The purpose of this study is to examine and evaluate “The Effect of Illiteracy on Cooperative Organization in Mbaitolu Local Government Area of Imo State.” The research work covers all the registered Cooperative Societies in the area. Two sources of data were used namely: The Primary and the Secondary data. Questionnaires were also used as research instruments to supplement information from the books and journals. Research questions were constructed to get feed back of the problems faced by the cooperative societies in the Local Government Area. This work is divided into five chapters. The Background of the study, the Statement of Problems, Scope and Limitation of the study, Objectives of the study, Research Questions were treated in this work. Others include Significance of study and Limitation of the study and Definition of terms. In Chapter Two, Literature review on past-related works will be discussed. In chapter three, the research is designed and methodology was discussed, including population of the study, sample size, sampling techniques, method of data collection, which will help give the result. In chapter four, presentation of data, analysis and interpretation of data was discussed. Finally, chapter five deals with the summary of the findings. In the course of the study, the researcher aimed at assessing how illiteracy affects the performance of cooperative societies in the area, from the information given, the problem that seem to hinders cooperative business in the local government area are as follows: Lack of funds, lack of government support, inadequate cooperative education of members and lack of social /infrastructural facilities. The study also proffered some recommendations to improve the performance of cooperative societies in the local government area.

CHAPTER ONE: INTRODUCTION

1.1 BACKGROUND OF THE STUDY
Education is central to development. It empowers people, strengthens nations and it is key to the attainment of the millennium development goals. Already, the world’s largest external financier of education, the world bank, is today more committed than ever to helping countries develop holistic education system aimed both at achieving Education For All (EFA) and building dynamic knowledge societies that are keys completing global market through education for the knowledge of economy.
Illiteracy, in order words has been interpreted as the inability to read or write being illiterate can have a big effect on people’s lives. There are several problems that arise with illiterate people functioning in society. First, the costs of illiteracy are great burdens on large government as well as local areas. Secondly, there is the question of how people can survive in the literate world without being illiterate themselves. Thirdly, motivation for adult to become literate fluctuated in the past. This study centers on the effect of illiteracy on cooperative organization. The saying is true that when a man is not informed, he is deformed.
The failure of many cooperative in developing countries like Nigeria can be partly explained by the marked difference between their origin and that of agricultural cooperate movement in the industrialized countries, while the cooperative in the developed countries were formed from the principles of small membership. The root of the word “Cooperative” is a Latin verb “Operate” meaning to work and prefix “Co” meaning together along with people.
Also according to the Oxford Advanced Learners Dictionary, the word Cooperative means working together to achieve a common purpose. Cooperation and cooperative society have been variously conceived of, and has been defined by different scholars and practitioners all over the world.
According to the directorate for Social Mobilization (MAMSER) cooperative is defined “as an association of person’s who have voluntarily joined a group to achieve a particular objectives, through the formation of democratically controlled organization to make equitable contributions to the capital required and accepting a fair share of risk and benefits of the undertaking in which members actively participate”.
People come together to form a cooperative society, because they cannot achieve their aims individually. These persons, who come to form the cooperative, occasionally have the same social and economic problems and having the interest of being a member of the cooperative society. A typical example of cooperative is the “ISUSU” or “ESUSU” type of association, where different individuals contribute a certain amount of money, which is sometimes done weekly, or monthly base on the agreement of the members, when the money contributed accumulates, it will be given to any member of the association who is in need of money. This is an ongoing process and it is rational till all of them have received their own share, it is rotational in nature.
The definition of cooperative as stated earlier has been defined by many scholars and authors, but the most generally accepted is that of the International Cooperative Alliance (ICA) at its 1995 congress held in Manchester England. The Manchester congress defined cooperatives as “an autonomous association of persons United voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly, owned and democratically controlled enterprise.
In Nigeria today some states and local governments encourage cooperative education so as to eradicate illiteracy in cooperative organizations by organizing seminars, workshops etc. The high level of illiteracy is one major problem of cooperative management, in developed countries, the level of illiteracy is very low, compared to less developed countries, where illiteracy is at its paramount i.e. the population of these country are mostly illiterates or barely educated.
Mbaitolu Local Government Area is one of the local government areas that make up Imo State. It has 10 registered cooperative societies whose membership compositions are made up of both males and females. The various types of cooperative found in the local government are farmers Multi-Purpose Cooperative Societies (MCS). Builders Cooperative Societies, Insurance Cooperative Societies, Artisans Cooperative Societies and Cooperative Palm Produce Societies (CPMS etc.

1.2 STATEMENT OF THE PROBLEM
Illiteracy is a major obstacle to the growth and development of cooperative societies in Nigeria and Imo State in particular. Because of illiteracy among the cooperative officers and members the management of some of these cooperative societies have been inefficient. After the introduction of cooperative society with the aim of uplifting the standard of living of people, illiteracy stands as a problem and that is why cooperative has not been too successful in the local government Area. When the members and officers of cooperative organization are illiterates, they would not be able to understand and interpret the cooperative laws and byelaws. Also, they will not know their rights and duties as members and officers/staff of the cooperative organization. Illiteracy on the side of the officers and staff of the cooperative will make them not to know the process of disbursing loans and conducting meetings for their societies. As a result, the cooperative organization will not experience growth and development. Even though cooperative societies in the local government area have in some areas experience growth and development, illiteracy could still be a barrier to the accomplishment of most of the cooperative societies aims and objective.

1.3 OBJECTIVE OF THE STUDY
The major objective of the study is aimed at assessing the level of illiteracy among the members of cooperative societies in Mbaitolu local government in Imo state as well evaluating its effects on the activities of the societies
They include:

1. To identify the socio-economic characteristics of the members of the cooperative societies.
2. To analyses the functions/activities of the societies in the L.G.A.
3. To examine the level of illiteracy among the members of the societies.
4. To analyze and evaluate the effects of illiteracy on the activities of the societies.
5. To identify and analyze the various problems emanating from illiteracy of the members.
6. To make recommendations based on the findings of the study.

1.4 RESEARCH QUESTIONS

1. What are the socio-economic characteristics of the members of the cooperative societies?
2. What are the functions/activities of the societies in the L.G.A.?
3. What are the level of illiteracy among the members of the societies?
4. How are we going to recommendations based on the findings of the study?
5. What are the various problems emanating from illiteracy of the members?
6. What are the effects of illiteracy on the activities of the societies?

1.5 STATEMENT OF HYPOTHESIS
HO: Illiteracy has no significant on cooperative society
HI: Illiteracy was significant effect on cooperative society.
HO: Illiteracy stands as a barrier that is why cooperative societies has been too successful in the local government.
HI: Illiteracy do not stand as a barrier in the success of the cooperative society.

1.6 SIGNIFICANCE OF THE STUDY
The importance aspect of the study is its significance to the cooperative societies in Mbaitoli local government area and those who in one way or the other would benefit from the recommendation made by the researcher in the nearest future. It is to state that various research works on cooperative emphasize mostly on cooperative education management of cooperative, cooperative thrift and credit society. But this research covers the offer of illiteracy on cooperative organizations.
The significance or importance are as follows:

1. It will give clear insight on the effects of illiterate cooperative organization in Mbaitolu L.G.A. of Imo State.
2. It will aid to critically assess how the cooperative society in Mbaitolu L.G.A performs and its activities.
3. It will help the cooperative societies in Mbaitolu L.G.A know the cases of illiteracy and its effects on the organization.
4. The research work will provide useful information to the cooperative organizations.
5. It would equally be very useful to the various government levels, as it would aid in identifying the various areas where enabling legislations are necessary to encourage cooperative formation as well as fight the scourge known as illiteracy.

Finally, the result of the study will create room for further literature work on the same study.

1.7 SCOPE OF THE STUDY
The study covers the registered cooperative societies in the nine communities in Mbaitolu Local Government Area. Below are communities that make up the Mbaitolu Local Government Area, Afara, Orodo, Eziama, Ifakala, Umunouha, Ubomiri, Ogwa, Mbieri and Ogbaku.

1.8 LIMITATIONS OF THE STUDY
The major constraints experienced in the course of this research work are as follows:
Of this research work are as follows:

1. Problem of data collection
2. Problem of time factors.
3. Transportation problems
4. Inconviences involved in trying to combine this project work with my class work, lectures and other personal problems.
5. Unavailability of finance required to carry out the study.

1.9 DEFINITION OF TERMS
Cooperative: It is a form of business organization, which involves the coming together of individual who have the same socio-economic problems, who then pool their resources together in order to help solve it (the problem).
Illiteracy: This is the state of not knowing very much about a particular subject area or not having any knowledge about a certain thing.
Finance: Is the raising and using of money/fund by individuals, firms, and government or organizations for the day to day running and management of their business undertaking.
Organization: Is the pattern for combing the men and materials of a business to provide the most successful means for achieving the objective of the business.