This study was conducted into Cooperative Society as an agent of rural development with ADO
ODO/OTA Local Government as a case study. The study is divided into five chapters.
Chapter one introduces the subject matter as well as the object of the case study. It presents the
proposal for the work and the significance of the study. Finally, it defines key terms used in the
Chapter Two presents literature review on theoretical framework, empirical framework and
conceptual framework of Cooperative Society. Rural development was also discussed in this
Chapter three presents the procedure adopted by the researcher in the conduct of the study. This
involves the gathering of data which will be analyzed and presented with a view of finding
solution of the research problems.
Chapter four deals with the data analysis and discussion and testing of research questions. Tables
and percentages as well as Test-re-test were used in analyzing and testing the research questions.
Chapter five, being the conclusive chapter, presents a summary of findings and
recommendations. The limitations of the study were also discussed and suggestions for further
TABLE OF CONTENT
Table of Contents vi – viii
CHAPTER ONE – INTRODUCTION
1.1 Background to the study 1
1.2 Statement of the problem 2
1.3 The Objective of the Study 3
1.4 Research Question 4
1.5 Research Hypothesis 4
1.6 Significance of the study 5
1.7 Scope of the study 5
1.8 Definition of Operational Terms 5
CHAPTER TWO – LITERATURE REVIEW
2.1 Meaning of Cooperative Society 8 – 9
2.2 Characteristics of Cooperative Societies 10 – 11
2.3 Formation of a Cooperative Society 12
2.4 Types of Cooperative Societies 13 – 14
2.5 Advantages of Cooperative Society 15
2.6 Benefits of Cooperative Societies 16
2.7 Prospects of Cooperative Societies 17
2.8 Rural Development 18
2.9 The impact of Cooperative Societies on Rural Development 19
2.10 Problem faced by Cooperative Societies in rural development 20
2.11 The need for re-engineering cooperative societies 21
CHAPTER THTREE – RESEARCH METHODOLOGY
3.1 Introduction 23
3.2 Research Design 23
3.3 Area of study 24
3.4 Population of the study 24
3.5 Sample and Sampling Techniques 24
3.6 Sources of Data Collection 25
3.7 Instrument used for Data Collection 26
3.8 Test of validity and reliability of research Instrument 26
CHAPTER FOUR – DATA ANALYSIS PRESENTATION AND INTERPRETATION
4.1 Introduction 27
4.2 Data Presentation and Analysis 27
Analysis of Research Questions 28
Analysis of Questionnaire 30
4.3 Discussion of findings 34 – 35
CHAPTER FIVE – SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary 36
5.2 Conclusion 37
5.3 Recommendation 38
1.1 Background to the Study.
Today, in an era when people feel powerless to change their lives, Cooperatives represent a
strong, vibrant and viable economic alternative. Cooperatives are formed to meet people’s
mutual needs. They are based on the powerful idea that together, a group of people can achieve
goals none of them could achieve alone.
For over 160 years now, Cooperatives have been an effective way for people to exert control
over their economic livelihood. They provide unique tool for achieving one or more economic
goals in an increasingly competitive global economy. As governments around the world cut
services and withdraw from regulating markets, Cooperatives are being considered useful
mechanisms to manage risk for members in agricultural or other similar Cooperatives, help
salary/wage earners save for the future through a soft felt monthly contribution that is deducted
from source, own what might be difficult for individuals to own by their efforts, strengthen the
communities in which they operates through job provisions and payment of local taxes.
From the 1950s to mid 1980s, Cooperatives played a central role in the economic planning of
post-colonial nation States and other development countries. Cooperatives were target for
considerable amount of development assistance. This aid did produce some self-sustaining
Agricultural Cooperatives especially for farmers close to Urban Markets or who were
strategically placed for exporting their produce (Joseph.G.Knapp 1962).
Ado-Odo/Ota is plague by high illiteracy rate and insufficient investment in agriculture. As a
result, participation in global market is limited, further perpetuating the cycle of poverty. It has
been suggested by the international community that concerted efforts be made towards building
individual and institutional capacities in developing nations.
1.2 Statement of the problem
A study by Joseph C. Kennedy, indicates that many African countries have failed to create
sustainable development, despite the great potential resulting from their inherently large amount
of natural resources.
Global report showed that despite the constantly increasing aid most of the continent is
experiencing falling GDPs in absolute terms, a concern which is exemplified by a report from the
Organization of Economic Community (OEC), which indicated that the aid to the Ogun state
region increased by a factor of 4.6 in constant terms between the early 1970s to the mid-1990s.
Needless to say, many scholars contend that the problem of aid misused, combined with aid
mismanagement and the resulting lack of development in Ado-Odo, Ota can partly be attributed
to the types of policies formulated and implemented by the government of many African nations.
Inspite of all the orchestrated policies and programmes for successive government in Nigeria, the
problem of rural backwardness and under-development has remained unresolved. This is evident
in the persistence of agriculture stagnation, hunger, poverty, disease, unemployment, poor
housing, under-employment, poor infrastructure facilities. Most of our rural areas also suffer
from inadequacy of social services, high birth rate and death rate, low life expectance,
malnutrition and Ignorance, lack of productive, technical and managerial skill to improve
In the light of these problems, the researcher is therefore boarded and wants to probe into the
activities of societies to know whether they are contributing towards the development of our
rural areas with a particular focus on ADO-ODO/OTA LOCAL GOVERNMENT area Lagos
The researcher also intends to investigate cooperative societies as agent of rural development by
identifying the above mentioned phenomenon and to know the prospect and problems
encountered by cooperative societies in their attempt to develop the rural dwellers.
1.3 The Objective of the Study.
The broad objective of the study is to examine the contribution of cooperative societies to the
development of ADO-ODO/OTA local government area.
The specific objectives are as follows:
1. To identify or determine whether cooperative societies have contributed to the
development of rural areas in ADO-ODO/OTA local government area. 2. To find out the financial problem area affecting the contribution of cooperative societies
to the development of ADO-ODO/OTA local government area. 3. To determine the impact of the strategies design and adopted by cooperative societies in
rural development. 4. Make recommendation on ways towards ensuring greater success of cooperative societies
1.4 Research Question.
The following questions are to guide the researcher towards finding out the solutions related
to the problems, objectives and question of research.
1. Do cooperative societies play vital role in the development of rural areas? 2. Do financial problem hinder the activities of cooperative societies? 3. How helpful are government and financial institutions in enhancing the activities/roles of
1.5 Research Hypothesis
Research Question 1:
Ho: Cooperative societies do not play vital role in the development of rural areas.
Hi: Cooperative societies do not play vital role in the development of rural areas.
Research Question 2:
Ho: Financial problem does not hinder the activities of cooperative societies
Hi: Financial problem hinders the activities of cooperative societies
Research Question 3:
Ho: Government and financial institutions are not helpful in enhancing the activities/roles of
Hi: Government and financial institutions are helpful in enhancing the activities/roles of
1.6 Significance of the study
This study intends to achieve the following objectives:
Help in educating the farmers and the entire rural dwellers on the importance of
cooperative societies. Also at the end of the research work, the general public would have gained a lot of
knowledge on the importance of cooperative societies. The study will also be significant to future researchers on the facts of rural areas. Also helps to discover problems of Cooperative societies and provide recommendation to
the problem identified.
1.7 Scope of the study
It is a known fact that development is not confined to any particular area but all over the globe.
However, this study focuses its attention on the development of rural areas through the effort of
cooperative societies with reference to ADO-ODO/OTA local government area in Ogun State.
Hence the type of cooperative societies, role, prospect and problems would be looked into with
particular emphasis to ADO-ODO/OTA local government area.
1.8 Definition of Operational Terms
It is important to give a brief definition of the following key terms, in order to know the meaning
of the key concept and some words in the research project.
DEVELOPMENT: According to Todarro 1997, he defines development as a many sided
process involving changes in structure, institution and attitude as well as the acceleration
of economic growth, the reduction in inequality and eradication of hunger and poverty in
a given society. RURAL AREAS: An area, which is so backward in terms of social amenities and other
materials found in urban areas RURAL DEVELOPMENT: Small scale development in a multi-dimensional process by
which productivity, income and welfare in terms of health, nutrition, education and other
features of satisfactory life of rural people can be improved or transformed. CO-OPERATIVES: An association of persons usually of limited means who have come
together to achieve a common economic goal through equitable contribution. DIRECTIVE APPROACH: This top-bottom approach in any rural setting is where
agencies either local government, state government or federal government tries to
identify the felt-need of people in the community. This approach comes in when there is
lack of human and material resources, provision of technical know-how for the
community development. Introduction of new method in education, weaving modern
system of farming for rural people. NON-DIRECTIVE APPROACH: The people of the community identify their own felt
need i.e. their duty to plan for action and also implement it. Government/Philantropists do
not come in but they can seek advice in terms of technicality. It is usually applied to
developed society or rural areas that have adequate human, material resources. MID-WAY APPROACH: This is a sitation where by the people of the community and
the agencies identify their own felt needs by providing human and material resources.
More emphasis is given to the people. This approach is applied to both primitive and
developed societies or communities. FELT-NEEDS: Isaac 2005 citing Onyishi define felt-needs as those tangible and
intangible things the community or group require as essential to its survival as an organic
whole. Without this, the community or group may disintegrate or remain stagnant. Such
things vary from society to society itself. AGENT: Oxford English Dictionary explains agent as an active power or cause, that
which has the power to produce an effect
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