A cooperative association is a voluntary organization of persons with a common interest formed and operated along democratic lines for the purpose of supplying services at cost to its member who contribute both capital and business.

This study examined the roles and contributions of cooperative societies in owerri municipal council of Imo state Nigeria.

Many schools of thought have prescribed various panaceas for ills of rural life and living. Protagonists of industrialization tend to overemphasis industrial possibilities of rural development while advocate of back to land see modernized agriculture with efficient utilization resources such as land, labour, fisheries, forestry, livestock and material as well as allied processing operations as possessing more promise of a faster rate of development of the rural economy.

Cooperative and rural economics are virtually intertwined and will involve a close study and analysis of the relevant factors in the development, expansion and modernization Agriculture within its rural setting as a means of stimulating efficiency as well as contributing a rightful quota to the public good.

Today, in an era when many people feel powerless to change their lives, cooperative present a strong vibrant and viable economic alternative. Cooperatives are formed to meet people’s mutual needs; they are base on the powerful idea that together a group of people can achieve goals none of them could achieve alone. For over 160 years now, cooperatives have been an efficient way for people to exert control over their economic livelihoods.

Cooperatives generally provide an economic boost to the community as well, incidentally; cooperative despite its old age is not very popular in owerri municipal council. Only recently worker cooperatives started gaining ground among working class citizens, most of who find it difficult to save part of their salaries /wages for the rainy day.

1.1 BACKGROUND OF THE STUDY

Many schools of thought have prescribed various panaceas for the ill rural life and living.

Protagonists of industrialization tends to overemphasize industrial possibilities of rural development while advocates of back to land see modernized agriculture with efficient utilization of natural resources such as land, labour, fishers, forestry ,livestock and minerals as well as allied processing operations as possessing more promise of a faster rate of development of the rural economic, there is no doubting the that combination of the prognostications of these two school of thought under the umbrella of a progressive socio-political atmosphere and stability can launch the rural land scape into self patenting and /or dynamic economic prosperity.

The problems and promise of economic development can become a nightmare and a catastrophe, if the socio political atmosphere is punctual by perennial instability, unbridled lust for power and uneconomic policies in the context of technological, ecological and financial evaluation.

Rural economy could be seen as that branch of science of statesmanship which deals with agriculture other than rural building. The definition places agriculture in the centre of economic life of rural communities and it is around this that other enterprises revolve and / or spring from agriculture could be seen as the victualing nerve centre of the land scape, which depends on the contributions of cooperative societies.

Cooperative and rural economics are virtually intertwined and will involve a close study and analysis of the relevant factors in the development, expansion and modernization of agriculture within its rural settings as a means of stimulating efficiency as well as contributing a rightful quota to the public good.

1.2 STATEMENT OF THE PROBLEM

In the most rural communities and in the urban areas the standards of living of the people are poor. In terms of not having any thing to eat or drink but relatively in terms of all year round quality and quantity. As a matter of tact the standard of living are punctuated by several aspects of poverty which vary from one rural community to another. There is acute poverty in the sense of having very little to wear and eat at certain seasons in the year. Poverty is seen in the high rates of consumption out of income and this implies how saving rates. There is a poverty in terms of poor living conditions hat improper sanitation and absolute lack of medical facilities exemplify. In terms of working capital and scale of operations poverty is expressed in and crude tools, smallness of the scale of operation, poor output that is incapable of meeting the needs of the purchasing power in rural communities.

Poverty also rears its head in terms of high infant mortality which necessitates high desire for children as of priority and is natured by the fertility of the women –folk. A more menacing aspect of poor standard of living and productivity is the impact of unproductive culture. this is usually seen in any traditional society in terms of being replete with don’ts taboos, religious –fetish beliefs, predominate the relegation of the women folk to child bearing and or wasteful socio-cultural practice e.t.c all these intensify and perpetuate the various aspects of poverty, which are in turn made worse by death of infrastructural facilities and the exploitation of rural economy for the improvement of urban communities. Could these problems be reduced by having a virile cooperative society? Low productivity could arise from the poverty of the soil and its further accentuated by low productivity of agricultural labor in terms of physical performance per man hours of work and in terms of the output return pre per man hour of work.

1.3 OBJECTIVES OF THE STUDY

The objective of the study was to investigate the likely factors which militates against cooperative societies in owerri municipal.

Most specifically, the study investigated:

1. The role of cooperative societies in the Nigerian economy and

2. The contributions of cooperative societies in the Nigerian economy.

1.4 RESEARCH QUESTIONS

The following research questions are formulated to guide the study viz.

(a) To what extent is the financial resources allocation to cooperative societies adequate?

(b) To what extent is the allocation of effectively utilized (loan management)

1.5 SIGNIFICANCE OF THE STUDY

This study is significant because it would serve as a reference material to future administrators and researchers by providing data on the management of cooperative societies in owerri municipal council of Imo state. It would help to improve financial resources allocation to different cooperative societies.

This is of immense benefit to:

(i) Owerri municipal council and Imo state Government in particular by enabling them to be aware of the roles and contributions of the cooperative societies in Nigeria.

(ii) It would improve the look of planners and administrators of cooperative societies

(iii) To students and larger societies, the findings of this would help to improve the management of cooperative societies in Nigeria.

1.6 SCOPE OF STUDY

This study was carried out in owerri municipal of Imo state. The management of financial resources allocated to cooperative societies was investigated. The extent to which these resources were utilized form the central focus of the study.

1.7 LIMITATIONS OF STUDY

This study identified the following factors that likely affected the attainment of the objectives of cooperative societies viz.

(i) Financial resources allocation

(ii) Financial resources of utilization (loan management)

(Iii) The management strategies employed by the administrators in realizing the set objectives of cooperative societies.

1.8 DIFINITION OF TERMS

For the purpose of classification the definition of some terms in this project topic is needed.

(a) COOPERATIVE- Cooperative is the coming together different individuals to solve their common problems, by undertaking and economic venture.

(b) The roles and contributions of cooperative societies in the Nigerian economy would serve as a reference material to future administrators and improve the work of planners and administrators of cooperative societies.