Co-operative Societies in SS1 Commerce: Meaning, Types & Benefits

Subject: Commerce

Class: SS1
Term: Third Term
Week: 2
Topic: Co-operative Societies

Behavioral Objectives

By the end of the lesson, students should be able to:

1. Define co-operative societies.

2. Explain the history and formation of co-operative societies.

3. State the characteristics of co-operative societies.

4. List and describe various types of co-operative societies.

5. Highlight the functions of each type of co-operative.

6. Discuss the importance of co-operative movements in Nigeria.

Keywords:

Co-operative, Society, Thrift, Producer, Consumer, Wholesaler, Credit, Retailer, Multipurpose

Instructional Materials:

• Pictures of various co-operative activities

• Sample co-operative registration form

• Video/documentary on co-operative societies in Nigeria

• Chart showing different types of co-operatives

Content Breakdown

1. Definition of Co-operative Society

A co-operative society is a voluntary association of individuals who come together to meet their common economic, social, or cultural needs through a jointly owned and democratically controlled enterprise.

2. History of the Co-operative Movement

• Originated in Rochdale, England in 1844 by a group of 28 weavers and artisans (Rochdale Pioneers).

• The movement spread worldwide, including Nigeria in the 1930s.

• The first Nigerian co-operative law was passed in 1935.

• The movement promoted mutual assistance and economic empowerment.

3. Formation of a Co-operative Society

To form a co-operative:

• Minimum of 10 members (varies by type).

• Members share a common goal (e.g., saving, buying goods, production).

• Registration with the State Ministry of Commerce or Co-operatives Department.

• Draft a constitution and elect officials.

4. Characteristics of Co-operative Societies

• Voluntary membership

• Democratic control (one member, one vote)

• Equal contribution and benefit-sharing

• Promotion of mutual help and economic interest

• Limited liability of members

• Surplus shared according to patronage

• Operates on ethical and fair-trade principles

5. Types of Co-operative Societies

i. Consumer Co-operative Society

• Members pool funds to buy goods in bulk directly from producers

• Goods are sold to members at lower prices

• Helps to avoid middlemen

Example: Community bulk-buying society

ii. Producer Co-operative Society

• Made up of people engaged in production (e.g., farmers, artisans)

• Share tools, equipment, and market together

• Helps reduce production costs

Example: Farmers’ collective farming group

iii. Wholesaler Co-operative Society

• Wholesalers unite to buy goods directly from producers

• Aim to stabilize prices and improve supply chain

Example: Wholesalers’ distribution union

iv. Retailer Co-operative Society

• Retailers pool resources to buy goods in bulk

• Aim to enjoy economies of scale

• Compete with large chains

Example: Local shop owners forming an alliance

v. Thrift and Credit Co-operative Society

• Members save money regularly

• Loans are given at low interest

• Promotes savings culture and financial inclusion

Example: Teachers’ or civil servants’ savings group

vi. Multi-purpose Co-operative Society

• Combines the features of other types (saving, buying, selling, farming, etc.)

• Operates multiple business activities under one body

Example: University staff multi-purpose co-op society

Class Activities

1. Group students to design and role-play a co-operative society based on a chosen type.

2. Invite a local co-op leader to discuss real challenges and successes.

3. Display charts showing different types and functions of co-operatives.

   

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4. Students research local co-operatives and present findings.

Embedded Core Skills

• Teamwork and Leadership

• Research and Presentation

• Decision Making

• Financial Literacy

Reference Materials

• Lagos State Scheme of Work

• Senior Secondary Commerce Textbooks

• International Co-operative Alliance

• Nigeria Co-operative Federation

Evaluation Questions

Fill in the blanks (Choose the correct option a–d):

1. A co-operative society is based on ______ control.
   a) capitalist
   b) democratic
   c) monopolistic
   d) aristocratic

2. The Rochdale Pioneers started the movement in ______.
   a) Nigeria
   b) America
   c) England
   d) Canada

3. A co-operative where members save and borrow is called ______.
   a) producer co-op
   b) retailer co-op
   c) thrift and credit
   d) wholesaler co-op

4. The first Nigerian co-operative law was passed in ______.
   a) 1844
   b) 1935
   c) 1954
   d) 1999

5. The principle of one member, one vote shows that co-operatives are ______.
   a) exclusive
   b) democratic
   c) elitist
   d) free market

6. Retailer co-operatives are formed by ______.
   a) wholesalers
   b) producers
   c) consumers
   d) small shop owners

7. In a producer co-op, members are mainly involved in ______.
   a) selling
   b) saving
   c) production
   d) politics

8. Surplus in co-operatives is shared based on ______.
   a) wealth
   b) family size
   c) patronage
   d) nationality

9. Multi-purpose societies combine ______.
   a) only savings and loans
   b) multiple co-operative activities
   c) only production
   d) only retailing

10. A major aim of co-operative society is ______.
    a) individual wealth
    b) economic empowerment of members
    c) increasing tax
    d) government control

Class Activity Discussion – FAQs

1. What makes co-operative societies different from companies?
   They are owned and managed by the members for mutual benefit, not profit.

2. Do you need a lot of money to start a co-op?
   No, members contribute small amounts collectively.

3. Is co-operative membership open to everyone?
   Yes, as long as you share the common goal of the group.

4. Can a co-operative society make profit?
   Yes, but profit is shared among members or reinvested.

5. What happens if a co-op makes losses?
   Losses may be shared or managed by adjusting activities or support.

6. Are co-operatives taxed?
   Yes, but they may receive tax relief depending on laws.

7. What is the role of the government in co-operatives?
   They regulate, register, and may support co-ops with training or funding.

8. Can co-operatives get bank loans?
   Yes, with proper records and collateral.

9. Do co-ops have managers?
   Yes, but decisions are made collectively or by elected officials.

10. Are school-based co-ops allowed?
    Yes, especially thrift co-ops among staff or students.

Conclusion

• Teacher revises all key points using board summaries.

• Students explain in their own words what a co-operative is.

• Written evaluation is marked, feedback is given.

Assessment (Short Answer Questions)

1. Define co-operative society.

2. When did the co-operative movement start in Nigeria?

3. List three characteristics of a co-operative society.

4. Mention four types of co-operative societies.

5. What is the main aim of a thrift and credit co-operative?

6. Who were the Rochdale Pioneers?

7. State one difference between a company and a co-operative.

8. What type of co-op would market women form?

9. Describe a multi-purpose co-operative.

10. How does a consumer co-op benefit its members?

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