You must have heard lots of things about cooperative societies in Nigeria. Many would want to join to know about the benefits and what they can achieve while they are there. You should know that before joining a cooperative society, you are supposed to know the types which are involved. Knowing the types of cooperative societies that are available will help you know the best one which is fit for you to join, that is why this article have been written to help you out to get to know the types of cooperative societies in Nigeria.
Cooperative Societies In Nigeria
Before rushing down to give you the type of cooperative societies, you should know the meaning as this will help you make your decision or even give you a reason why joining a cooperative society.
Cooperative societies are groups formed by people who have come together to help themselves by contributing their resources and achieving one goal. This definition will give you an insight into why you are joining cooperative societies, it will tell you the main reason for joining that group where you contribute money to. Many cooperative societies are formed to help the members in time of needs, they assist members when they are in urgent need of assistance be it cash or any other thing, members are being taught how to love and care for one another while joining the cooperative society, they are being taught values and how to respect each other in the group. You should know that when you join a cooperative society, the contribution which you are asked to pay or make is not lost as in turn, you will get your money back in a stated time. Many people who join cooperative today are said to be businessmen and women, they make sure they lift each other up financially or in any other way a member might need help. This is one major benefit of joining a cooperative as you will not be left stranded in times of trouble or needs.
You should know that the way cooperatives are done is on a whole different level. Some of the cooperatives engage in business and their members share the profits, others come together and contribute an amount of money monthly and a member collects the whole money for that month. They run it in circles, till all members collect their money round, payment continues every month. There are also other kinds of cooperatives that involves local governments or usually found in large commissions, this type of cooperative where members join and they deduct a certain sum from their salaries monthly, this money is usually kept and the cooperative invests it in a business and at the end of the year they share the dividend to each member, in this same cooperative a member can ask for a loan and you will be able to receive more than what they have taken from your account in total but you are expected to pay back at the speculated time. Below we will be giving you the types of cooperative societies in Nigeria.
Types Of Cooperative Societies In Nigeria
If you have been following through, we have been able to tell you the meaning of cooperative societies in Nigeria and how they function. Now, we will be giving you the types so you can make your choice on which is best for you.
Insurance Cooperative Society
The main goal of this cooperative society is to help members with insurance company payment fees, they help members to help reduce the insurance fees to a minimum. In this society members come together to help make sound contracts with good insurance companies that are ready to cover expenses and cost when things happen, after doing this, then they make sure that members under the cooperative society pay less than others who go there directly. This is a good way of helping out the members, as insurance fees can sometimes be a little too much for some persons.
Consumer Cooperative Society
in this cooperative society, their main goal is to eliminate the wholesalers and the retailers so that things will be cheaper for its members. In this cooperative society, members are been given goods which they buy in bulk from the producers and they make it available to their members to help meet their needs. You should know that this is way cheaper, especially the aspect of foodstuffs as this will help lots of families. If the goods are in surplus, they are being sold to and the profit is being shared among the members of the cooperative society according to their value of the purchase.
Credit And Thrift Cooperative Society
These kinds of cooperative societies are very common in Nigeria, you find them in every state and lots of people join because of the benefits. This society provides short term financial support or aid to its members when they need it and they have been termed to be very helpful at all times.
Housing Cooperative Society
Being in this cooperative society guarantees you of having the liberty to get the best deals out of houses, building materials and others. You are free from Landlord exploitation and harassment. Many join this cooperative society because of the benefit they get from it, they get the cheapest housing deals and they provide financial assistance to members for building their houses.
Marketing Cooperative Society
The main aim of this group is to eliminate middlemen. These cooperative societies are formed by producers and they help members by storing their goods in warehouses and sell at a good price to consumers and they make good gains. They influence the demand-supply forces; they provide storage facilities’ to members where they can keep their goods at safer places. You should know that the profits are divided into each member’s collective output.
Producer Cooperative Society
This cooperative society is almost the same as the marketing cooperative society, their aim is to eliminate the middlemen and groups from industrial production. The society produces goods for the requirements of its members and the members get the dividends according to what they have invested.
COOPERATIVE FARMING SOCIETY
This is another type of cooperative society that involves farming, they are aimed at maximizing the benefits of large scale farming and helping the farmers to get good acres of land. You should know that it helps increase production by the acre and they also help in improved techniques of cultivation.
In conclusion, we believe this article has been helpful to you all, many of your questions have been answered with this article. We have given you full details about the types of cooperative societies in Nigeria and other facts that you need to know about them.
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