PROPERTY ATTRIBUTES

UNIT 3 THE HISTORY AND STRENGTH OF CONSUMER

shops can be categorized into two; those caring for the urban dwellers and those looking after the rural dwellers.

Meanwhile the indigenous consumer cooperatives which operated like village shops had some problems in the east. It was the Gorkida consumer cooperative established in 1942 with 200 members that became most successful.

The story in the Western Nigeria was not different from what was obtainable in other parts of the country. The experiment to use marketing unions to undertake trading in consumer goods failed woefully.

3.2 Organisation and Management of Consumer Cooperative

The responsibility of managing cooperatives in entrusted to the management committee or board of directors. The members of the committee are elected through a democratic process of voting. A general meeting is summoned and notice of the meeting is sent out in good time to all members informing them of the meeting, the time and place where the meeting will take place. During the meeting, members are allowed to discuss all matters concerning the election. Every member qualified to vote must be allowed to exercise his right without hindrance. It is one man one vote. The members must also[have the right to be involved in other decision making such as determining the credit limit of the society and members appointment to certain categories of staff (top management).

Furthermore internal democracy is another key part of cooperative management. This allow members to delegate power to certain officials and still retain the power to withdraw same through a resolution.

Therefore, to ensure democratic control, the members must have access to certain books and documents of the society, have the right to information and be allowed to exercise their control. In addition, periodic and final accounts and reports should be made available to the members. The accounts and operations of the societies must be audited and the report submitted to members.

3.3 Functions of Consumer Cooperatives

The effects of the activities of consumer cooperative had micro economic effects with socio-political implications. Onah (2000) believed that on the social aspect the principles of democracy and equity according to which cooperative societies operated created a sense of dignity in the members. Irrespective of a member‟s age, sex, race or social background, irrespective of the volume of business transactions a

member undertakes, when members meet in their cooperative meeting to take a decision on the fortunes of the cooperative, they meet as persons on the basis of equality, one man one vote. This cooperative principle is structured to afford every member a sense of pride and importance which may take the drabness out of his life.

When consumer cooperative operate efficiently, they have the effect of raising the standard of living of the members/customers, making the retail trade competitive. Some of the specific functions of consumer cooperatives are:

1) Ensuring fair and reasonable price for good and services 2) Ensuring the scale of goods with accurate weight and measure 3) Making goods available to a cross section of the community 4) Ensuring the sale of pure and unadulterated goods

5) Helping the government in its distribution policy

6) Protecting consumer interest especially during periods of scarcity of goods, trade malpractices by traders and uncontrollable inflation.

7) Helping to educate consumers 8) Ensuring competition.

9) Offering credit sales to their members.

3.3.1 Problems of Consumer Cooperatives

The question often asked is why do consumer cooperatives do better in advanced economies than in developing countries such as Nigeria.

Yahaya (2001) is of the view that consumer cooperatives in Nigeria have not done well because her economy is predominantly agriculture driven. This can be explained in terms of internal and external factors:

 Little need for consumer cooperative

 Low purchasing power

 Higher overhead cost and stiff competition from small retailers

 Unavailability of some cooperatives due to their smallness

 Poor management and organisation

 Lack of supportive loyalty of members and general awareness on the part of the public

 Over-dependence of societies on private manufacturers and producers for the supply of goods

 Over-dependence of the country as whole on importation

 Over-dependence on manufactured goods instead of on basic need items most of which can be produced locally

 Too much government involvement in the affairs of cooperatives

 Corruption of government cooperative officials and cooperative officers and employees

 Stiff competition from well managed big stores

 Poor financing.

4.0 CONCLUSION

In this unit we have learnt the history and strength of consumer cooperative societies in Nigeria. You are now also conversant with the functions and problems of consumer cooperatives. Discussions on the organisation and management of consumer cooperatives have helped thrown more light on how they can be better managed for successful delivery on their mandate.

5.0 SUMMARY

This unit was focused on the history and strength of consumer cooperative in Nigeria. The section successfully traced the historical evolution of consumer cooperatives and also explained the functions they perform. The unit further discussed the problems confronting them and also explained how they are organized and managed.

6.0 TUTOR-MARKED ASSIGNMENT

1. Explain the functions of consumer cooperative in Nigeria

2. Describe the challenges confronting consumer cooperative societies

3. How are consumer cooperatives organized and managed?

7.0 REFERENCES/FURTHER READINGS

Okechukwu, E. (2001). Making Cooperative societies viable through effective management. Nigeria Journal of Cooperative Economics and management 1(1) Jan – Jun.

Okeke, E.U (2001). Cooperative Movements: Meaning, Origin and Ideology. Nigeria Journal of Cooperative Economics and management 1(1) Jan – Jun.

Onah, R. (2000). Financing cooperatives and fund management.

Contemporary issues in Local Government Administration and Rural Development in Nigeria. Computer Edge Publishers, Enugu.

Umebali, E., Akubuilo, C., Onugu, C., &Emejulu, G. (2006). Readings in cooperative: Economics and Management. Computer Edge Publishers 2^nded.

Yahaya, I. (2001). The Cooperative Movement and poverty alleviation programme. Nigerian Journal of cooperative studies 1(1).

UNIT 4 ORGANISATION STRUCTURE OF