0. 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. 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. 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. 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. 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 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. Robert Owen (1771–1858), a Welshman who made his fortune in the cotton trade, is considered as the father of the cooperative movement. Investment Partnership The Legacy Cooperative Society also provides investment partnership for entrepreneurs who require financial support. You can check them out and your own homework on them too. 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. Also read: Nigeria plans to start a bridge Bank to aid struggling lenders. Now lets see what the law requires before you can register a cooperative society in Nigeria. Cooperatives gives you the platform to network. The following are some of the important advantages of co-operative societies. 2. Admonishing cooperative societies in Lagos to embrace electronic voting for their periodic election of officers into key administrative positions, Atomode stated … Along these, every one of the individuals from the cooperative society is profited. Do not forget to check out the two cooperative houses i mentioned earlier (BERSAMA and Prime Asset Cooperative). But cooperatives is as regimented that once you save you cannot withdraw your money except you are terminating your membership. 3. 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. Your email address will not be published. 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. 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. Later, these cooperative societies began providing intermediation to members (World Bank, 2000). What is however, new is the reawakening among citizens to use the model for home ownership and wealth creation. Also obtain information on the following aspects: But above all, it is fundamental to analyse the. Exemption from Taxes and Duties. 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. In Nigeria, … 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. 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 … 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. Financial cooperatives such as credit unions offer sustainable finance for locl people excluded from the traditional… The ultimate objective is to help members buy land, own a house or an apartment, invest profitably in real estate and other opportunities. 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. Benefits of Cooperative Societies. Advantages and guarantees of housing cooperatives. Like i said, they come highly recommended, with a proven track record and trustworthiness. However, it is one that is less traveled by many, despite having been around for a long time. Although, cooperative society in Nigeria is nothing new as it has being existing five decades before now. Posted by: NREH However, since a strict check & balance method is being employed, this occurrences rarely happen. 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. 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. Everyone wants to survive as regards basic needs – food, shelter and clothing. in Co-Operative Society, Real Estate News The membership fee is kept low so that everyone would be able to join and benefit from cooperative societies. The cooperative movement began in Europe in the 19th century, primarily in Britain and France. 1) Since cooperative societies are business organizations, the management should be made up of people with some experience with business management. It’s just a temporary warehousing such money to be disbursed. There are three (3) Major categories of cooperative society in Nigeria namely; 1. in Co-Operative Society, Real Estate, Real Estate Articles 2) Cooperatives have started employing qualified employees to carry out basic functions, so this should help properly shape the overall structure of cooperatives. TYPES OF COOPERATIVE SOCIETIES IN NIGERIA A sample of faculty and staff members was s elected ... Benefits of Registering a Co-operative Society 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. Voluntary organization. Agricultural Cooperative Society (Also known as Farmers Cooperative) – Meant for farmers. Those needs may vary from individual to individual, but there is always an underlining factor that binds these people together which is usually survival. 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. University Cooperative Society, Ota, Ogun State and Lead City University Cooperative Societ y Ibadan, Oyo State, as a means of data collection. 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. Upon assessment, if the Director is satisfied that the society has complied with the provisions of the … 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. So you can transit from being in paid employment to being self-employed.”. Other forms of cooperative may fall under those categories. 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. 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. It is an autonomous association of persons united voluntarily to meet their common economic, social & cultural needs and aspiration through a jointly owned organization. Posted by: NREH Best Cooperative Societies are needed in our everyday businesses. 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. Section 23 (1) (b) of the Companies Income Tax Act, CAP. Meaning you can network. 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. C21, and Section 26 (1) (c) of the Capital Gains Tax Act, CAP. The surplus created by the cooperative society association is shared in a fair way among individuals. 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. We all need credits to pay rents, meet short term needs, buy electronic appliances, school fees and the rest. 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. 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. 3) Members these days are having a better understanding of what cooperatives truly are, and thus are acting approp… Any person with common interest can become a member. The second thing you benefit from cooperative as an individual is access to loans either in cash or in the form of goods. 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. Four beneficiaries received N416,000 each from the society, a… 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. For example, agrarian cooperative society in the city of Ibadan (1904), the cooperation of growers Agege (1907), and the Association of farmers, EGBA (1910). 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. There is always dividends that is paid which a lay man will call returns on investment. 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. -ownership of the land or estate they claim to own. Required fields are marked *, 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, Online Property Listing is Yet to Become the Magic Pill in Nigeria, Preventing Building Collapse Should Start From The Foundation – Gladys Okoro, NIA President Calls For Professional Architects Representation In Development Control Offices, Estate Surveyor attributes quacks to the rate of unemployment in Nigeria, How I spent my entire savings on a house I can’t live in, Court overturns property forfeiture linked to Bala Mohammed. 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. Investments are secured. Multi-purpose Cooperative Society (General Cooperative) – Meant for general purpose. 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. 1. 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. 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. The co-op is membership-based, with membership granted by way of a share purchase (initial membership fee) in the cooperative. It means that all individuals have equal rights in dealing with the undertakings of the association. It is easy to join. Required fields are marked *, Pros and Cons of Joining a Housing Cooperative Society In Nigeria, Housing Cooperative Society In Nigeria – The Breakdown. 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. It is no longer news that only two per cent of Nigerians are investing in real estate, while the remaining 98 per cent either lack the financial capacity or knowledge to take advantage of benefits that real estate sector has for the economy. About NNMCSL. So credit is one major benefit members benefit from. 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