The study assesses the role of community based organizations (CBOs) in economic development of
Osogbo, Nigeria. This is with a view to establish the economic impact of CBOs on local economy and
their significance in national economic development. It uses primary data collected from all the heads
of 140 CBOs that have registered with the 2 local government councils in the study area as at the time
of this study. Both descriptive and inferential analytical techniques are used to analyse data collected
on the study. Specifically, correlation co-efficient with formular
( )( )
( ) ( )
2
2 2 2
n x x n y y
n xy x y
r
S - S S - S
S - S S
= is
used to establish relationships between capital bases of the CBOs and the number of members (10,788
people) and amount that each CBO could loan to members respectively. Research shows that most of
the CBOs came into existence more than a decade ago (81.3%) and source for funds from their
members (100%). About half (44%) of these CBOs give out loan to members. Findings on correlation coefficient
existing between capital bases of the CBOs and the number of members (10,788 people) and
amount that each CBO could loan to members are 0.67 and 0.52 respectively. This indicate that despite
that more than half (56.7%) of them do not loan out to members; they have the ability to loan out and by
this could cushion the effect of poor economy on and speed socio economic development of residents
in the study area. The study shows that CBOs could act as vehicles toward sustainable socio economic
and physical developments of communities in developing nations.