THE ROLE OF CONSUMER CO-OPERATIVE IN ECONOMIC DEVELOPMENT

1.1 Introduction

The consumer cooperative society today is going through some difficulties in Nkwere local government. Consumer cooperative has been concerned with a systematic, preservation and the dissemination of knowledge in the system. This consumer cooperative has not been very successful in Nkwere due to problems surrounding them. This society would be a better and more effective society if they have formed themselves into cooperative registered society according to the law. The consumer cooperative society has been intimately concerned with acquisition, systematic, preservation and dissemination of her cooperative knowledge. As they proceed, there is need to make these Observations being recorded in journals, and books. Other non materials more accessible to users for convenient and immediate consultation to the members become more imperative.

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.

1.2 Background of Study

The consumer cooperative society has been intimately concerned with acquisition, systematic, preservation and dissemination of her cooperative knowledge. As they proceed, there is need to make these Observations being recorded in journals, and books. Other non materials more accessible to users for convenient and immediate consultation to the members become more imperative. Consumer cooperative in Nkwere local government coordinated better methods of farming and encouraged the farmer’s creativity. They protected the farmers’ interest as well as selling quality goods at affordable rates.

The infrastructure for affective communication network needs to be established in their various zone of operations provision of reliable roads and associated facilities to alleviate the general rigors/dangers the members encounter when carrying out transaction to distant market places. Consumer and marketing cooperative have not been very successful due to problems surrounding them. There would be a better and more effective society if they had formed themselves into cooperatives registered according to law. These are because of the predominance of illiteracy. They lack the education and enlightenment programme which have helped to enhance the level of performance and understanding of what consumer cooperative is all about.

However, the consumer co-operative societies in Nkwere local government area concerned with the empowerment of members whose coherence and vitality are derived from the concept of service to members and to the community. Consumer co-operative societies in Nkwere loca government area continue to exist because of the unfair prices charged by the middlemen, which was beyond the reach of income earners. However, the various consumers co-operative societies in Nkwere local government area came as a result of exploitation in the economic system, commodities were not sold in good weight and measures, standard were not kept, prices of commodities were not fair, and exploitation existed in different forms.

Furthermore, because of the above irregularities, the people of Nkwere local government came together (those with common economic interest)to look for ways to improve their standard of living. It therefore led to the formation of various consumer co-operatives in Nkwere local government, with the existence of these consumer co-operative societies in Nkwere, income per capital of people was increased and the co-operatives have come to rescue the people and have contributed to the development of the economy of the people.

Therefore, in Imo State where the research was carried out, the activities that was conducted is to know the Role of Consumer Co-operative in Economic Development.

1.3 Statement of Problems

Investigation revealed that the problems faced by the consumer cooperative in Nkwere local government area. Nkwere local government area as a geographical reference for this project has some factors which affects the consumer cooperative society. They as follow:

1. Lack of trust among it’s members i.e. there is no trust among the consumer cooperative members in Nkwere local government area.
2. Incompetence in the executive of consumer cooperative of Nkwere local government area.
3. Lack of capital to carry out large scale retail trading and transactions in Nkwere local government area.
4. There is stiff competition from low lost traders in Nkwere local government area. There are equally other sources which sell consumer goods at cheaper rates. Consumers cooperative were unable to withstand this competition.
5. Management problems – Inefficiency which led to the wrong people being chosen as the right one. The rudiment nature of bookkeeping might turn to stealing/diversion of funds by manipulation of fraud.

1.4 Aim and Objectives of Study

The aim of the study is to find out the numerous roles, which consumer co-operative societies play towards the economic development of Nkwere local government area. In achieving this aim, the following specific objectives were laid out as follows:

1. To point out the needs and importance of consumer co-operative societies in the present Nigeria as practiced by the consumer co-operative societies of Nkwere local government area of Imo State;
2. To observe if the members of consumer co-operative societies farewell in the society as a result of the movement;
3. To study the needs and possibilities of increasing the numbers of co-operative societies in Nkwere local government area;
4. To critically examine the impact which consumer co-operative societies play in promoting the economic growth and development of Imo State; and
5. To examine the various ways by which the numerous problems facing the consumer co-operative societies in Nkwere local government are solved.

1.5 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

• Are the consumer co-operative societies in Nkwere the only organization that ensure the education of its members?
• Is it true that activities of consumer co-operative societies have reduced too much dependency of imported goods?
• Does the role of consumer co-operative societies have significant effect in the economic development?
• Has rural-urban migration become a thing of past because of activities of consumer co-operative societies?
• Is there any mutual co-operation among the members of consumer co-operative societies?
• Does the action of consumer co-operative societies have positive influence on its members?
• Does dishonesty and corruption hinder the activities of consumer co-operative societies?
• Is it true that members of consumer co-operative societies cannot survive without the existence of consumer co-operative societies?
• To what extent do consumer co-operatives societies help in reduction of crime through the creation of employment opportunities?
• What are the main objectives of consumer co-operatives in Nkwere local government area of Imo State?
• What are the advantages which members of consumer co-operative societies enjoy?
• What are the major problems which consumer co-operatives have been facing seriously?

1.6 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis One

• H0: The roles of consumer co-operatives societies have no significant effect on economic development.
• H1: The roles of consumer co-operative societies have significant effect on economic development.

Hypothesis Two

• H0: The actions of consumer co-operative societies have negative influence on its members.
• H1: The actions of consumer co-operative societies have positive influence on its members.

1.7 Significance of Study

The significance of the study generally means the important of the study. This study of consumer co-operative societies has been of great impact in the area of the study.

1. The study intends to explore how consumer co-operative can contribute to the economic well being of the people.
2. To ascertain the relevance of consumer co-operative society.
3. To add to existing volume of literature in co-operative society.
4. The study becomes more significant at this time that Nigeria economy is uncertain. It will help to create greater awareness among students, members and enhance business partnership or advantages of forming consumer co-operative to run business instead of sole proprietorship.

1.8 Scope of Study

The scope of the research is focused on the Role of Consumer Co-operative in Economic Development using Nkwere Local Government in Imo State as a case study.

1.9 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
2. Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this project work. There were lots of information needed from the staffs of this establishment to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
3. Research material: availability of research material is a major setback to the scope of the study.
4. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
5. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

1.10 Definitions of Terms

Below are the following terms, which are found in this write up and in order to ensure the readers understanding of the write up.

Co-Operative: A self help organization formed by the either consumer or producers of goods and services. It is formal to provide service for its numbers.

Consumer Co-Operative Societies: these are organization formal formed to supply member household with a suitable assortment of consumer goods of good quality and reasonable price.