Cooperative As A Means Of Promoting Employment Opportunities And Poverty Reduction In Nigeria (A Case Study Of Idemili North L.G.A)


Cooperative As A Means Of Promoting Employment Opportunities And Poverty Reduction In Nigeria (A Case Study Of Idemili North L.G.A)


The aim of this research is to sum up the roles of cooperative as a means of promoting employment opportunities and poverty reduction in Nigeria, and to examine how unemployment has been reduced through cooperative in In idemili North Local Government Area of Anambra State. The course of this investigation, research objectives and hypothesis were formulated. Both primary and secondary data were collected and data were then presented in a tabular form. In the first chapter, the researcher was able to highlight the statement of problem as to known the prevalent problems militating against the increase of employment and the reduction of poverty in Idemili.The data interpretation and analysis gave the following findings. In conclusion, the researcher deemed it necessary that every hand must be on desk to encourage the establishment of cooperative enterprise.


1.0  INTRODUCTION                                               1

1.1  Background of the Study                                          3

1.2  Statement of the Problems                               5

1.3  Objectives of the Study                                    7

1.4  Significance of the Study                                         9

1.5  Research Questions                                          12

1.6  Scope and Delimitations of the Study                 13

1.7  Definition of Terms                                                 15


2.0  REVIEW OF RELATED LITERATURE                     18

2.1  Definition of Cooperative                                         19

2.2  Definition of Employment                                        20

2.3  Definition of Poverty Reduction                          21

2.4  Cooperative Contribute to Employment

Opportunities and Poverty Reduction                  22

2.5  Three Main Ways/Roles of Private Sector

and Government in Strengthening Cooperatives

to Poverty Reduction                                        25

2.6  Causes of Unemployment                                        26

2.7  Causes of Poverty                                            27

2.8  How Cooperative Can Eradicate Poverty and

Create Employment Opportunities                      29

2.9  Benefits of the Cooperative Society                           33



3.1  Research Design                                              35

3.2  Area of Study                                                  36

3.3  Population of the Study                                    38

3.4  Sample Size                                                    38

3.5  Source of Data                                                41

3.6  Method of Data Collection                                 42

3.7  Administration of Instruments                                  42

3.8  Method of Data Analysis                                   44

3.9  Test of Hypothesis                                           45



INTERPRETATION OF DATA                               46

4.1  Presentation of Data                                        46

4.2  Analysis of Data                                              46

4.3  Interpretation of Data                                      55



AND CONCLUSION                                           62

5.1  Summary of Findings                                       62

5.2  Recommendations                                           65

5.3  Conclusion                                                      67

Bibliography                                                    68

Appendix                                                        71

Questionnaire                                                  72



Employment opportunities and poverty reduction is one of the largest problem in Nigeria. In this study the researcher’s intention is to sought for and know the causes of unemployment and poverty; and how cooperative can help to promote its generation in Idemili North Local Government Area, Anambra state, Nigeria.

The researcher wants to know to limitations and problems causes by unemployment and poverty in the state and also in Nigeria as a whole; the ways in which the masses and the community will be reached and developed; that is by cooperatives providing jobs for the masses, providing credits, loans, government grants to the people (poor) in the rural area; in other to help in their agricultural farm or small petty traders.

We should note that; almost thousands of graduated individuals are in search of jobs, which leads to low standard of living in the community and to the country, which causes poverty in the country.

Cooperative is a basis for overall transformation of citizenry social and economic problems.

According to Berko (1987:29) cooperative may be defined as a voluntarily and democratic association of persons, with variable membership and variable capital whose members pool themselves and their resources together on mutual and self help basis to form a business enterprise which seeks to solve the socio-economic problem(s) of these members by them in their capacity as either the owned/owner/customer or owned/employees of the cooperative enterprise.

Poverty being a rural phenomenon where the majority of the people live in most developing countries, the mechanisms to be used should target the recipients. One of these methods today is to form a group of associates, which are used widely today to organize people democratically to form cooperatives or association.

Unemployment and poverty reduction will be improved with the aid of the cooperatives society of the community and of the country which  will bring out the different types of jobs through either agricultural extension providing jobs and helps in farm input like pesticides, herbicides, fertilizers, chemicals used in eradicating the waste from the soil, for the masses, and therefore reduce poverty in the country which leads to higher , good and stable standard of living in the economy, community and also the nation as a whole Nigeria.


Employment and poverty started during the origins, one of the macro effects of cooperatives in employment generation and reduction of poverty. In 1844, when the pioneers founded the Rochdale cooperative one of the greatest fear was prevailing unemployment for fear of unemployment was so palatable that their objects were littered with ways and means of averting unemployment   and under-employment which was a thing in industrial revolution era.

Today, poverty has ravaged Nigeria and her citizens, after years of democracy, many Nigerians still scavenge from the heaps of trash. Graduates of 15 years standing and more still roam the streets searching, looking for white collar   jobs. This paper is a descriptive survey, which involves the collection of data using Umuoji community in Idemili North as a case study of Anambra state.

Form the background of the study, it should be understood that cooperative society exists mainly in villages like in Idemili North Local Government Area to carter for socio-economic needs of the people and serving as an instrument for change.

But, it is surprising that despite the existence of cooperatives in the said locality the various communities that constitute to local government are still suffering from poor standard of living, but, because of the involvement of the cooperative society who have helped the communities in providing some facilities and help in job opportunities, creation for the masses.


In this section, the researcher focuses on the prevalent problem that has led to the causes of unemployment and poverty with particular reference to Idemili North Local Government Area in Anambra state. The advent of democracy in many states of the federation marked increase in poverty, as many civil servants cost their jobs. The cost of education went high, today, many Nigerians cannot have access to education, which is one of the basic economic necessities of human existence.

The cooperatives take its effect in curbing unemployment and eradicating poverty. It is veritable that the target population of poverty reduction schemes of the government are the same target of the cooperative movement. In the year 2000, the federal government budgeted N10 billion to curb unemployment, in the year 2001, the federal government budgeted of 20 billion to deal with unemployment. Yet the number of unemployed have continued to rise, without having a stop.

However, the fact remains that no country can succeed in providing a reasonable standard of living for her citizens. It is now obvious that the only left option is to adopt socio-economic model to mutual self-help whereby unemployed individuals can voluntarily join together to achieve a common goal through the formation of cooperative enterprise and therefore reduce poverty in the country.

Cooperatives we know plays multiple roles as institutional framework for allocating scarce resources, stimulating economic growth and enhancing economic welfare. It raises the income level of the people by providing income earning opportunities. Many reasons have been given for this critical situation concerning jobs, and such reasons include rapid growth of population in our country, the movement of capital to the cheap labour and the impact of new technology.

These problems militating against the increase of employment and the eradication of poverty in Idemili North are as follows:

  1. Poor living condition
  2. Decline of effective and efficient management
  3. Unavailability of jobs
  4. Poor services rendered by the middlemen
  5. Close down of industries and companies
  6. Demand fall in export-oriented industries.


This research has the major objectives of findings in comparative terms on how cooperatives create job opportunities and reduce poverty in Nigeria and the economic benefits associated with Idemili North Local Government Area, Anambra state.

The objectives that made the researcher into this study are as follows:

  1. To find out the major causes of unemployment and poverty in Idemili North of Anambra state and also in Nigeria
  2. To find a way or strategy that can help eliminate these causes; thereby bringing the cooperatives in.
  3. To know the limitations or the problems of the causes of unemployment and poverty in communities, states and in the country.
  4. To help in the creation of cooperative small scale industries.
  5. To identify the support for modern faring investment for industrial development and expansion of market through cooperative movement.
  6. To examine the volume of employment opportunities created by the cooperatives.
  7. To make recommendations on how to improve cooperative society; in order to meet the demand of reducing unemployment and poverty in the community.
  8. To provide an opportunity of self-determination and empowerment of poor people.
  9. To find out possible project cooperative can be involved in.
  10. To help provide adequate finding to government in charge of cooperative.
  11. To help ensure that at least 25 percent of Nigerian enroll in cooperative.
  12. To find out ways to provide substantial grants, aids, subsides and guaranteed loans to societies.
  13. To help in the establishment of workers or industrial cooperatives.


The significance of this study is to achieve a great success in contributing the little the researcher can, if not a great deal in solving the causes of employment opportunities and reducing poverty in the community, which in turn will bring about immense growth, development and good standard of living for the poor people especially in the rural areas in Nigeria with particular reference to Anambra State.

It is as well hoped that this research work will definitely enlighten the community, staffs and management of organizations, the government especially in Idemili North of Anambra state.

There is the need for reducing unemployment thereby creating employment opportunities and reducing poverty in our society and Idemili North in particular, the only way is through the cooperatives. This analytical study shows the extent of some particular proposals for solutions to these problems of employment opportunities, and poverty eradication in Idemili North Area has serve a basis offering, informed suggestions for improvement on its social economic development and growth.

It is envisaged that the findings, suggestions, recommendations of this study will be beneficial to all members, non-members of cooperative society, to Idemili North, the government and the society as well. Specifically, the research will go a long way to encourage people to join to cooperatives.

To the scope of this study, discussion in and the possible means of efficient implementation will be based on the followings:

  1. Increase personal and national wealth through complaining against waste, it also impact the element for democratic control of economic activities.
  2. Enhance economic, social and cultural situation of strata within limited resources and opportunities as well as to promote their initiatives.
  3. Improve social condition and provide social services in the area of housing, education, electricity, health and communication.

Therefore, since cooperative thinks about the enhancement of their members as well as being their prime ideology; it has to work towards the achievement of this target and the growth thereby; creating job opportunities and poverty reduction to achieve its own. This study will serve as a means to tackle most of the inherent problems effectively, it will help the society at large to be on the favourable bide, if the cooperative come in thereby promoting employment opportunities and reducing poverty in the community in particular Idemili North of Anambra state  and the country (Nigeria).


  • What are the numbers of people employed by the cooperatives in Idemilii North?
  • How can cooperatives help in tackling rural poverty?
  • How can the cooperatives help in the expansion of market and modern farming investment for industrial development?
  • What are the problems of promoting employment opportunities and reducing poverty in Idemili North?
  • What are the projects cooperatives can involve in?
  • What are the ways of self-determination and empowerment of poor people?
  • What are the ways of cooperative in creating small scale industries?
  • How can the cooperatives provide adequate funding through the government?
  • How can the cooperatives help in enrolling Nigerians for at lease 25 percent?
  • Why do people form a joint co-operative societies?
  • What are the problems of cooperative societies in Idemili North?
  • What are the viable cooperative society?
  • What are the socio-economic benefits of belonging to cooperative society?
  • How do they help in the establishment of workers or industrial cooperatives?


The scope of this research in Idemili North Local Government Area of Anambra state. The research is to determine the impact and effect of promoting employment opportunities and reducing poverty through the cooperatives with specific emphasis on “IDEMILI NORTH THRIFT AND LOANS SOCIETY”.

The research covers the operation of the cooperatives with the intensive of finding out to what extent they can create employment opportunities and reduce poverty in the community being Umuoji in Idemili North as précised. In this study of this nature, one would like to accumulate data from many areas. But, in view of length of time allowed for this research, such a wide range sample study was almost external difficult.

Beside there are many other problems that stammed up during the research work in which some of them are as follows:


As a student, there was not enough capital to spend in transport and fact finding and borrowing of necessary literature that would have helped in the writing of this research work.


The respondents, not all were cooperative, some brought out non cooperative attitude which resulted in not giving all the information required about their operations. Inadequacy of data or availability of limited materials. Most of the officers visited were not on sit despite several visitations made by the researcher. Also the workers in the different department visited were as well reluctant in answering some of the questions asked. All this problems not withstanding did not prevent the continuation of the research work.


  • Cooperatives: Is an autonomous association of persons united voluntarily to meet its social, economic and cultural needs and aspirations with their variable capital and resources to pool out their resources through a democratic and controlled enterprise.

According to Amahalu (2005:2) Cooperative is defined as an association usually incorporated with economic aims, formed by or for persons or cooperations, having common goals and needs, approximately equal voice in management, making approximately equal or proportionate services and benefits from it.

  • Poverty: A rural or urban phenomenon, where by the standard of living of the people are very low.

ILLIFFE (1992), see Okeke (2001) defined poverty “as an inescapable commotion of physical want”.

Other social scientist do not see poverty as just physical but rather more dimensional. This school believe that poverty has the dimension of environmental, economic, intellectual and physical. Environmental poverty refers to issues to form like poor housing, etc.

While economic poverty refers to insufficient income to meet material needs.

  • Unemployment: According to Udu et al (1989:75): Unemployment is defined as a situation in which persons capable and willing to work are unable to find suitable paid employment, one cannot say precisely the number of unemployed people in order country (Nigeria).
  • Employment: Employment may simple be defined as the people between the bracket of labour force and are willing and able to work.

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