorship and co-operations.

            The competitive yardstick school view co-operative  as a means of checking the evils obtained in the capitalist system. This school (1960 p.25) went on to say will not only guard against the evils of the system but will also connect the short coming of the system to make them more functions.   

1.7                        LIMITATION OF STUDY

This study took a critical look at the role co-operative economics played in rural areas.

This  research work is limited to Nsukka local government development council. The researcher was not able to cover enough ground, concerning this study due to lack of fund and time. The researcher would have looked into the government’s documents in the achieves and other areas, but these constraints were as a result a financial handicap and time to conduct such study.



1.8                        DEFINITION OF TERMS

The following terms are defined as they are used in the study.

(a)    Role:

It is a function or position that has or is expected to have in a society or in relationship.

(b)    Co-operative Societies

A co-operative society has been defined as an association of persons usually of limited means, who have voluntarily joined together to solve their economic and social problems through the formation of democratically controlled business organization, making equitable contribution to the capital required and accepting a fair share of the risks and benefits of the undertaking.




(c)    Rural Development

It is a process whereby concerted efforts are made in order to facilitate significant increase in rural resource productivity with the overall objectives of enhancing much incomes and increasing employment opportunities in rural communities.



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