CHAPTER ONE: INTRODUCTION

1.1     BACKGROUND TO THE STUDY

The history of co –operative societies cannot be completed without making references to the (1884) Rochdale equitable pioneers experience. The first known co –operative society, the world over, reared its head in Rochdale in (1884). That was when the impact of industrial revolution was been felt greatly by the working class.

          Akpaneua (2001), observed that to weavers in Rochodale who contributed money and established co –operativebusiness where the founder of co –operative society in the world. Akpaneua (2001), maintainedthat at the end of the business year,theRochdale co­-operative discovered that the profit made by them was so far greater than the total profit they have made,if they had to work an individual basis without  co-operation.

Since (1844) the objective of co-operative society has spread to many roots and corners. In west African countries,many cooperatives societies have been established especially among the farmers, producers and buyersin Nigeria, the history of co-operatives dated back to (1937) during which producers and buyers came together to form a co-operative union.

Since that time,many co-operatives organization have been spring up here and there are to cater for the interest of one group or the other.All co-operative societies in formation receive model bye-Laws for their guidance and describe the complete working of the society. The ultimate authority in a society is general meeting of all members which elect annually management committee to carry out the day to day functions of the society.

          All officers of the society, they normally elected through voting at the general meeting. Organization and functions of co-operative societies are explained below:

          According to Amana (1978) in Nigeria, the co-operative society department was included in the port-folio of the ministry social welfare and co-operative. The head of department was the registrar of co-operatives of societies with his headquarters in Kano State. All assistant registrars took charge of certain are of operation in which they supervise and teach the members of co- operative inspectors. In addition, there were some native administration co-operation inspectors whose touring areas were generally limited to the boundary of their respective native authorities. In some areas two or more same native authorities may share one inspector. The work of co –operative consist of helping in the formations of the societies, teaching ordinary members their duties, right and privilege and teaching the committee.

          Similarly, their duties are generally how the society should be run to genuine democratic basis. It should be noted that the government of Nigeria has been making frantic effort to encourage co-operative societies among various groups in the society. This has lead to the formation ofvarious co- operative societies among various groups in the country. This has lead to formation of various co-operative unions among artistry, trader, consumers, producers etc. in recent times; the government of Nigeria has stressing the importance of co-operative societies in national development. That is why from (1986) to date the federal government of Nigeria have been encouraging co-operative associations by the introduction of better live for rural dwellers and family support programs.All these measures are aiming at ensuring and family support program.

All measures are aiming at ensuring that the lots of the rural people are better through co-operative efforts.

1.2  STATEMENT OF THE PROBLEM

          The successive administration in Nigeria has been concerned with how to transform the rural areas.This has necessitated the introduction of various rural development programmers such as Agricultural development programmes,operation feed the nation (OFP),better life for rural area dwellers and family support programmes(      FSO),yet our rural areas remains undeveloped,and in recent times the development activities in rural areas to nosedive the morethe questions to ask, therefore are: despite these land able programme of government,why are the rural area in the country remains grossly underdeveloped? Co –operative societies, being veritable organs for development, what role can they plan to bring about the expected development to the rural area, this study shall, therefore, examine the prospect development to the rural area? The prospect of co –operative society can play to bring about developmental changes to the rural. Since rural area absorb the highest percentages of the population of Nigeria citizens, the need to bring about development to the area not to be over emphasized.

1.3     OBJECTIVE OF THE STUDY

          The main objective of this study is to examine the prospect of co –operative societies in rural development.

Other sub –objective of the study are as follows:

a.     To examine the role government play in assisting co –operative societies to achieve their rural development goals.

b.     To identify any of the obstacles or barriers to the co –operative societies to carryout their rural development activities.

1.4     STATEMENT OF HYPOTHESES

As guide for this study, the following hypotheses have been formulated.

HYPOTHESIS 1

H0:   People are not aware of the gains of co –operative society

H1:   People are aware of the gains of co –operative society

HYPOTHESIS 2

H0:   Co –operative society lack fund to carryout development activities.

H1:   Co –operative society do not lack fund

HYPOTHESIS 3

H0:   The selected co –operative societies do not have adequate manpower to pilot the affairs of the society.

H1: The selected co –operative societies have adequate manpower to pilot the affairs of the society.

HYPOTHESIS 4

H0:   Co –operative society do not play any significant role in rural development.

H1:   Co –operative society play significant role in rural development.

1.5     SIGNIFICANCE OF THE STUDY                  

          This study has been of great benefit to the rural dwellers as it avail them of the opportunity to form co –operative societies and enjoy the benefit of such co –operative societies.

The study was also been of importance to co –operative organization as the finding enables them to identified the problem militated against co –operative societies in Nigeria.

1.6     SCOPE AND LIMITATION OF THE STUDY

SCOPE:

This study covered only the registered three (3) selected co –operative societies in Idah Kogi State. The scope cut across the selected co –operative societies whose names are registered with the ministry of commerce, industries, co –operative, unregistered co –operative societies are not covered in this study.

LIMITATION:

This research work on the topic Analysis of the prospects and challenges of co –operative societies in rural development is focus only in co –operative societies Idah, Kogi State. The research was faced with same problem like finance and during the cause of investigation, data collection and high level of inconsistency among the few ones that was available.

1.7     DEFINITION OF KEY TERMS

Co –operative as an association of persons, usually of limited means who voluntary, democratically came together to achieve a common economic and social objectives of its member by making equitable contribution of capital required and accepting a pair share of risk and benefit of the undertaking.

          As could be seen, emphases are laid on five points, namely:

ð Voluntarism

ð Democracy

ð Common economic and social objectives

ð Equitable contribution

ð Risk and benefit

I.                  VOLUNTARISM: in other words, in co –operative, people pull their resources together not be cohesion but their own volition and willingness.

II.               COMMON OBJECTIVE: identical economic and social interest are identified and pursued by all members not of varied or divided interest that is all members fight a common course.

III.           DEMOCRACY: Policies and objective are formulated and executed by means of majority views and not that of a selected few (democratic -control) that is the supreme authority is not vested in a management committee makes recommendation, but the final decision vest with members and each members has one vote and no more.

IV.           EQUITABLE CONTRIBUTION:Each of them makes just, reasonable and modest contributions to the capital required but not permitting overwhelming percentages of the capital to be controlled by a single individual or a selected few.

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