Co-operative Societies and Public Enterprises for SS1 Commerce

Subject: Commerce

Class: SS1
Term: Third Term
Week: 3
Topic: Co-operative Societies (Continued) and Public Enterprises

Behavioral Objectives

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

  1. List and explain the advantages of co-operative societies.

  2. Highlight the disadvantages and problems facing co-operative societies in Nigeria.

  3. Define public enterprises.

  4. Explain the formation and management of public enterprises.

  5. Identify the sources of capital for public enterprises.

  6. Distinguish between co-operative societies and public enterprises.

Keywords:

Co-operative, Public Enterprise, Government Ownership, Capital, Management, Advantage, Disadvantage

Instructional Materials:

  • Charts comparing co-operatives and public enterprises

  • Infographics on advantages and challenges

  • News reports about public corporations in Nigeria (e.g., NNPC, NPA, PHCN)

  • Diagrams of capital sourcing

A. Co-operative Societies (Continued)

1. Advantages of Co-operative Societies

  • Mutual help: Members work together to uplift one another.

  • Easy to form: With minimal capital and members.

  • Limited liability: Members’ personal assets are protected.

  • Democratic management: One member, one vote.

  • Access to credit: Thrift co-ops make borrowing easier.

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  • Stability in pricing: Bulk buying reduces market price fluctuations.

  • Social responsibility: Co-operatives reinvest in communities.

  • Educational benefits: Members are often trained in finance and leadership.

  • Improved bargaining power: Members collectively negotiate better deals.

  • Government support: Many co-ops receive financial or technical aid.

2. Disadvantages of Co-operative Societies

  • Poor management: Elected officials may lack experience.

  • Lack of commitment: Members may lose interest over time.

  • Limited capital: Funds are sourced mostly from members.

  • Internal conflicts: Power struggles or disagreements may arise.

  • Slow decision-making: Democracy can delay action.

  • Dependency on loans: Some rely too much on external borrowing.

  • Fraud and misappropriation: Poor record-keeping encourages theft.

3. Problems Facing Co-operatives in Nigeria

  • Illiteracy among members

  • Weak government supervision

  • Inadequate training of officials

  • Corruption and mismanagement

  • Low patronage or interest from youth

  • Poor record-keeping

  • Insufficient funding from members or institutions

B. Public Enterprises

1. Meaning of Public Enterprises

Public enterprises are businesses owned, financed, and managed by the government to provide essential services to the public. They are also known as parastatals or government corporations.

Examples:

  • Nigerian Ports Authority (NPA)

  • Power Holding Company of Nigeria (PHCN)

  • Nigerian Railway Corporation

  • Nigerian National Petroleum Corporation (NNPC)

2. Formation of Public Enterprises

  • Established by an act of parliament or government decree

  • Operate under government ministries or agencies

  • Appoint board of directors or management teams

  • May receive support from international partners (e.g., World Bank, IMF)

3. Management of Public Enterprises

  • Managed by government-appointed boards

  • Headed by a Managing Director or General Manager

  • Supervised by a relevant ministry (e.g., Ministry of Power)

  • Operate under government policy but may have autonomy in operations

4. Sources of Capital for Public Enterprises

  • Government grants and subventions

  • Loans from banks and international donors

  • Internal revenue (profits from operations)

  • Public-private partnerships (PPP)

  • Sale of shares (if partially privatized)

Class Activities

  1. Group Task: Compare and contrast co-operative societies and public enterprises using a table.

  2. Case Study: Students research a local public enterprise and present its functions and funding.

  3. Debate: “Co-operative societies benefit the grassroots more than public enterprises.”

Embedded Core Skills

  • Critical Thinking

  • Economic Literacy

  • Presentation Skills

  • Civic Responsibility

Reference Materials

Evaluation Questions

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

  1. One major advantage of co-operatives is ______.
    a) private control
    b) personal gain
    c) mutual help
    d) political influence

  2. The democratic principle in co-operatives is expressed as ______.
    a) majority wins
    b) voting by wealth
    c) one member, one vote
    d) CEO rule

  3. Poor management in co-operatives is mainly due to ______.
    a) too much capital
    b) hiring professionals
    c) untrained officials
    d) advertising cost

  4. An example of a public enterprise is ______.
    a) Dangote Cement
    b) PHCN
    c) MTN
    d) Access Bank

  5. Public enterprises are formed by ______.
    a) shareholders
    b) associations
    c) business plans
    d) government acts

  6. Public enterprises are managed by ______.
    a) farmers
    b) bankers
    c) appointed boards
    d) unions

  7. One problem of co-operative societies in Nigeria is ______.
    a) tax exemption
    b) excessive competition
    c) illiteracy
    d) rapid development

  8. Capital for public enterprises can be sourced from ______.
    a) member dues
    b) foreign loans
    c) supermarkets
    d) school fees

  9. Public enterprises provide ______.
    a) luxury goods
    b) essential services
    c) private property
    d) entertainment

  10. A co-operative that combines saving and selling is ______.
    a) single-purpose
    b) producer
    c) multi-purpose
    d) consumer

FAQs – Class Discussion

  1. Are co-operative societies owned by the government?
    No, they are owned by members for mutual benefit.

  2. Can a public enterprise make profit?
    Yes, but its main aim is to provide essential services.

  3. Why do some public enterprises fail?
    Due to corruption, poor management, and political interference.

  4. Are there successful public enterprises in Nigeria?
    Yes, like NNPC and NPA, though some have faced challenges.

  5. What’s the difference between a co-op and a public enterprise?
    Co-ops are member-owned; public enterprises are government-owned.

  6. Can co-operatives get government support?
    Yes, through grants and training programs.

  7. Do public enterprises pay tax?
    Yes, but sometimes they receive tax relief.

  8. What happens to profit in a co-operative?
    It is shared among members or reinvested.

  9. Can a co-op become a public enterprise?
    Unlikely, as their ownership structures differ.

  10. Why do we need both co-operatives and public enterprises?
    To balance community empowerment with national development.

Conclusion

  • Teacher revises all topics using key terms and examples.

  • Students answer oral and written questions.

  • Assignments are marked, and feedback is given to improve understanding.

Assessment (Short Answer Questions)

  1. List 3 advantages of co-operative societies.

  2. Mention 2 problems co-operatives face in Nigeria.

  3. Define public enterprises.

  4. Name 3 sources of capital for public enterprises.

  5. State 2 differences between co-operative societies and public enterprises.

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