The Contributions Of Co-Operatives To Rural Development (A Case Study Of Orlu West L.G.A In Imo State)

Project and Seminar Material for Cooperative Economics and Management (CEM)

The Contributions Of Co-Operatives To Rural Development (A Case Study Of Orlu West L.G.A In Imo State)


This project looked into The Contributions of co-Operatives to Rural Development (A case study of Orlu West L.G.A in Imo state).

A survey was conducted on the types of cooperative societies in Orlu West Local Government Area and the management and organization of Imo cooperative Federation to obtain relevant data on the view of the respondent towards Imo cooperative federation.

The information was collected from two categories of respondents viz staff of the organization and the divisional cooperation council of Orlu West L.G.A.

The major instrument used for data collection was questionnaire. The data collected were analyzed using the percentage system of data analysis.

The study found out that the societies in the area encourages the habit of savings among members. They also sell food at low prices and produced quality goods for the area.

However, the study showed that the growth of co-operative in the area is affected by problems such as frauds, ineffective management, lack of finance and non repayment of loans among others.

Table Of Content

Preliminary Page(s)

  • Title Page
  • Approval Page
  • Dedication
  • Acknowledgement
  • Table of content

Chapter One

1.0 Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of Problems
  • 1.3 Objectives of the Study
  • 1.4 Research Questions
  • 1.5 Significance of the Study
  • 1.6 scope of the Study
  • 1.7 Limitation of the Study
  • 1.8 Definition of Terms

Chapter Two

2.0 Literature Review

  • 2.1 Introduction
  • 2.2 History of Co-operative in Nigeria
  • 2.3 Origin and Structure of Co-operative in Imo state
  • 2.4 The Origin of Imo Co-operative Federation (ICOFED)
  • 2.5 Function of ICOFED.
  • 2.6 The Contribution of Co-operative in Rural Development.
  • 2.7 Role of Co-operative in Rural Development
  • 2.8 Problems of Co-operatives in Rural Development.
  • 2.9 Solution to the Problems.

Chapter Three

3.0 Research Design and Methodology

  • 3.1 Introduction
  • 3.2 Research Design
  • 3.3 Population of Study and Sample Size
  • 3.4 Sampling Technique
  • 3.5 Source of Data
  • 3.6 Method of Data Analysis
  • 3.7 Validation and Reliability of Measuring.

Chapter Four

4.0 Data Presentation and Analysis

  • 4.1 Introduction of Data
  • 4.2 Presentation of Data
  • 4.3 Analysis of Data
  • 4.4 Design/ Interpretation of Result

Chapter Five

5.0 Summary of Findings

  • 5.1 Recommendations
  • 5.2 Conclusions
  • 5.3 Remarks of Findings
  • Appendix
  • Questionnaire
  • Bibliography.

Chapter One

1.0 Introduction

Co-operatives in Nigeria have their origin in the efforts of the colonial government that sought to create institutions for implementing policies. This use of cooperatives continued at independence, when the new government also embraced cooperatives as mechanisms for implementing policies and development plans.
The independent government viewed co-operative not as economic entities, but as institutions for producing substance needs of its members.

The subjected cooperative members to state control, which hampered the development of cooperatives as economic enterprises that meet members needs and interests.

1.1 Background Of The Study

Cooperative societies as a form or type of business organization come into existence when people with common interest, joined themselves into a group financial and controlled by them for the purpose of achieving their goals. The researcher believed from many authors that cooperative societies started in Nigeria in the early 20th century. It should be noted that life patterns of various communities in the century showed some traits of cooperative societies.

Most communities in Nigeria and Africans in (and others still have) series of associations, youth association etc, which made this to be understandable.

These organization among other things had the following objects of commercial 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 one of the officer in cooperative in Amaijeke in Orlu West L.G.A which were recently created from ISU. The recent increase in the formation of new cooperative societies in the country is clear indication that many people and institution alike have found cooperative societies a useful tool in moving ahead different interests.

In the fourth National Development plan, Government has pledged to give all necessary encouragement towards the growth and development of the cooperative sector in the rural areas. Towards this end, government policy would be aimed at;

  1. Increasing the numbers and membership of cooperative societies.
  2. Strengthening the movement in general through assistance in cash and kind, particularly in the area of provision of storage facilities and shops.
  3. Strengthening the manpower support service, traditionally available to the cooperative societies.

1.2 Statement Of Problem

In spite of all the incentives given to villagers by the government to see the problems the researcher has in mind to identify and find solutions to their problems.
Some of these problems are:

Lack of effective management, uncooperative and un-united attitude of members,

lack of adequate finance which have often been identified among the problems weakening the progress of cooperative societies. Illiteracy also contributed to these problems.

1.3 Objectives Of The Study

The objectives of the study are to:

  1. To evaluate the contribution of cooperative societies to rural development.
  2. To assess the hindrances impeding cooperatives from enforcing this contribution.
  3. To present the mitigation measures put in place and recommend further mitigation plans to improve the viability of the cooperatives.
  4. To examine the role of government in providing supportive facilities to cooperatives.

1.4 Research Questions

The research questions for the study were made up oof the following:

  1. What are the contributions of cooperative societies towards the increase on capital development?
  2. What are the contributions of cooperative towards the provision of infrastructural facilities?
  3. What are the contributions of cooperative towards output growth?
  4. What are the various sources of finance for the cooperative in Orlu West Local Government Area?
  5. What are the various problems comforting cooperative societies in Orlu West Local Government Area?

1.5 Significance Of The Study

This study is significant for the following reasons:

  1. This study will evaluate the contribution of cooperative societies to rural development.
  2. The study will act as an eye-opener to various tiers of government on policy making regarding cooperative advancement.
  3. The study will also help cooperatives champion the cause of the advancement and development.
  4. The study could also act as a future reference material to students and academicians who intend to carryout a research in the area of study.

1.6 Scope Of The Study

The research is based on the evaluation of the contribution of cooperative societies to the rural development. The study is therefore limited to the ministry of commerce, industry and tourism since cooperative have been merged to this ministry and also to the selected cooperative societies in Orlu West Local Government Area.

1.7 Limitation Of The Study

The research was limited to some extent. Unavailability of materials, resources and finance were key deterrents to the full undertaking of this research also the issue of time factor as I had to combine my academic work with research.

1.8 Definition Of Terms

The terms used in this study which has unique meaning that could be subjected to different interpretation by different readers of this project report are defined as follows:


A cooperative is an autonomous association of persons who voluntarily cooperate for their mutual social, economic and cultural benefit.


An action or service that helps to increase something.


This is the gradual growth so that it becomes more advanced and stronger.


The task or duty of cooperative societies.

Rural Development:

Any activity likely to improve the standard of living of individuals and the community in general.

Cooperative Inspectors:

They are employed by the government to take charge of supervision, the activities and programme of primary and secondary societies in an area. They also organized seminars and collective data to acquaint cooperative with new ideas.

Chapter Five

5.0 Summary Of Findings

This study examined the history of economic activities, problems and achievements of Ama-ijeke Orlu West divisional cooperative council Imo state. The study however concentrated mostly on registered societies in the area.

The main objectives of the study were:

  1. To determine the membership strength of cooperative in Ama-Ijeke Orlu West Local Government Area.
  2. To identify their economic performance
  3. To identify their problems encountered
  4. To make recommendations based on the findings on how these problems could be solved.

The result of the study as far back as in 1963. As at 1982, there were 232 registered numbers of cooperative societies and by 1996 the number had risen 2,137. One of the reasons for the increase of the movement in the area was the procurement of screened essential commodities. The study also revealed five types of cooperative societies in the area in the multi purpose co-operative society toping the lost.

The economic activities of these societies are identified to include farming, marketing, rationing, wearing etc. however, most of the activities were carried out on individual basis and the members kept no adequate record of these societies.

These societies also operated loan scheme for their members but lots of members did not repay the loans they obtained through their societies.

Finally, the performance of these societies in the upliftment of economic welfare of the members in particular and achieving the goals and objectives as contained in the bye-laws have not been very positive and successful. A number of factors identified include; low level of education, lack of finance and inefficient management.

5.2 Recommendations

Cooperative societies have been recognized as instrument for social and economic transportation and the following recommendations based on the findings are made for actualization of this target.

  1. Government should closely supervise the economic activities of cooperative societies during and after registration.
  2. This will prevent cases of some cooperative societies becoming active or poorly managed. However, the emphasis is on supervision and not interference.
  3. The members of cooperative societies and even non members should be educated on the fundamentals of cooperatives and the need for cooperative.
  4. The economic activities of the societies should be based on the result.
  5. Government should continue to distribute scale essential commodities through the cooperative and supply productive inputs to them.
  6. Efforts should be intensified for recovery of loans issued to the cooperative societies.
  7. The secondary societies mediating between the primary and the apex federation at Orlu should strive to promote the economic means as a wholesaling, marketing, supplying, processing and storage. The divisional cooperative council should ensure government assistance to cooperative of Orlu L.G.A is properly channeled to the primary societies. And they should be given a manager that will promote their self help spirit.

5.3 Conclusion

Though there was certain misconception concerning the purpose of cooperative societies exemplified by the initial and attitude of the members. There has been a better orientation towards the idea of cooperative self help.

The role of cooperative societies in the economic development of the community demands a consented effort by the cooperative themselves while advocating for increase government of the day economic activity should be adequately supervised.

Assistance in terms of finance should be laid to performance; target and loans should be given only feasibility studies of the studies show that returns from the investment will yield enough income to guarantee prompt payment with adequately planned cooperative movement could develop which could be contributed to the building of the nation economically and self reliant Nigeria society.

5.4 Remarks On Findings

The above findings and discussion can be conveniently summarized as follows:

The performance of Orlu divisional cooperative societies in the upliftment of the economic well being of the members in particular and in achieving the goals and objectives as contained in the bye-laws have not been very positive and successful.

The Orlu divisional cooperative council operates loans scheme for members but most members did not pay the loan they obtained through their society.

Lack of finance, poor health status, mismanagement and embezzlement still constitutes problems in the wheel of economic development of cooperative in scope location. Orlu divisional cooperative provides functional education to their members but the maximum support in payment of fees that comes from the members.

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