People choose to join a cooperative for a variety of reasons. The motivations always revolve around resolving issues, from looking for better value for money to seeking a group of like-minded people to assist with certain requirements. This essay outlines the benefits of joining one and how it can advance both your financial and personal development.
In Nigeria, cooperative groups are significant in a number of ways. Cooperative societies, which are made up of like-minded individuals, are set up to address both the problems that their members share and those of society as a whole. The value of cooperative organizations cannot be overstated, from the empowerment of their members to their ability to advance the interests of society on particular topics. Learn about the significance of cooperative societies in Nigeria from this article.
Importance of cooperative societies in Nigeria
1. They encourage joint entrepreneurship
In addition to lowering individual risk in commercial operations, cooperatives foster a culture of shared production, decision-making, and problem-solving. According to statistics, 60 to 80 percent of enterprises fail, but just 10 percent of cooperatives do.
2. They foster competition
Cooperatives aids businesses in competing with big, national stores. These cooperatives also benefit their members because of pricing adjustments. This forces rival organizations to compete effectively.
3. Helps to fight inflation
Cooperative societies, or “cooperatives” as they are often known, aid in the fight against inflation in Nigeria. They result in lower product pricing. These cooperative organizations purchase products at factory rates directly from the producers and then resell them to the members at a fair discount from the price attained on the open market.
Cooperative societies sell the products they purchase from producers at a set, fixed price. They are in charge of how many products are sold at once as well. By doing this, they make these commodities easily accessible to the cooperative society’s members at a discounted price, enabling the members to both afford and receive them. This action has a significant anti-inflationary impact in Nigeria.
4. Teaching morality
Industrial workers in developing nations engage in a variety of immortalized activities. These ordinary folks can learn how to live morally in both their personal and professional lives by joining a cooperative organization.
5. Skill improvement
Cooperative societies implement numerous beneficial activities with the goal of enhancing both the members and society. As a result, they might be the nation’s most competent and effective labor force.
6. Cultivating saving habits
Cooperative societies encourage the lower class members of society to become curious about money, which has a significant positive effect on the entire nation.
7. Reducing intermediary misconduct
Due to a lack of skills, small producers in our nation knock on the doors of middlemen to gather the necessary ingredients and sell the goods. As a result, they sell their goods to the intermediaries for less money than they would otherwise. Cooperative societies act firmly to eradicate this type of wrongdoing.
8. Cooperative Societies Assist In Improving Quality Of Life
Cooperative societies are significant in Nigeria because they raise citizens’ standards of living. It contributes to lowering poverty. Cooperative societies help their members and employees have better social and economic lives, which helps to eliminate poverty.
They give money to members who are truly in need. Members typically turn a profit when they sell the commodities they purchase from the cooperative group. Their lives are improved by the profit they receive. They enhance the general living circumstances of both their employees and members.
9. They provide employment
Numerous cooperative organizations in Nigeria offer their members a platform to find jobs. By giving their members the tools they need to launch their own enterprises, they open up employment prospects. They also give their members the opportunity to share in production and profit. Additionally, cooperative organizations offer ways for members to participate directly in the manufacture and distribution of goods and services. Cooperative societies provide jobs in this way.
They offer either long-term or short-term work to young people who are present in their operational area. Additionally, students who are on break have the chance to work on a contract basis. This in turn aids in lowering Nigeria’s unemployment rate.
10. Poverty reduction
By raising awareness and launching a movement among the low-income members of society, we can end poverty among these large populations. The operation of such a campaign is greatly aided by cooperative society.
11. Low-interest loans are provided by cooperative societies
Cooperative societies increase credit accessibility in Nigeria, where it already exists. Due to the requirement for collateral and the ensuing paperwork, obtaining a loan from another financial institution, such as a bank, may be more difficult. On the other hand, cooperative societies offer comparatively low-interest loans to their members with the support of other members who act as guarantors. They offer loans to members in the form of cash or products. The well-being of the populace is subsequently improved as a result of this.
12. Cooperative societies promote social and economic development on a national scale
Cooperative societies encourage citizen participation and a more equitable distribution of the benefits of globalization in this regard. Cooperatives also contribute to the sustainable development of people. They also support efforts to combat social isolation. Cooperative societies play a significant role in both national and social development as a result.
13. Cooperative organizations Ensure Food Security
Farmers are able to obtain larger profits thanks to agricultural cooperative societies. They assist their members by offering assistance, financing, and training. In order to grow, the members won’t necessarily need to look to international organizations. These cooperative organizations ensure that even the most underprivileged populations with limited resources have access to the resources they require, resulting in enormous volumes of produced and maximized profits. In turn, this fosters food security for the entire country.
14. Gender equality is promoted by cooperative societies.
Cooperative societies, which uphold the idea of open membership for people of all genders, support gender equality. They provide a platform for women to pursue their goals. Women who join cooperative societies make more money and participate in cutting-edge work activities. They also increase local community participation and empowerment. Currently, a sizable portion of cooperative society members are women. Governments and cooperative groups both support having women in positions of leadership in order to advance gender equality.
15. Cooperative organizations help to develop local expertise
Cooperative societies, which are governed by members of the community, aid in the development of regional expertise. Local natives deliver the required services, circulate the necessary funds, and even contribute to the expansion of the community.
16. They help to foster Unity
Cooperative societies are important in Nigeria because they foster solidarity. Regardless of social class, members of cooperative organizations collaborate with one another for the sake of the nation. People from all walks of life who have a common objective are brought together by it.
17. Help to reduce unequal wealth distribution
Cooperative societies have several benefits, one of which is that they contribute to a reduction in wealth inequality. They work to reduce capitalism, which exacerbates wealth disparity, to make it possible for wealth to be distributed fairly.
18. Training programs are provided by cooperative societies.
Cooperative societies organize workshops, seminars, and courses to provide training programs for new and untrained members. The participants in these training programs learn a range of talents, including ICT training, baking, furniture making, catering, sewing, make-up, website design, event decorations, repairs, hair styling, creative design, and more.
19. Help to fill certain needs in the society
They supply the fundamental infrastructure that big businesses are unable to do. In rural places, they also provide food and essential supplies. Rural communities also benefit from the cooperative societies’ commercial transactions’ profits.