Voluntary organization. Like i said, they come highly recommended, with a proven track record and trustworthiness. There are three (3) Major categories of cooperative society in Nigeria namely; 1. 3. Because it is jointly owned, there is an elected board of directors that must approve each potential member.This is an essential part of the co-op’s governing, for the benefit of the people who are already members and share ownership. in Co-Operative Society, Real Estate, Real Estate Articles However, since a strict check & balance method is being employed, this occurrences rarely happen. The membership of a cooperative society is open to all. This way, cooperative societies would be better managed and even more profitable. A primary advantage of a cooperative society in Nigeria is the pooling of the members’ resources so that their buying power is leveraged, thus lowering the cost per member in all the services and products associated with owning a home. So until the economy is fully back on its feet and the low/middle income earner can live comfortably well, the housing cooperative society may continue to be an interesting formula for the average Nigerian to be a landlord. May 3, 2018 But cooperatives is as regimented that once you save you cannot withdraw your money except you are terminating your membership. Welcome to MEMCOS Our benefits cannot be over-emphasized. For example, agrarian cooperative society in the city of Ibadan (1904), the cooperation of growers Agege (1907), and the Association of farmers, EGBA (1910). Benefits of Cooperative Societies Similar to an LLC, Cooperative Societies are of limited liability and have a legal personality separate from that of its members. A primary advantage of a cooperative society in Nigeria is the pooling of the members’ resources so that their buying power is leveraged, thus lowering the cost per member in all the services and products associated with owning a home. Best Cooperative Societies are needed in our everyday businesses. It is therefore safe and recommended to procure a land, building or the like through a cooperative society. -the amount of the necessary financial contribution. Also obtain information on the following aspects: But above all, it is fundamental to analyse the. Exemption from Taxes and Duties. Advantages and guarantees of housing cooperatives. What is however, new is the reawakening among citizens to use the model for home ownership and wealth creation. It is an autonomous association of persons united voluntarily to meet their common economic, social & cultural needs and aspiration through a jointly owned organization. Required fields are marked *, Pros and Cons of Joining a Housing Cooperative Society In Nigeria, Housing Cooperative Society In Nigeria – The Breakdown. Those needs may vary from individual to individual, but there is always an underlining factor that binds these people together which is usually survival. In Nigeria and around the world, cooperative societies have been an effective way for people to exert control over their economic livelihoods for over 160 years. theortically speaking that i am a cool dude and u all should bow down to me u mortal pheasant, Your email address will not be published. A housing cooperative is a type of cooperative whose social objective is to provide its members with housing,  premises and other real estate, acquire land to build and urbanize the acquired land for habitation. The early cooperative societies in Nigeria were established to facilitate cocoa farming which led to the establishment of the Cooperative Registrar of the Colonial Government in 1935. ... Benefits of Registering a Co-operative Society C1, exempts from taxation all the profits and gains of a registered Co-operative Society, from all trade or business that such a Co-operative Society engages in, on behalf of its members. Four beneficiaries received N416,000 each from the society, a… Fair distribution of overflow. -ownership of the land or estate they claim to own. in Co-Operative Society, Real Estate News According to Amana (1978) in Nigeria, the co-operative society department was included in the port-folio of the ministry social welfare and co-operative. Admonishing cooperative societies in Lagos to embrace electronic voting for their periodic election of officers into key administrative positions, Atomode stated … That simply means that when you have saved for a year, the cooperative is bound to share what we call surplus to its members depending on what you have saved. So you can transit from being in paid employment to being self-employed.”. 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This society provides short-term financial support or aid to its members when they need it and they have been termed to be very helpful at all times. If you save in a commercial bank, you still may not reach the requirement of getting a loan there but with the cooperative, as long as you adhere to the rules and regulations and you can save consistently in a minimum period prescribed in the bylaw, you are sure of getting a credit. These are 5 benefits that cut across a typical cooperative society in the Nigerian context: Savings may not be as effective as you want it to be with other methods of saving. Since the inauguration of Cooperative Villa, Badore, CHOIS Estates in Abijo and Agbowa in Ikorodu, there has been a rebirth of cooperative housing models among civil servants, police, Armed Forces and private corporations to meet accommodation needs of members. It is easy to join. Agricultural Cooperative Society (Also known as Farmers Cooperative) – Meant for farmers. Nigerian Navy Multi-purpose Cooperative Society Limited (NNMCSL) was established and incorporated in order to serve as a vehicle for the approval of the Nigerian Navy Micro-Finance Bank Limited which is a mandatory requirement by the CBN. It’s just a temporary warehousing such money to be disbursed. Investments are secured. In Nigeria, … By Jacob Ajom The high point of the 2nd AGM of the Nigerian Security and Civil Defence Corp (NSCDC) Lagos Multipurpose Cooperative Society which held Thursday, December 3 at its secretariat in Alausa, was the disbursement of monetary settlement to five retired members of the society. NSCDC Cooperative Society disburses benefits to retired members in Lagos The high point of the 2nd AGM of the Nigerian Security and Civil Defence Corp (NSCDC) Lagos Multipurpose Cooperative Society which held Thursday, December 3 at its secretariat in Alausa, was the disbursement of monetary settlement to five retired members of the society. Do not forget to check out the two cooperative houses i mentioned earlier (BERSAMA and Prime Asset Cooperative). For instance, the consumer co-operative society’s main goals and plans of his society are to form arrangement for the pecuniary benefit and the improvement of the social and domestic condition of its member by raising a sufficient amount of capital in shares of two naira each. University Cooperative Society, Ota, Ogun State and Lead City University Cooperative Societ y Ibadan, Oyo State, as a means of data collection. Multi-purpose Cooperative Society (General Cooperative) – Meant for general purpose. 0. Right now, one of the surest routes to owning a home in Nigeria is to go the cooperative society way. These kinds of cooperative societies are very common in Nigeria, you find them in every state and lots of people join because of the benefits. However, returns are expected to be submitted to the Director of Cooperatives at intervals determined by the Director or such agency that regulates Cooperative Societies. Availability of loans at low rate of interest to either purchase a land, house or possibly develop a land or make renovations to procured buildings. The following are some of the important advantages of co-operative societies. Everyone wants to survive as regards basic needs – food, shelter and clothing. The membership fee is kept low so that everyone would be able to join and benefit from cooperative societies. It is a known fact that not all Nigerians can meet up to their demands and necessities of life. The system of owning a house through a housing cooperative society in Nigeria has its own perks and advantages on a good day, but it also has its disadvantages. In evaluating agricultural credit utilization by cooperative farmers in Benue State, Nigeria, Okwoche et al (2001) observed a significant difference between the agricultural output and income of farmers’ before and after the utilization of loan acquired. Later, these cooperative societies began providing intermediation to members (World Bank, 2000). So credit is one major benefit members benefit from. Section 23 (1) (b) of the Companies Income Tax Act, CAP. Cooperative allows you set aside a certain amount of money while you are still in gainful employment which allows you to fall back on that savings you have and run with it for other businesses you may want to do on your own. The head of department was the registrar of co-operatives of societies with his headquarters in Kano State. Upon assessment, if the Director is satisfied that the society has complied with the provisions of the … Although, cooperative society in Nigeria is nothing new as it has being existing five decades before now. About NNMCSL. In the area of acquisition of properties, cooperatives come in handy to assist such process in ease of payments and other benefits attached to being a member. The t-test Now lets see what the law requires before you can register a cooperative society in Nigeria. The cooperative movement began in Europe in the 19th century, primarily in Britain and France. 2. Posted by: NREH The ultimate objective is to help members buy land, own a house or an apartment, invest profitably in real estate and other opportunities. However, it is one that is less traveled by many, despite having been around for a long time. January 13, 2016 Cooperatives gives you the platform to network. 1 Comment, “Cooperative Society is an institution where two or three people from different walks of life come together basically for a purpose of meeting each others needs. So what a cooperative does is regardless of where you work or what tribe you are from, as long as you have identified yourself as someone who wants to actually not feed with his ten fingers alone, being able to have something that will help you in the future, a cooperative is the right place.”, “It is also one of the most primitive tools of saving. A cooperative society is an organization which is owned and run jointly by its members, who share the profits or benefits. Other forms of cooperative may fall under those categories. Essentially helps people imbibe a savings culture. Benefits of Cooperative Societies. 2) Cooperatives have started employing qualified employees to carry out basic functions, so this should help properly shape the overall structure of cooperatives. But before we proceed into what the likely benefits of this system are, I would like to break down what an housing cooperative society in Nigeria really entails. Robert Owen (1771–1858), a Welshman who made his fortune in the cotton trade, is considered as the father of the cooperative movement. Like the ATM cards enables you to make payments online, purchases and the likes through that savings account. Worried by the huge housing deficit in the country, which is about 17 million, few cooperative societies are now taking the lead in mobilising resources to tackle accommodation challenges while creating wealth through real estate investment. Essentially helps people imbibe a savings culture. 3) Members these days are having a better understanding of what cooperatives truly are, and thus are acting approp… The first attempts to create different types of cooperative society in Nigeria were aimed at the peasants. Along these, every one of the individuals from the cooperative society is profited. The benefit of registering a cooperative society is to be recognized as an entity under the law in Nigeria, so that your dealings will be seen as authentic as no one would love to deal directly with an unregistered company let alone a cooperative society that is unregistered. Your email address will not be published. The story of a cooperative society in Nigeria started in the 30’s of the previous century after the legislative unit passed the bill about the creation of this movement. In accordance with the Lagos State cooperative society laws and regulations, the following are the steps for registering a cooperative society in Lagos State: An application for registration shall be made to the Director of Cooperatives at the Ministry of Commerce, Industry and Cooperatives requesting to be registered as a cooperative society. In Nigeria, Cooperative Societies are regulated by Nigerian Co-Operative Societies Act which is a Federal Law that grants powers to the Governor of each state to establish a Directorate for Cooperatives which will be in charge of registering and regulating cooperatives. They are formed mainly to tackle a particular need and of course, to make a profit. 1) Since cooperative societies are business organizations, the management should be made up of people with some experience with business management. Posted by: NREH The housing cooperative society system in Nigeria is however set up in a way that offers access to both of strategic these resources. 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