Those needs may vary from individual to individual, but there is always an underlining factor that binds these people together which is usually survival. 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. Admonishing cooperative societies in Lagos to embrace electronic voting for their periodic election of officers into key administrative positions, Atomode stated … 2. So you can transit from being in paid employment to being self-employed.”. 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. Right now, one of the surest routes to owning a home in Nigeria is to go the cooperative society way. 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. The membership fee is kept low so that everyone would be able to join and benefit from cooperative societies. It means that all individuals have equal rights in dealing with the undertakings of the association. The approval procedure requires close scrutiny of every applicant.Cooperatives want to be sure that the people who come to join as shareholders are responsible people that can meet up with their financial obligations and would not default on debts. The cooperative movement began in Europe in the 19th century, primarily in Britain and France. It is a known fact that not all Nigerians can meet up to their demands and necessities of life. 3. 2) Cooperatives have started employing qualified employees to carry out basic functions, so this should help properly shape the overall structure of cooperatives. The co-op is membership-based, with membership granted by way of a share purchase (initial membership fee) in the cooperative. Meaning that whatever savings I have kept in those financial institutions is not actually a savings. 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. 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. 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. Robert Owen (1771–1858), a Welshman who made his fortune in the cotton trade, is considered as the father of the cooperative movement. Sanwo-Olu flags off reconstruction of Ibeju Lekki-Epe highway, Street urchins and louts almost frustrated my building project – Man laments, Developers lament stalled housing projects in Abuja, COVID-19 Presents Investment Opportunities In Real Estate, REDAN hails FG’s private sector economic sustainability plan, Urhobo group urges Buhari to intervene in illegal sales of lands by military, Developers embrace unitisation to fund real estate, Property owners, valuers extol Sanwo-Olu on review of Land Use Charge Act, NIOB Demands Professionalism in Building Construction, Induct Fellows, Risks to Avoid When Using Leverage in Real Estate, Experts seek increased investment in real estate, Enugu State housing corporation set to unveil Zik Museum, REDAN pushes for development of property data, 7 Tips On Finding the Best Tenants For Your Property. 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. In the last five decades or so, the unbridled increase in housing deficiency across the country has led to the emergence of housing cooperative societies in Nigeria, although they still represent a low percentage from the point of view of the cooperative movement. Investments are secured. C21, and Section 26 (1) (c) of the Capital Gains Tax Act, CAP. The head of department was the registrar of co-operatives of societies with his headquarters in Kano State. Now lets see what the law requires before you can register a cooperative society in Nigeria. 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. For example, agrarian cooperative society in the city of Ibadan (1904), the cooperation of growers Agege (1907), and the Association of farmers, EGBA (1910). 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. But cooperatives is as regimented that once you save you cannot withdraw your money except you are terminating your membership. Other forms of cooperative may fall under those categories. It is easy to join. The following are some of the important advantages of co-operative societies. So credit is one major benefit members benefit from. 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 sample of faculty and staff members was s elected 3) Members these days are having a better understanding of what cooperatives truly are, and thus are acting approp… 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. We all need credits to pay rents, meet short term needs, buy electronic appliances, school fees and the rest. Voluntary organization. Posted by: NREH Advantages and guarantees of housing cooperatives. 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. -possible withdrawals and interest rates. You can check them out and your own homework on them too. 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. Welcome to MEMCOS Our benefits cannot be over-emphasized. -ownership of the land or estate they claim to own. Required fields are marked *, Pros and Cons of Joining a Housing Cooperative Society In Nigeria, Housing Cooperative Society In Nigeria – The Breakdown. It is an autonomous association of persons united voluntarily to meet their common economic, social & cultural needs and aspiration through a jointly owned organization. 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. 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. 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. It is important to ensure that the cooperative society you’re looking to join is duly registered at the Corporate  Affairs Commission C.A.C and other relevant authorities. 1. 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. However, it is one that is less traveled by many, despite having been around for a long time. A cooperative society is a voluntary association of individuals, united by the common bond, who have come together to pursue their economic goals for their own benefits. The first attempts to create different types of cooperative society in Nigeria were aimed at the peasants. However, since a strict check & balance method is being employed, this occurrences rarely happen. -the amount of the necessary financial contribution. TYPES OF COOPERATIVE SOCIETIES IN NIGERIA 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. Do not forget to check out the two cooperative houses i mentioned earlier (BERSAMA and Prime Asset Cooperative). Like the ATM cards enables you to make payments online, purchases and the likes through that savings account. The t-test Keying into this opportunity, a number a reputable cooperative society in Nigeria, notably BERSAMA Multipurpose Society and Prime Asset Cooperative, are currently taking the lead to explore the model for accommodation needs of its members and general public. Your email address will not be published. Upon assessment, if the Director is satisfied that the society has complied with the provisions of the … Any person with common interest can become a member. Multi-purpose Cooperative Society (General Cooperative) – Meant for general purpose. 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. 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. ... Benefits of Registering a Co-operative Society 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. 1) Since cooperative societies are business organizations, the management should be made up of people with some experience with business management. Like i said, they come highly recommended, with a proven track record and trustworthiness. The surplus created by the cooperative society association is shared in a fair way among individuals. History of cooperative society in West Africa and Nigeria. 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. 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Essentially helps people imbibe a savings culture. Best Cooperative Societies are needed in our everyday businesses. Another is that each shareholder (member) in the entity is granted the right to enjoy dividends from joint investments, have access to affordable landed properties, apply for loans for their building projects among other benefits. Benefits of Cooperative Societies. In Nigeria, … The housing cooperative society system in Nigeria is however set up in a way that offers access to both of strategic these resources. The ultimate objective is to help members buy land, own a house or an apartment, invest profitably in real estate and other opportunities. on loan repayment to promote cohesion in upcoming co-operative societies. They are formed mainly to tackle a particular need and of course, to make a profit. The second thing you benefit from cooperative as an individual is access to loans either in cash or in the form of goods. Also obtain information on the following aspects: But above all, it is fundamental to analyse the. Although, cooperative society in Nigeria is nothing new as it has being existing five decades before now. The membership of a cooperative society is open to all. Investment Partnership The Legacy Cooperative Society also provides investment partnership for entrepreneurs who require financial support. In closing, i would like to say that many shy away from procuring properties because they lack the right knowledge or connection needed to get good and valued properties in exchange for their money. Fair distribution of overflow. If one of the member defaults on any of the payments, whether it is the co-op maintenance, taxes, loan repayment or contributions, the other co-owners are also affected. Four beneficiaries received N416,000 each from the society, a… Essentially helps people imbibe a savings culture. There is always dividends that is paid which a lay man will call returns on investment. 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. The MTNN Employees Multipurpose Cooperative Society (MEMCOS) was borne out of the desire of the generality of employees of MTN Nigeria to organise themselves into "society" to pool resources together for the benefit … 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. With a cooperative society that has members of about 200 -300 or more, it means that whatever it is you are doing as an individual, you can showcase such products with the members of the cooperative. Personally, i think the reason for this is because not a lot of people are aware of the benefits inherent in the system, and that is exactly what we would be talking about today. 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. in Co-Operative Society, Real Estate, Real Estate Articles 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. It is therefore safe and recommended to procure a land, building or the like through a cooperative society. 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. There a dubious cooperatives out there, so there is a need to be careful and carry out your personal investigations well before committing.Do your homework on the available cooperatives offering ‘amazing’ opportunities because some are really not well positioned to deliver on their promises.This could be for reasons of bad, fraudulent and/or ignorance leadership, lack of an expert in the real estate field able to assist them in their project. There are three (3) Major categories of cooperative society in Nigeria namely; 1. We give out loans at designated interest rates for entrepreneurs and members of the society who need an alternate source for quick business loans. 0. Agricultural Cooperative Society (Also known as Farmers Cooperative) – Meant for farmers. It’s just a temporary warehousing such money to be disbursed. What is however, new is the reawakening among citizens to use the model for home ownership and wealth creation. in Co-Operative Society, Real Estate News 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. 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. Exemption from Taxes and Duties. January 13, 2016 Meaning you can network. 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. Cooperatives gives you the platform to network. This way, cooperative societies would be better managed and even more profitable. 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. Financial cooperatives such as credit unions offer sustainable finance for locl people excluded from the traditional… Saving and Credit Cooperative Society (Also known as Microfinance Cooperative) – Meant for members that contribute fund together and lend to members for personal or business purpose. 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. Everyone wants to survive as regards basic needs – food, shelter and clothing. 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. A cooperative society is an organization which is owned and run jointly by its members, who share the profits or benefits. 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. Later, these cooperative societies began providing intermediation to members (World Bank, 2000). May 3, 2018 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. About NNMCSL. Also read: Nigeria plans to start a bridge Bank to aid struggling lenders. They also have the powers to hold movable and immovable property, enter into contracts, and perform such functions or actions as stated in their constitution. Posted by: NREH Along these, every one of the individuals from the cooperative society is profited. 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. 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