Developing an Original Cooperative Sector Development Index for Nigeria

The absence of a standardised, theoretically grounded composite index for measuring cooperative sector development across Nigerian states constitutes a fundamental gap that limits comparative analysis, policy evaluation, and investment targeting in the Nigerian cooperative sector. This study developed an original Nigerian Cooperative Sector Development Index (NiCSDI) drawing on cooperative economics theory, development measurement methodology, and extensive stakeholder engagement. A multi-phase index construction methodology was employed, comprising theoretical foundation review, indicator identification, weighting, and validation. The theoretical foundation review synthesised cooperative economics theory on sector vitality dimensions across 70 published sources. Indicator identification involved structured Delphi consultations with 30 cooperative economics experts across two rounds, converging on 28 indicators across five dimensions: financial depth, governance quality, service scope, membership inclusivity, and institutional support environment. Principal component analysis on pilot data from ten states established dimensional validity and refined indicator selection. Indicator weights were derived using the analytic hierarchy process with input from twenty additional experts. NiCSDI was computed for all 36 states and the FCT using 2023 data, generating the first national cooperative sector development ranking for Nigeria. The index revealed substantial inter-state variation, with a range of 23.4 to 78.6 on a 100-point scale. Southern states generally scored higher, but notable high-performing northern outliers suggested that policy environment and agricultural sector strength moderate the income-cooperative development relationship. The NiCSDI constitutes an original methodological and analytical contribution to cooperative development measurement.

Keywords: cooperative sector development index, Nigeria, measurement methodology, Delphi method, cooperative economics