Importance of Cooperative Societies in Nigeria

Cooperative societies play important roles in Nigeria in several ways. As a group of like-minded people, cooperative societies are structured to effectively tackle common problems of their members, as well as those of the society. From members of cooperative societies being empowered to advocating for the interest of the society on certain issues, the importance of cooperative societies cannot be overemphasized. In this article, you will learn how important cooperative societies are in Nigeria.

Importance of Cooperative Societies in Nigeria

The importance of Cooperative societies in Nigeria will be discussed below:

  • Cooperative Societies Help to Fight Inflation in Nigeria

In Nigeria, Cooperative societies, or “cooperatives” as they are commonly called, help to fight inflation. They bring about low prices of goods. These cooperative societies bring goods directly from the manufacturers at factory prices and then sell them to the members at a reasonable price lower than the actual price obtained in the marketplace.

Cooperative societies sell the goods gotten from the manufacturers at a stable and controlled price. They also control the number of goods they sell at a time. By so doing, they make these goods readily available to the members of the cooperative society at a reduced price thereby making the members be able to afford them and also obtain them. This act drastically helps to fight inflation in Nigeria.

  • Cooperative Societies Help to improve Standard of Living

One of the importance of cooperative societies in Nigeria is that it helps to improve the standard of living of citizens. It helps in reducing poverty. Cooperative societies reduce poverty by improving the economic and social lives of their members and employees. They provide funds to members in dire need. When the members sell the goods bought from the cooperative society, they tend to make a profit. This profit they get helps in the betterment of their lives. They improve the overall living conditions of their members as well as their employees.

  • Cooperative Societies Provide Employment

In Nigeria, many cooperative societies serve as an employment generation platform for their members. They create job opportunities by providing their members with resources to create their own businesses. They also enable their members to partake in production as well as profit sharing. Cooperative societies also provide means by which the members may get directly involved in the production and distribution of goods and services. By so doing, cooperative societies provide employment.

They provide young people present within their terrain of operation with either long-term or short-term employment. Also, students on vacation get the opportunity to be employed on a contract basis. This in turn helps in reducing the unemployment rate in Nigeria.

  • Cooperative Societies Provide Low-Interest Loans

In as much as loans are accessible in Nigeria today, cooperative societies make them more accessible. Getting a loan from other financial institutions such as banks could be more tedious with the need for collateral and all those paper works which make the whole process longer than necessary. Cooperative societies on the other hand provide relatively low-interest rate loans to members with other members standing as guarantors. They provide loans to members either in cash or in goods form. This in turn also helps to improve the welfare of the citizens.

  • Cooperative Societies Enhances Social and National Economic Development

In this regard, cooperative societies promote citizens’ participation and stimulate a more unbiased distribution of the dividends of globalization. Cooperatives further contribute to sustainable human development. They also help in fighting4 social exclusion. By so doing, cooperative societies serve as a major tool in national and social development.

  • Cooperative Societies Create Food Security

Agricultural cooperative societies enable farmers to procure higher returns. They support their members by providing training, loans and aid. The members necessarily won’t have to look to foreign organizations in order to expand. These cooperative societies see to it that even poor communities with little resources get the needed resources thereby producing massive amounts of produce and thus maximizing profits. This in turn creates food security for the nation at large.

  • Cooperative Societies Promote Gender Equality

With open membership available to all gender, which is one of the principles of cooperative societies, cooperative societies promote gender equality. They give women the platform to pursue their dreams. When women become members of cooperative societies, they earn higher and also get involved in innovative labor activities. They also improve the participation and empowerment within the local community. Currently, women make up a great percentage of the membership of cooperative societies. Cooperative societies as well as the government advocate for women’s participation in the leadership of the organizations thereby promoting gender equality.

  • Cooperative Societies Build Local Expertise

Cooperative societies help to build local expertise in the community as they are run by the people of the community. The indigenes locally provide the needed services as well as circulate money locally and even contribute to the growth of the community.

  • Cooperative Societies Create Unity

One of the importance of cooperative societies in Nigeria is that they create unity. Members of the cooperative societies work together with one mind irrespective of social class all for the betterment of the country. It unites different people from all works of life who have one goal.

  • Cooperative Societies Reduces Wealth Inequality

One of the many importance of cooperative societies is that it helps in reducing inequality of wealth. They see to it that capitalism which creates wealth inequality is reduced thereby enabling equal distribution of wealth.

  • Cooperative Societies Provide Training Programs

Cooperative societies provide training programs for inexperienced and untrained members by organizing workshops, seminars, and courses. In these training programs, the members are taught a variety of skills, such as ICT training, baking, furniture making, catering, sewing, make-up, website design, event decorations, repairs, hair styling, creative design, and so on.

  • Cooperative societies answer community needs.

They provide the basic infrastructure that large organizations fail to provide. They also supply food and basic resources in rural areas. The proceeds from the business transactions of these cooperative societies also circulate within the rural communities.

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