COOPERATIVE SOCIETIES AND PROMOTION OF SUSTAINABLE DEVELOPMENT IN SOUTHWEST NIGERIA

Abstract

This study explored the role of Cooperative Societies in fostering sustainable development in
Southwest Nigeria, with emphasis on their contributions to poverty reduction and community
development. Despite various policy efforts, the region still faces significant socio-economic
challenges, such as high poverty levels and social inequalities. Cooperative societies, known
for their potential to address these issues, are underutilized due to inadequate funding and poor
management. Data were collected from 384 cooperative members across the six state capitals
in the Southwest region using a survey design, and multiple regression analysis was employed
to analyze the data. The results revealed significant positive relationships between Cooperative
Societies and poverty reduction (R² = 0.937) as well as community development (R² = 0.909).
Cooperatives improved financial access, supported entrepreneurship, and invested in essential
areas such as infrastructure, education, healthcare, and housing, promoting social cohesion.
To enhance their impact, the study recommends strengthening financial support through
agencies like the Central Bank of Nigeria (CBN) and the Bank of Industry (BOI) by providing
low-interest loans and grants tailored to cooperative initiatives. Governance and transparency
should be improved through regulatory frameworks, financial audits, and capacity-building
programs for cooperative leaders. Additionally, cooperative societies should partner with local
governments, NGOs, and international agencies such as the United Nations Development
Programme (UNDP) to expand community development initiatives. Partnerships should target
education, healthcare, and infrastructure projects, with state governments establishing
cooperative liaison offices to coordinate efforts.