How To Start A Cooperative Society In Nigeria[center][/center]

It takes 10 people to start a cooperative society in Nigeria and if the members are not up to ten, then all the members are enough to legally register the cooperative society.

How to start a cooperative society is one of the most frequently asked questions within establishments and businesses where there are no cooperatives.

Cooperative societies over the years have proven to be a vital part of the Nigerian economy and they have become the go-to for many as they compete in popularity and in rendering financial help to banks.

Over the years, cooperative societies have formed the bedrock for petty traders, business people and corporate organizations because cooperatives are known to support their members financially in ways commercial banks won’t.

It is always a relief to find and join a cooperative that meets one’s unique needs. There are different types of cooperative organizations and they are defined by the needs they resolve or the role they play in society.

The Popular Types of Cooperative Societies
Cooperative for Farmers: These are mainly (small scale) farmers coming together to find solutions to their common needs. The cooperative is designed to help these farmers to make better productions and get access to markets and other resources needed for upscale.


Marketing Cooperative Societies: The marketing cooperative societies are set up for the sole purpose of helping members to find the right market for their products and services.
Credit Cooperative Societies: They provide and offer members loan facilities which are far more convenient than commercial banks.
Producer Cooperative Societies: This cooperative is designed to help producers get the best resources for increased productivity.
Consumer Cooperative Societies: They are claimed to be the oldest form of cooperative organization. The main objective of consumer coop is to protect the rights and interests of the consumer in the market as they eliminate middlemen and other intermediaries making access to the market easier and the cost of getting products and services cheaper.
Cooperative for Real Estate Societies: The main objective of real estate or housing cooperative societies is to solve housing problems. They are designed to make it easier for members to purchase or own properties (Landed or Houses) easier.
Multi-Purpose Cooperative Societies: These are the most popular cooperative societies in Nigeria because they are designed to meet several needs of the members.
It is easily understandable that cooperative societies are formed based on the need and problems they intend to solve.

Several types of cooperatives haven’t been mentioned but these are the most popular cooperative societies that are found in Nigeria.

How to Start A Cooperative Society In Nigeria
It only takes the consent of 10 adults to start and register a cooperative society. The members will raise the capital through shares to acquire their distinct identity as they embark on the registration process as required by the constitution of Nigeria.

Cooperative societies are formed by volunteering members with common needs and operate democratically.

A cooperative organization could be a private business organization which is owned and controlled by the members. The products, services or supplies of the cooperative are primarily used by the members.

The Nigerian Cooperative Societies Act provides the specified requirements needed for cooperative societies to be registered and how they should be governed.

The Requirements Needed For The Registration of Cooperative Societies In Nigeria
The name proposed to be used for the cooperative
The proposed location/address of the cooperative
The cooperative’s objective is fully spelt out
The rules and regulations that guide the members and it include terms of membership, entrance fee, penalty fee, etc.
Four copies of the proposed rules and regulations (By-laws) guiding the cooperative
The Letter of Intent
The strategy or description defines how the cooperative will operate.
The certified copy of the resolution that was passed at the first meeting of the cooperative by the members and the province cooperative officer (PCO)
The official stamp duty of the cooperative society will be tendered after the name of the cooperative has been approved.
The Process of How to Start a Cooperative Society in Nigeria

How to start a cooperative society in Nigeria is pretty clear but its registration makes it a legal financial institution and that’s the major thing when setting up a coop.

Once the payment of ten thousand Naira (N10, 000:00) has been made for the registration of the cooperative society, a letter of recognition will be issued to you as a license for three years before the registration certificate is given that makes the cooperative society a legal entity.

Related: Cooperative Inspectors In Nigeria
The operations and formation of coops are guided and stipulated clearly in the constitution of the country and for Nigeria, it is stated under the Nigeria Cooperative Society Act.

The Nigeria Cooperative Act stipulates that before a cooperative can be registered it must meet these requirements:

It should be a limited liability society
Its objectives must be to promote the socio-economic interests of the members as stated in the principles of cooperative by the International Cooperative Alliance.
It should show that it will facilitate the cooperative principles
The regulations, operations and laws that guide the “how to start a cooperative society in Nigeria” and empower it for full operation are stated clearly in the constitution of Nigeria.

The Nigeria Cooperative Society Act makes provisions on how the directors are elected or chosen and the information that is needed to set the cooperative to function lawfully.

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The Cooperative society Act makes provisions for both a federal and state director. If the cooperative has a federal director, a seal of such device should be approved by the president of the federation and if it has a state director the seal should be approved by the state governor making it fully recognized by the law.

Step By Step Registration Procedures of a Cooperative Society In Nigeria

The application to be made to a registered cooperative society in Nigeria is made to the office of the Director of Cooperatives.
The Application must be signed by the minimum and required the number of members as stated by the Nigeria Cooperative Society Act. (10 person minimum for multipurpose cooperative society, 50 persons for Agricultural cooperative society, 20 persons for credit and savings cooperative society and all members for smaller cooperative society).
Members of the cooperative are given forms to fill out while name search availability is being done for the approval of a name for the cooperative.
Once the name is approved, The stamp of the cooperative bearing the logo and other documents that have been listed above are submitted for their verification and subsequent approval.
A letter of approval is issued by the Director of Cooperative upon verification and satisfaction of the information previously provided. This letter is valid for three years and it authorizes the cooperative to operate as a legal entity.
A certificate of registration is issued along with the By-laws of the cooperative.
The registration of the cooperative society makes it possible to buy properties (movable and non-movable) of any type and description, enter into contracts, and institute and defend suits and other legal activities as they are within the confines of the constitution.

Eligibility Qualification of Members Before it Can be Registered as A Cooperative Society in Nigeria
15 years of and above are only eligible to become members of the cooperative
18 years and above are eligible to become board members
The members of the cooperative must have common needs
All members must have an occupation that is in line with the primary cooperative society.
All members should be able to acquire shares and pay the fees.


Locations of Registration of Cooperative Society in Nigeria
The registration of cooperative societies in Nigeria can be done at the federal level at the

Office of National Civil Registration, Abuja (Sokode Crescent by Michael Okpara Street, Zone 5, Wuse, Abuja).
Federal Ministry of Justice, Abuja (New federal Secretariat Complex, 10th floor, wing lB(1001 – 1009), Block 1, Shehu Shagari Way, Abuja).
Abuja High Court of Justice
Just Call (09-5234988-9 or 09-5230667-9)
At the state level, the Ministry of Commerce can help with the process or direct you properly because the location is not the same for the different states in Nigeria.

Conclusion
Cooperative societies are designed to help the common needs of the members and also to meet the socio-cultural and economic needs at large.

With this in mind, setting up cooperatives is primarily for the benefit of all members involved and the benefits should be well stated.

The registration of the cooperative society makes it a legal entity having the backing of the law means the cooperative can do business within the ambience of the constitution.

Cooperatives societies in Nigeria are governed and regulated by the Nigerian Cooperative Societies Act which also makes provision for its registration at the Office of National Civil Registration.

For more information on how to start a cooperative society in Nigeria and how to register it, contact us by sending an email on WhatsApp:+234805 415 4865

I am just seeing this now.

I had already paid for this last month through someone.

@Ibechris, Can you chat us up on our WhatsApp? Or send us your details so we can reach out to you to get a few information across

ibechris:
I am just seeing this now.

I had already paid for this last month through someone.

Can you reach us so we can talk about a few things with you?

We would love to if you can reach us or send us your contact to reach out to you.

Nice write-up

Please note, registeration at the federal level is under the purview of the Federal Director of Cooperative at the Ministry of Labour and Employment (formerly at the Federal Ministry of Agriculture)

jstemmanex:
Nice write-up

Please note, registeration at the federal level is under the purview of the Federal Director of Cooperative at the Ministry of Labour and Employment (formerly at the Federal Ministry of Agriculture)

Thanks for the response we are glad to have it.

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