Human wants are so innumerable. Beginning from the basic necessities of life such as food, clothing and shelter, other secondary demands compels mankind to explore other avenues to create wealth for future use. From farmer, business man/woman, fisherman, the story is the same as everyone aspires for better life which can only be realized through meaningful investments. Muhtar Kent once said: “Without investment, there will not be growth, and without growth, there will not be employment’’. Invariably, the need to expand the frontier of meeting ever increasing compelling needs has brought about various investment innovations.
It is bad to live from hand to mouth, worse still it is dangerous for one not to plan for future. As age increases, status changes come with demand for scarce resources, hence the need to be strategically positioned for financial stability. Among various finance sources that have helped many to fulfill their dream of attaining financial solidity is cooperative society. Apart from savings which usually takes time to gather enough for specific projects, cooperative societies have fast tracked the process of building investment for many families.
In the communities of low income and medium income earner, cooperative societies have been made famous by its abilities to supplement/support members’ capacity to acquire property for domestic and commercial purposes. The advantage of pulling resources together for the good of all have made tremendous impact in the growth of members’ financial, by boosting their purchasing power of subscribing members.
According to a popular biblical saying, ‘a good man leaves inheritance for his children’s children’. But then, how can a man whose income is barely sufficient to meet basic needs of the day leave inheritance or secure a better future for his children, not to talk of grandchildren?
Recently, a friend had lofty plan about how to cope with several financial issues ranging from ever increasing house rent, children’s school fees to other domestic burdens. He discovered that his ‘take-home’ could not really take him home. Every time there was opportunity to take loan facility from bank officials who hover around to offer succor, he was first to apply, thus placing himself under further financial strains. This continued until a friend advised him to join a cooperative society where he could save certain percentage of his monthly salary to a point where he would draw double of his savings for investment that would bring about passive income. And alas, through this simple advice brought about an incredible financial transformation to his family.
Among other avenues of investments, cooperative societies continue to play prominent role as investment channel for those that subscribe to them. Despite its popularity among many, few understand the way it operates while those that have taken advantage of it continue to explore enormous opportunities it offers. It has come to be associated to a commonwealth of people’s resources for the business, economic and improved welfare of its members. According to International Co-operative Alliance, ‘’a cooperative society 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.’’
Historically, cooperative society came to being as a result of people who have similar needs came to find a way to augment their meager salary. To this end, Rochdale pioneered the first cooperative society in England in 1844, where 28 men (weavers and skilled workers in other trades) established a shop in which they sell goods. Increased pressure from changing market demand system became a driving force in running the cooperative. From paltry selection of butter, sugar, flour, oatmeal and few candles, within few months expanded into selection of tea, tobacco and later transformed into conglomerate of high quality products. Spanning over 200 years of existence, it has remained vibrant.
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In Nigeria, cooperative societies play significant roles in the liberation of individuals and families from poverty, especially low income earners who see it as the way to economic salvation, invest and improve their welfare. Many wouldn’t have acquired enduring assets if not for the advantage of bulk purchases made available by the societies. Different savings plans provided members options products to access. Cooperatives services now range from ordinary saving which qualifies members for loan and target savings which is intended for specific projects. Many lives would have been lost to curable diseases with children out of school if not for the support of cooperative societies’ contingency facility.
In Lagos alone, the collective capital base of cooperative societies has increased to over N152billion with increasing membership base of over 2million. The State government has in the last three years been developing template for cooperative societies in the State to be used as instruments of economic growth and business prosperity that is capable of investing in critical sectors of the economy.
In view of the perception of land as major asset in Lagos State, many cooperative societies succeeded in acquiring estate for its members, while some others are developing housing estates, extending beyond the frontiers of the State into neighboring Ogun State, thus complementing Lagos State government’s effort in addressing housing deficit of the State.
Similarly, while young entrepreneurs are being encouraged to align themselves into multipurpose cooperative societies to access credit facilities without collateral have resulted in appreciable upscale in the number of cooperative societies duly registered in the state to 1045, consequently making it possible for the State government to monitor and support their activities.
Capacity of practitioners and drivers of cooperative societies in the State got a boost with a total of 1,607 so far being trained at Lagos State Cooperative College to enhance best practice. The Lagos State Cooperative College bill recently signed into law is expected to further consolidate on the capacity of the college which has hitherto been training to transform into a full-fledged diploma awarding institution which will commence admission before the end of year 2018. This laudable development in the State will continue to place demand on the various practitioners to up their games through diploma certification available.
It is imperative for all tiers of government in the country to continue to provide enabling environment and intervention to support cooperative societies. It is no doubt a sure way of creating and securing a better future for its members as its benefits are just there to explore. It is important for all and sundry to subscribe to a vibrant cooperative society for an assured future while the unregistered ones should be integrated into relevant in their best interest.
