Cooperative societies are autonomous associations of individuals that voluntarily unite with the purposes of meeting common economic, cultural and social needs and aspirations. The association becomes jointly owned and democratically controlled by its members.
A group of twenty men, weavers and skilled workers in other trades, are recognised as the first to formally form a cooperative society in 1844 in Rochdale, England. They created a business model that guided their work and association. They also established a shop in which to sell their goods.
In Africa, cooperatives have been an established method of mutual support and poverty elevation even before colonialisation. Traditional African customs support the principles of cooperative societies. There have been different types of cooperative associations with different names in Africa. There is Yissirou in Benin Republic. There is Gameya in Egypt. There is Nonoboa in Ghana. There is Pari in Mali. There is Pare in Tchad. There is Soo in Togo. And in Nigeria we have Ajo (Yoruba), Utu (Igbo), Adashi (Hausa), Efe (Ibibio) and a host of several others.
The objectives of cooperative societies are essentially to provide identified support and services to members. By working together, members strengthen their capacity and eliminate unhealthy competition. Cooperative societies also help engender fairness and transparency. Successful cooperative societies can enjoy economic interest, operational savings, economies of scale, product and service quality improvements, etc.
A formal cooperative society is a legal entity that limits the liability of its members. The society may receive grants, subsidies and loans from governments, banks and support organizations. Where the society earns profits in the conduct of its business, members earn dividend and whole or part of the profit can be reinvested. Cooperative societies also suffer some structural difficulties and cultural constraints. They tend to, generally though by no means always, be small and lack sufficient funds to continue to grow the opportunities they have. Their officials may lack proper managerial skills to conduct their affairs and to control and monitor their members. Other challenges that help stunt the development of cooperatives in Nigeria include: High level of illiteracy among members, poverty, low public awareness, lack of interests, low level of participation, poor management. Fortunately, there are deliberate actions that can be taken by regulators and operators to make the cooperative societies highly successful.
The Kano State Ministry of Commerce, Industry, Cooperatives and Solid Minerals is working closely with the societies, professionals and support organisations to aggressively grow cooperative activities in the state. Measures being taken include the provision of trainings, financial and non-financial support, cooperative fairs etc.