This research tends to examine Financial
Management and Survival of Cooperative Societies in Nigeria with special
reference to Yaba College of Technology Cooperative Society.
The research employed survey research
design. Data were sourced majorly by primary means, the data were gathered with
the aid of a well structured questionnaire. A sample of sixty (60) was drawn from
the staff of Yaba College of Technology Cooperative Society.
The data gathered were presented on
table using percentage. The formulated hypothesis was tested and resulted to
rejecting the null hypothesis and concluding that Cooperative societies can only
survive with efficient financial management.
From the findings, it was discovered
that cooperative societies fund can be effectively managed if the necessary
tools required for proper financial management are put in place. It was also
deduced that the funds generated can be monitored by keeping adequate financial
Analysis also shows that
contributions of cooperative help in improving the standard of living of the
members and this really explained the relevance of cooperative societies to the
Nation at large.
TABLE OF CONTENTS
Background of the Study
1.2 Statement of the Problem
Purpose of the Study
Scope of the Study
Significance of the Study
of the Study
Definition of Terms
The Meaning of Cooperative Society
Historical Development of
Cooperative Society in Nigeria
Types of Cooperative Societies
Organization of Cooperatives Society
Cooperative and Other Types of
Management and Control of
Functions of Cooperatives Executives
Problems Faced by Cooperative
Types of Book kept By Cooperative
Population of the Study
Sampling Procedure and Data
Validity and Reliability of the
Method of Data Analysis
RESULTS AND DISCUSSION
4.3 Discussion of Finding
SUMMARY, CONCLUSION AND FINDINGS
Summary of the Study
1 Marital and Sex Status
4.2 Age Group of Respondents
4.3. Cooperative society keep proper records of account.
Table 4.4. Cooperative society manage the
members fund appropriately
4.5.There is delay in granting loan to the members
4.6 Cooperative society prepares her account in accordance with laid down
of the Study
Cooperative Societies are found
throughout the Word. They are found in capitalist countries, in socialist countries
as well as in countries described as mixed economist existing and functioning
as an integral part of the whole economy. The history of cooperative society
could be traced as far back as the dark-ages when they used to exist and still
in existence; Esusu, Aro e.t.c in Nigeria. Onyemachi (l983) said the history of
modem cooperative could be traced to 1844 in Rockdale Concashine in England. He
said it was on as October 1844, that the society was registered under the same
name; The Equitable Society of Rockdale.
In starting a cooperative society, a
number of at least ten persons is required in the case of primary society and
for secondary society to be registered, it must has primary societies as it
members, that is made possible by the Nigerian Cooperative Society Decree 90 of
1993.After registration, the duties and privileges of a registered society is
expected to be presented with the registration application, this power and privileges
are made in form of by-law which will have all necessary and desired
regulations which dictates the code of conduct of its activities in line with
the purpose of its establishment. Cooperative society is the commercial effort by
people living in a community engaged in same trade, occupation or effort at
assisting one another to improve on their economic output through the
contribution of money into a common pool which is then distributed according to
their predetermined sharing formula.
Cooperative Society could also be
defined as the voluntary organization of consumers into a society, controlled
as possible for the purpose of supplying their immediate needs by observing
definite and generally accepted rules of action. The international Labour
Organization(ILO) defined cooperative society as "an association of person
usually of limited means who voluntarily, democratically come together to
achieve a common economic and social objective of its members by making
equitable contribution to the capital required and accepting a fair share of
the risks benefits of the undertaking". As can be seen from the definition
above member of cooperative society must join voluntary i.e without any
coercions or force but should join by their own volition and willingness, the
cooperative favours the doctrine of equal rights, benefits and opportunity for
all vested in a management committee or board of directors but in the general
meeting of members.
All members of cooperative pursue
identical society and economic interest to achieve a common goal and such, all
members share in risks and benefits, benefits in the form of patronage rebate
i.e a share of surplus and risks by forfeiting the capital contributed in event
of winding up. Equitable contribution that does not permit overwhelming percentage
of the total is required i.e just reasonable and modest contribution by all
members. All over the world, cooperative society could be in form of
agricultural cooperative, marketing cooperative, consumer cooperatives,
fishermen, artisan, informal, thrift and credit cooperative.
For the purpose of this study, the
financial management and survival of cooperative society in Nigeria with
respect to Yaba college of Technology as a case study is studied and examined.
of the Problem
This research work is channel towards
exposing the problem facing the management and survival of cooperative society.
Cooperative Societies spring up day in day out in Nigeria but many of them do
not stand the test of time due to one factor or the other. Also, cooperative
society without the legal backing of the organization or institution of its
existence die as a result of transfer, death, corruptive attitude, insolvent
state, retrenchment and other of the financial members. The purpose of
cooperative societies in many organization today are deviating from the instituted
reason of the establishment. Also, most of the cooperative societies are not in
accordance with the stated recommendation, rules and regulations that
established the concept. Today, as a result of restructured of financial banks
in Nigeria caused a lot of mergers amongst banks and the place of communities
banks were nearly eradicated. They also were to follow a set of procedure in
affiliation with one commercial bank. Activities of some of them now is
synonymous with the idea and practice of cooperative societies with respect to
their daily, weekly and monthly donations of individual or retailers and
wholesalers. The question is that "Is present Microfinance Banks the same
with the initiated cooperative society or taken over its functions?" There
is need to differentiate and compare their activities, roles and functions in
societies in relation to the past and present.
of the Study
The purpose of this study focus on
the financial management of the available funds in the account of cooperative
society. Strategic allocation of both excess and idle fund. Identification of
debt recovery step component and procedures. And analysis of various source of
funds of cooperative societies. This research work will serves as a basis for
the present day cooperative society, microfinance banks and government to
utilize the economic viability of cooperative society in order to improve
people standard of living and drastically ameliorate and mitigate the sporadic
poverty in the Country.
1.4 Research Questions
The following research questions
would be addressed with respect to the significance of the research work.
are the necessary tools required for proper financial administration a cooperative society?
can credit be managed in a cooperative society?
should be the debt recovery steps and procedures?
are the various ways and systems through funds can be generated and managed in
1.5 Research Hypothesis
The testable hypotheses for this
research work shall be:
societies can survive without efficient financial management
societies can survive with efficient financial management
1.6 Scope of the Study
This research work is restricted to
the cooperative society within Lagos Mainland area with reference to Yaba College of Technology Cooperative Society.
Although, various cooperative societies can be found all over Lagos State with
different dimension of operation. But due to the fact that Yaba College of
Technology Cooperative is as old as the institution itself .at the same time
strictly followed the basic rules and regulations that established the
of the Study
The concept of financial management
became more prominent because it is assumed that the cooperators so much trust
themselves without considering the sophistication in the economy and its
implication on their funds. This study is channeled towards exposing the
relevance of cooperative society to the members as well as to the society at
large. It will be of relevant to the existing cooperative societies the
necessary protocols, procedures and doctrine of cooperative society. Some
member of the society do not aware their right with respect to their
contribution as well as interest on their contribution. This will help majority
at large about the formation of cooperative society processes and change their
crude methods and unethical means of money collection. It will also help people
to be aware of the minimum and maximum percentages of interest the members
should be charged with respect to the amount borrowed and systematic way of
of the Study
The time available for investigation
was not enough to extend to other cooperative societies because of the short
period of time within which the report would be submitted. Hence, it would be
based on information gathered in Yaba College of Technology Cooperative Society
alone. Resources at the disposal of the researcher were not enough to extend
this scope and also influenced by financial constraint.
is the law by a society members in the exercise of the power conferred by
decree 90 of 1993 of cooperative society law.
This is the governing body by whatever name called of a registered society to
which the management of its affairs is entrusted
These are person(s) or registered society join the application for registration
of a society.
Secondary Society: This is the registered society established to facilitate the operations
of society in accordance with cooperative principles.
These is the share of profit of members of a registered society divided among
its members in proportion to the share capital held by them.
Executives/Officers: These are the people empower under the regulation or bye- laws to give
directions in regard to the activities and management of a registered company.
The settlement of dispute by the decision of a person(s) chosen as judge.