Study of the Role of Cooperative Societies in Poverty Alleviation in Benue State

📖 ABSTRACT/OVERVIEW

Agricultural and multipurpose cooperatives are important vehicles for collective economic action in rural communities, and examining their role in poverty reduction in Benue State provides evidence for cooperative development policy in North Central Nigeria. This study examined the role of cooperative societies in poverty alleviation among farming and trading communities in Gboko, Vandeikya, and Katsina-Ala Local Government Areas, Benue State. A survey was conducted among 220 cooperative members and 100 non-members matched for community and socioeconomic characteristics. Data covered income, asset ownership, food security, credit access, and social capital indicators. Independent samples t-tests and logistic regression were applied. Results showed that cooperative members had significantly higher monthly income (N42,300 versus N28,600, p < 0.001) and lower poverty probability than non-members. Cooperative membership increased access to production inputs, marketing services, and group credit for 78.6 percent of members. The mean cooperative loan amount was N85,000, significantly affecting productive investment capacity. Cooperative members showed 34 percent lower food insecurity rates. However, cooperative governance was weak, with transparent accounting practised in only 43 percent and democratic election of officers in 61 percent. The study concludes that cooperative membership significantly reduces poverty indicators in Benue State but is constrained by governance challenges. Recommendations include mandatory cooperative governance training, registration with the Benue State Cooperative Agency, and integrating cooperatives into state agricultural extension services. Keywords: cooperative societies, poverty alleviation, Benue State, rural development, collective action

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Departments# Economics