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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Co-operative societies as a form or type of business organization comes about when people with common, interest unit themselves into a group, financial and controlled by them for the purpose of achieving their goals. We believe from many others, that co-operative societies started in Nigeria in the early 20th Century. It should be noted that the life patterns of various communities in the country showed some traits of co-operative societies before the advent of modern co-operative societies. This is understandably so because most communities in Nigeria and Africa in general had (and other still have) series of association youth association etc. These organizations, communal farming through collective efforts, construction of rural roads extension of credit facilities to members etc, many of the modern co-operative societies have the above objectives. According to Chief Obukada Achoja, from (MPC) Bulleting  review (169:p.49) said that co-operative societies started Ethiopia last  local  government area of Delta state, which was created from Ethiopia local government area of Bendel state of them Midwestern Region of Nigeria, in 1968 with the formation of multipurpose co-operative societies (M.P.C.S.) The late emergence of co-operative societies in Ethiopia last and other parts of the mid west region was as a result of the administrative  policy adopted by the former colonial masters. The policy was such that did not permit undue influence in the activities of the mid-west region. The recent increase in the formation of new co-operative society in the country is a  clear indication that many people and institutions alike have found co-operative societies of a useful tool in the furthering different interests. In the fourth National Development toward the growth and development of the co-operative sector in the country. Towards this end government policy would be aimed at:-

i.            Strengthening the movement in general through assistance in cash and kind, particularly in the area of provision of storage facilities and shops.

ii.          Increasing the number and membership of  co-operative societies.

iii.        Relying increasing on the societies for the distribution of essential consumer goods.

iv.         Strengthening the manpower support services traditionally available to the co-operative societies.

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