In this article, we shall discuss about the various types of cooperative societies in Nigeria today. Cooperative societies are private enterprises where people with similar interests band together to help themselves by making regular financial contributions or by selling their products and splitting the profits. These organizations are set up so that they may cater to the individual requirements of their members. The majority of cooperative organizations run businesses, while others give their members financial aid. Since there are various kinds of cooperative societies in Nigeria, each kind works to fulfill the organization’s goals, which are to satisfy the always shifting demands of its members. The different cooperative societies in Nigeria will be looked at in detail below.
TYPES OF COOPERATIVE SOCIETIES IN NIGERIA CURRENTLY
The following are the different types of cooperative societies in Nigeria today:
CREDIT AND THRIFT COOPERATIVE SOCIETY
Every state and city in Nigeria has credit and thrift cooperative societies. They are renowned for helping their needy members financially. In times of need, many people find this kind of organization to be highly beneficial and practical. When members pool their resources to save money either monthly or weekly, the funds are then distributed either weekly or monthly, one member at a time. They also offer their members quick loans. These loans always have cheap interest rates and, if necessary, readily available collateral.
MULTIPURPOSE COOPERATIVE SOCIETY
A cooperative society that is set up solely to provide various services to its members is referred to as a multipurpose cooperative society. They carry out a variety of tasks and look for the general growth and wellbeing of their members. A typical multifunctional cooperative society conducts services like lending money to its members, giving them the chance to save money, giving them business chances, giving them access to consumer products like food, and many other fantastic things.
CONSUMER COOPERATIVE SOCIETY
The goal of a consumer cooperative society is to make goods and services accessible to everybody. In times of rising consumer goods costs and scarcity, this kind of cooperative society is particularly beneficial. Consumer cooperatives seek to completely cut out retailers and wholesalers so that people can purchase goods for less money than they would typically pay to retailers. These cooperative groups purchase their products straight from the producers. The cooperative’s members are then given access to these products. When there is a surplus of a good, it is sold to the general public. The sale’s proceeds is subsequently divided among the members after this.
FISHING COOPERATIVE SOCIETY
Fish farmers form a fishing cooperative society to market their products. Members of such cooperative societies can obtain their fishing equipment for a very low cost. These fish farmers band together to save money and help their less fortunate neighbours. This cooperative society goes so far as to market fish products to the general public, from purchasing cheap fishing nets to purchasing fuel for their boat engines. Members buy their equipment together by pooling their resources. What this cooperative can do for its members is limitless.
AGRICULTURAL/FARMERS COOPERATIVE SOCIETY
Farmers who come together to support one another in exploiting the advantages of industrial farming create an agricultural or farmers cooperative society. This cooperative association also aids farmers in acquiring decent pieces of land and offers mechanized farming equipment, aiding in the improvement of farm output and cultivation methods. Nigerian farmers frequently belong to farmers cooperatives because they want to increase their output. Farmers that require loans are also given them by this cooperative society.
INSURANCE COOPERATIVE SOCIETY
An insurance cooperative society is established with the specific purpose of helping members pay the costs of the insurance companies. The insurance premiums that its members would otherwise have to pay insurance firms are minimized by this kind of cooperative organization. To ensure they pay less for insurance than consumers who contact the firms directly, members of these cooperative societies gather together and consult with certain insurance companies. This cooperative society makes sure that its members have a good deal with the insurance companies because they are there to cover the cost of damages when unforeseen occurrences occur. One of the many advantages of joining a cooperative insurance society is this.
MARKETING COOPERATIVE SOCIETY
A cooperative society founded specifically to do away with the idea of intermediaries is known as a marketing cooperative society. Producers establish this kind of cooperative society to help members keep commodities and then sell the goods at a good price to eager customers, enabling the members to make good profits. This kind of cooperative organization functions by giving its members access to storage facilities to assist them store their commodities, which influences the forces of supply and demand. The proceeds from the sale of these products to end users are distributed evenly among the participants.
PRODUCER COOPERATIVE SOCIETY
A cooperative society with characteristics resembling those of a marketing cooperative is a producer cooperative society. As they assist their members with the storage and marketing of goods and divide the subsequent sales proceeds according to the amount each member invested, they also work to eliminate intermediaries. In this kind of cooperative society, the members pool their resources to acquire things, store them, and then later sell them.
HOUSING COOPERATIVE SOCIETY
One cooperative in Nigeria that assists its members in obtaining the best offers on purchasing and owning properties is the Housing Cooperative Society. They also assist members in purchasing construction supplies at a discount. This kind of cooperative society attracts people who own homes without stress since it offers them opportunities. This cooperative society helps its individual members who are building their homes financially while also offering them the vest prices to facilitate the construction process. This cooperative society makes sure that all of its members possess successful real estate ventures and are landlords.