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;
- Increasing the numbers and membership of cooperative societies.
- Strengthening the movement in general through assistance in cash and kind, particularly in the area of provision of storage facilities and shops.
- 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:
- To evaluate the contribution of cooperative societies to rural development.
- To assess the hindrances impeding cooperatives from enforcing this contribution.
- To present the mitigation measures put in place and recommend further mitigation plans to improve the viability of the cooperatives.
- 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:
- What are the contributions of cooperative societies towards the increase on capital development?
- What are the contributions of cooperative towards the provision of infrastructural facilities?
- What are the contributions of cooperative towards output growth?
- What are the various sources of finance for the cooperative in Orlu West Local Government Area?
- 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:
- This study will evaluate the contribution of cooperative societies to rural development.
- The study will act as an eye-opener to various tiers of government on policy making regarding cooperative advancement.
- The study will also help cooperatives champion the cause of the advancement and development.
- 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:
Cooperative:
A cooperative is an autonomous association of persons who voluntarily cooperate for their mutual social, economic and cultural benefit.
Contribution:
An action or service that helps to increase something.
Development:
This is the gradual growth so that it becomes more advanced and stronger.
Role:
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.
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