OPERATIONAL

GUIDELINES

Dear Cooperators,

The Director and the entire * Non-keeping of statutory books

members of Staff of the of accounts and members before embarking on the
Directorate of Cooperative * Failure to adhere strictly to the procurement of landed properties.
Services, Ministry of Agriculture provisions of the Cooperative Appropriate Search and Legal
and Cooperatives wish you a Societies Law, Cap C 15 of the consultations must also be carried
prosperous New Year. I also use Laws of Lagos State and the out before payment.
this medium to remind you of your registered byelaws of your
duties and obligations to your societies. You are advised to use the services
societies and what are required of of the Legal Officers available at
you by the Cooperative Societies Below, I address these issues one- the Directorate in these
Law, Cap C15 of the Laws of by-one. transactions.
Lagos State, 2003 and your
registered Byelaws. 1. TENURE OF OFFICE: You also must ensure that
Henceforth, this office shall no intending beneficiaries make a
The Directorate is particularly longer allow any elected officer to deposit of between 30 and 50% of
disturbed by the rising incidence of stay in office beyond two (2) terms the cost of land before the society
financial malpractices occasioned or as provided for in their can make the land purchase and
by registered byelaws. take physical possession as soon as
*Sit-tight leadership, possible.
*Purchase of Land and landed 2. INVESTMENT IN LANDED
properties without proper PROPERTIES: 3. KEEPING OF STATUTORY
documentations; It is absolutely essential that you BOOKS: Accountability is a
obtain the consent of all pivotal issue in cooperative
administration; it is therefore

Cooperators in a training programme organized by the Directorate in Lagos recently

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 this year otherwise a fine of Ten required Electoral Guidelines in
Thousand Naira Only (N10,000) consultation with the Directorate.
expedient you keep all statutory shall be imposed on defaulters. After elections, out-going officers
books and records. If you are in are to prepare written Handing
doubt as to what these books and 6. MEETINGS: Meetings Over Notes and ensure proper
records are, please contact your remain the main avenue for taking actions are taken for the in-coming
area officer and supervisors. You decisions in Cooperative officers to take over and continue
can also call any of the telephone Administration. Holding of regular the smooth running of the Society
numbers listed at the end of this ordinary general meeting is without hindrances.
publication. therefore essential for the smooth Both parties must study original
running of your society. It is now copies of Annual Accounts and the
4. RECOVERY OF DEBTS: The compulsory for you to hold such Director’s comments and sort out
Cooperative Law and byelaws are ordinary general meeting at least any outstanding queries therein in
clear on once every quarter. writing as in-coming officers are
this. Irrespective of your position, inheriting both assets and
status and disposition, you are to Annual General Meeting (AGM) liabilities.
pay all debts owed the society in is statutory for all registered
full with interest where applicable. cooperative societies and is to take 8. SUPERVISORY
It is also the duty of elected place once in a year. It must VISITS: Officers of the
officers, especially the Trustees to however be noted that no valid Directorate are expected to pay
ensure full recovery of all debts AGM should be held without an routine visits to your Societies as
owed the society by all members Annual Statement of Accounts part of their regular work schedule,
and non-members. Where they fail duly approved by the Director of at least once every quarter. You
to do this, they shall be held Cooperative Services. are enjoined to cooperate with
responsible for such debts. them whenever they call.

However, where you observe such

visits have not been paid, please
call your Area Officer or the
Director of Cooperative Services
or any telephone numbers provided
at the end of this paper.

9. LICENSED BOOK-
KEEPERS: Only licensed Book-
Keepers will be allowed to post the
books of accounts of co-operative
societies and append their
5. SUBMISSION OF In the event that election of signatures and seals to the
ANNUAL STATEMENT OF Officers would be held at your appropriate places in the Annual
ACCOUNT AND RETURNS: AGM, adequate notice (not less Accounts & Returns Form. Where
It is statutory that societies submit than one month) should be given to such services are rendered in-
their Annual Statement of the Directorate through your house, officers responsible for
Accounts and Returns within the Cooperative Area Office in order such duties are to obtain their
first quarter of every year, that is, to ensure that adequate professional licenses forthwith.
1st January to 31st March, you are preparations for the election are
therefore urged to forward your made. Henceforth, no Annual Accounts
Annual Accounts to the will be approved without the seal
Directorate without delay as of a Licensed Book-keeper.
defaulting societies will be 7. ELECTIONS AND
penalized. HANDING OVER: Complaints against any Licensed
Where elections are to take place Book Keeper should be directed to
However, Cooperative Societies at the AGM, appropriate steps the Director of Cooperative
that have outstanding Annual should be made to put in place the Services through appropriate Area
Account within the first quarter of Officer.

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 15. AMENDMENT OF
10. HIRING OF EXTERNAL In any case, an approval must be BYE-LAWS: Many Cooperative
AUDITORS: We have observed obtained from the general body of Societies are now amending their
that some societies engage the members and the Director of bye-laws in order to provide legal
services of external auditors Cooperative Services before cover for the expansion that has
without reference to, and approval applying for such facilities. been recorded in their operations.
of, the office of the Director of
Cooperative Services. We shall no Beneficiaries of this facility must However, our experience has
longer tolerate this flagrant also file in applications copies of shown that members of the Co-
violation of the Law. which must accompany documents operatives are not often carried
to the Director. along.
While this office is not opposed to
the engagement of external 12. INVESTMENT IN Societies are therefore enjoined to
auditors where necessary and does SPECIAL PROJECTS: Any ensure that such amendments are
not intend to impose any auditor(s) society that is willing to embark on ratified by not less than 2/3 of your
on any society, the process of investment in special projects like members before the approval of
engaging external auditors must be equipment leasing, land acquisition the Director of Cooperative
in conformity with the Law. or home ownership schemes etc. to Services is sought for.
Consequently, societies that intend enhance the socio-economic 16. ALLOWANCES
to engage the services of external welfare of its members, must first PAYABLE TO OFFICERS: The
auditors are required to send three sought and obtain the consent of Co-operative Societies Law only
(3) names of desired firms of the Director of Cooperative recognizes the payment of
auditors out of which this office Services before embarking on such honorarium to management
shall select one. projects as required by the above committee and other functional
stated Law. committees members for services
11. BANKING FACILITIES: rendered; we have however
Since bank charges constitute a 13. RESERVE FUND: The discovered that officers of
significant proportion of Reserve Fund is an indivisible Cooperative Societies, in addition,
expenditure profile of Cooperative fund created by Law for the use of pay to themselves various kinds of
Societies, it is hereby advised that every society. It has been observed allowances. We view this trend as
Commission On Transaction that over the years a large number an abuse of office.
(C.O.T) chargeable on every of societies have not been able to
transaction be thoroughly account for them, it is therefore Henceforth, officers must obtain a
negotiated in order to bring down mandatory for all societies from written clearance from the office
such cost. this year to physically fix this fund of the Director of Cooperative
in a special interest yielding Services before they pay any
By the same token, societies are account. allowance(s) other than
also enjoined not to leave too honorarium to themselves
much funds in their current otherwise, such officers shall be
accounts neither should they use made to refund such money they
ATM cards in the operation of might have collected.
society’s corporate bank account.
17. COMPUTARISATION OF
I also want to advise that societies YOUR SOCIETY’S
should desist from obtaining loans OPERATIONS: We have
or overdraft facilities from banks observed that the delay in the
to finance the normal credit rendition of Annual Statement of
14. JOINT VENTURES:
requirements of their members. Accounts by societies is mostly
This Directorate shall encourage
due to lack of time on the part of
and support joint investment in
BANK/EXTERNAL LOANS: the management committee
projects, business ventures and
However, term loans facilities members, especially where the
services by cooperative societies in
meant for the financing of volume of operations of such
the state making use of the
Cooperative housing projects or societies are large.
dynamics of the cooperatives.
other long-term projects may be
tolerated.

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As a way of solving this problem, [Link] 21. APPEAL TO
it is now compulsory for every PROVISIONS: It has also come COOPERATORS:
society with membership size of to our notice that some officers of I am using this medium to appeal
200 and above to computerize their Co-operative Societies are fond of to all cooperators to be more
records. A number of software spending beyond approved proactive and show more interest
especially designed for cooperative appropriated funds for some in the affairs of their societies
accounting have been tested and activities such as AGM expenses, especially in their financial affairs.
endorsed by this Directorate. You dividend etc. Feel free to get in touch with me or
can verify or obtain more Henceforth, approval for such our Area office nearest to you. See
information on these software from extra expenditures must be their locations in the box below.
the Directorate. obtained from the Director of Co-
operative Services otherwise 22. APPRECIATION: We
18. EDUCATION AND officers involved in such arbitrary thank you for your cooperation in
TRAINING: While it is spending will be made to refund the performance of our duties in
expedient for Cooperative such to the society. the past, and solicit for your
Societies to constantly train their continued cooperation in our
members in fulfillment of one of 20. AFFILIATION: In efforts to optimise our service
the Principles of Cooperation, it fulfillment of one of the cardinal delivery to the cooperative
has however become necessary principles of co-operation, all movement in Lagos State and our
that any such training that is not registered societies are expected to quest to take the movement to the
being organized by the Directorate, affiliate to appropriate co- next level.
must be cleared by the Director operative unions within their area
before the society’s fund is of operation at the earliest possible
committed on such. Management time. However, if there is any Ayo Awokulehin (Mrs.),
Committee Members of any erring doubt as to where to affiliate, do Director of Cooperative Services,
society shall be made to refund any not hesitate to consult our Area Lagos State.
amount so committed. Office nearest to you. 08023225407

S/N Cooperative Area Office Address/Location

1. LAGOS ISLAND 147, BROAD STREET, LAGOS
2. LAGOS MAINLAND 147, BROAD STREET, LAGOS
3. APAPA/AJEROMI 147, BROAD STREET, LAGOS
4. IKEJA/OJODU BLK 9, 1ST FLOOR, OLD SECRETARIAT GRA-IKEJA
5. ALIMOSHO BLK 9, 1ST FLOOR, OLD SECRETARIAT GRA-IKEJA
6. VICTORIA ISLAND/IKOYI 1, WILMOT POINT ROAD, BAR BEACH, V.I., LAGOS
7. AGEGE/IFAKO-IJAIYE JOHNSON AGIRI COMPLEX, OLD ABEOKUTA ROAD,
OKO-OBA, AGEGE
8. MUSHIN DAIRY FARM COMPLEX, PEN CINEMA, AGEGE
9. OSHODI/ISOLO DAIRY FARM COMPLEX, PEN CINEMA, AGEGE
10. OJO/AMUWO-ODOFIN LAISA COMPLEX, AGRIC B/STOP, LAGOS-BADAGRY
EXPRESS ROAD, NEAR IYANA OBA
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11. SHOMOLU 60, APATA ROAD, OFF OGUNTOLU STREET, SHOMOLU
12. IKORODU 14, ORIWU ROAD, ITA ELEWA, IKORODU
13. BADAGRY MARINA, NEAR CULTURE OFFICE, BADAGRY
14. AJAH/IBEJU-LEKKI EPE-AJAH EXPRESS ROAD, ILAJE B/STOP, AJAH
15. EPE OKE OYINBO, EPE

For further information and assistance on your operations,

you may get in touch with any of these units through the following:
Legal/Arbitration Services: 080238771 Audit: 080339135
Registration Services: 08063243377 Training: 08023435026

Produced by the Directorate of Co-operative Services,

Block 23, Ground floor, Left Wing, Lagos State Secretariat,
Alausa-Ikeja.