Assessment of the Effects of Cooperative Mergers on Member Benefits in Oyo State

Cooperative mergers are increasingly proposed as solutions to the problem of undercapitalised and fragmented cooperative organisations in Nigeria, but their effects on member benefits require careful evaluation to ensure that consolidation serves member rather than purely administrative interests. This study assessed the effects of cooperative society mergers on member financial benefits and satisfaction in Oyo State, South West Nigeria. A descriptive comparative survey design was adopted. Six cooperatives that had undergone formal mergers within the preceding five years were identified from the Oyo State Cooperative Registry. A total of 180 members from these merged cooperatives were surveyed and compared with 180 members from non-merged cooperatives of similar size and type in the same LGAs, covering Ibadan North, Ogbomosho North, and Ibarapa Central. Financial benefits assessed included available credit, dividend amounts, and savings returns. Overall satisfaction was measured on a validated five-point Likert scale. Independent samples t-tests and chi-square were employed. Results showed that members in merged cooperatives accessed significantly higher loan amounts (mean 145,000 naira versus 92,000 naira in non-merged cooperatives; p < 0.001) and reported significantly higher dividend payments. However, satisfaction with democratic processes was significantly lower in merged cooperatives (p < 0.05), suggesting that mergers improved financial capacity but reduced perceived member voice. The study recommends merger guidelines that preserve branch-level governance structures to protect democratic participation alongside financial consolidation benefits. Keywords: cooperative mergers, member benefits, Oyo State, financial consolidation, cooperative governance