How to Set Up a Cooperative Society in Nigeria

Written By Christiana Charles-Iyoha 

 A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise. (www.ica.coop).

 There are different types of cooperatives and they include:

1.  Primary cooperatives    - comprise natural persons.

2. Secondary cooperatives – group of cooperatives in a state, for example all the cooperatives in Lagos State under an umbrella.

3. Tertiary Cooperatives – the umbrella organization of cooperatives in a country for example, the Cooperative Federation of Nigeria

Primary cooperatives are further sub classified into:

• Multipurpose – is more of a group of companies. They are licensed to invest in any sector of the economy as well as operate as thrift and savings. (I suggest you go for multipurpose so you can carry out practically every legal activity within this platform).

• Thrift and Savings – mobilize savings within members and give loans to members. Some are quite daring as they give loans to non members at higher interest rates all in an attempt to increase the revenue base of the cooperative.

• Agricultural – limited to only agriculture. Usually a group or groups of farmers who come together to leverage agricultural loans.

• Housing – limited to providing housing at affordable rates to members.

Steps

1. The cooperative society must have at least ten or more natural persons as members.  XYZ that could be you or any interested person plus nine other members for a start. 

2. The cooperative society must have a name, for example Premium Thrift and Savings Cooperative; the Billionaires Multipurpose Cooperative

3. The cooperative society must write a letter of invitation for inauguration to the relevant cooperative office in your area.  Thereafter, officers from the Cooperative Area Office will visit your office for the inauguration, depending on the agreed time and date. All members of the cooperative especially the officers to be elected should be at the meeting.  In addition to being inaugurated, the members will be educated on how to run a cooperative.

Nigeria’s Informal Financial Services Sector

Written by Christiana Charles-Iyoha

Nigeria’s informal financial services sector is serviced and fuelled by micro enterprises, micro entrepreneurs in the informal sector as well as unemployed citizens who attempt either saving up or borrowing micro start up capital through this service; maintaining this service to both build up operating capital and access microcredit when the need arises. However, insurance is a critical missing aspect in this financial services sector. Micro businesses like medium and macro businesses also suffer unforeseen challenges such as fire incidents, loss of goods, seizure of goods, accidents, robbery, etc.

The informal sector is the engine of economic growth, an increasing driver of economic development. An analysis of economic activities in the informal sector indicates sale of food (raw food materials); cooked food (mama puts including fruits, vegetables, spices, oils, etc); cooking utensils, soaps, building materials, cafes, recharge cards, car parks, mechanics, tailors, fabric merchants, drivers, okada, artisans, schools, coaching activities, alajo, and a host of other micro economic activities.

The informal financial services sector mirrors a people’s determination to access financial services against all odds. Largely micro, the informal financial services sector proliferates cities, towns, villages, creeks and just anywhere you find a commune of Nigerians and anyone living amongst them.

Mercy Drops: Gift of God Part 1

kuyoyou@yahoo.comMercy Drops: Gift of God Part 1