No, it is not. A cooperative society is a voluntary organisation and members have freedom to join and leave at any time subject to agreed terms and conditions.

Esusu is good and creates a foundation for the cooperative. But because there is no firm structure around it, it is prone to abuse and default. It also cannot grow so much..

There is a registration fee of N5,000 & N10,000 depending on the level you choose. This fee helps the Cooperative subsidize the initial onboarding costs. Such as Membership ID card, Passbook, Application development, etc.

The only real cost of becoming a member of a cooperative is the registration fee.

Minimum contribution depends on membership category joined. The least is N5,000 monthly and there is no maximum contribution.

The cooperative can invest in any viable business. However, it is advisable that in addition to flexibility, cooperatives consider safety over returns in their investment decisions. But broadly speaking loans and advances to members, real estates, money market investments and simple trading activities are the most common types of investments.

Interest on any loan to members shall be charged at a rate determined by the Management Committee. Members are eligible for loans after 6 months of consistent contributions.

Just like any other business, dividend is paid from profit every year. The portion of the profit to be declared as dividend and the mode of distribution is a decision for the Management Committee (MC) to make. However, it is important to ensure that members reap from the profit in proportion to their contribution towards the realisation of the profit.

There are usually two main types of savings. The compulsory savings (or Contribution) is a mandatory regular contribution to the funds of the cooperative which acts as equity or share capital. Withdrawals are usually not allowed from this savings unless a member is withdrawing his or her membership. The cooperative may however also set up other types of savings schemes which may allow withdrawals based on whatever criteria that may be set.

The basic process for exiting the cooperative entails notifying the General Secretary via email or completion of an exit form. Processing takes 8 to 12 weeks from the point of formal notification.

Cooperative societies in Nigeria are regulated on a State by State basis. In Lagos, they are regulated by the Directorate of Cooperative Services which is under the Ministry of Commerce, Industry and Cooperatives. It should also be noted that although the cooperative operates within the sponsoring organization, it is a statutorily registered and separate legal entity with its own rights and responsibilities and is totally separate from its sponsoring organization.