Cooperative Society is a group which is regulated by Nigerian Cooperative Societies Act. The earnings generated by the cooperative benefit the member-owners alike.
Moreover, the way a cooperative operates in Nigeria is much closer to a traditional business than a non-profit. Read along with me to learn everything you need to know about cooperative society in Nigeria.
What is a Cooperative Society
A cooperative society is an unofficial grouping of people who have banded together voluntarily to accomplish their economic objectives to their advantage.
It is an independent group of people who have come together voluntarily to support each other’s needs in the areas of economic, social, and cultural development.
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Establishing a cooperative society in Nigeria
The Nigerian Cooperative Societies Act, addresses cooperative society registration, and governs cooperative societies.
In Nigeria, corporate societies are registered at the appropriate cooperative society ministry in each state.
So the Act has been repealed in various states, and is governed by Cooperative Societies Law of such states.
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3 Conditions for creating a Cooperative Society
- The minimum number of members for a saving credit cooperative society is twenty.
- A cooperative agricultural society must have at least fifty members.
- Other varieties of cooperative societies must have ten or more members.
It should be mentioned that for a group to be recognised as a cooperative society, its members must meet the requirements listed below:
- A participant must be at least fifteen (15) years old.
- The board members must be at least 18 years old.
- Each individual must share a need with other society members.
- Every member must work in a field related to the dominant civilization.
- A member must be able to purchase shares and make payments for dues.
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10 Requirements for Cooperative Society Registration
- An idea for the cooperative society’s name.
- Address that the cooperative organisation is proposing.
- The cooperative society’s purpose.
- Membership rules.
- Four copies of the
- cooperative society’s proposed bylaws
- letter of approval from each cooperative society member.
- Feasibility study for the proposed operations of the cooperative society.
- Certified copy of the resolution adopted at the cooperative officer’s first meeting of members.
- Official cooperative society stamp duty.
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Lagos Cooperative Society Registration Procedure
- To request registration as a cooperative society, Submit a registration application to the Director of Cooperatives at the Ministry of Commerce, Industry, and Cooperatives.
- The locations of the cooperative society will be inspected by representatives of the Ministry of Commerce, Industry, and Cooperatives.
- The applicant is obliged to pay the required fees.
- Depending on the nature of the cooperative organisation, the minimum required members must properly sign the application.
- The members are given a form to complete and return while a name search is conducted to determine availability.
- When one is available, it must be included with the other documents for verification and approval along with a stamp showing the cooperative’s name and emblem.
- A letter of recognition is issued following verification if the Director of Cooperatives is pleased. This letter grants the cooperative permission to function for three years as a cooperative organisation.
- After three years, a certificate of registration will be granted along with a certified copy of the cooperative’s by-laws.
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Types of Cooperative Society in Nigeria
In Nigeria, there are primarily three types of cooperative societies:
- Farmers’ cooperative or agricultural cooperative society
- Credit and Saving Cooperative group (also known as microfinance cooperative)
- Multi purpose cooperative society (General cooperative).
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What are the 7 primary principles of Cooperative Society in Nigeria?
Cooperatives are based on core values which have been refined, adapted, and reinterpreted over time. Cooperative worldwide have accepted the seven principles used by cooperative Alliance today and they are:
- Self-help
- Open and voluntary membership
- Self-responsibility
- Democracy
- Equality
- Equity, and
- Solidarity.
What are the functions of cooperative society in Nigeria?
The functions of cooperative society in Nigeria are as follows:
- They aim to provide different products and services to its members.
- They aim to reduce the ambiguous profits of middlemen in trade and commerce.
- They also give out loans with cheaper interest rates to their members and nonmembers.
- They protect and bridge the exploitation of the weaker members of society.
- They seek to protect the rights of people at large, both the producers and consumers.
Who regulates Cooperative Societies in Nigeria?
Cooperative Societies in Nigeria are governed and regulated by Nigerian Co-Operative Societies Act which in itself is a Federal Law.
This federal law grants powers to the Governor of each state in Nigeria to establish a Directorate for Cooperatives which will be in charge of registering and regulating cooperatives in each state.
Conclusion
Legislation from different states regulates cooperative societies. When registering a cooperative society in Nigeria, it is important to keep in mind that the procedure varies from state to state.
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