An Assessment Of Problems And Prospects Of Cooperative Societies In Nigeria

Project and Seminar material for Public Administration

Abstract

This study was carried out to assess the problems and prospective of cooperative societies in Nigeria using First Capital Microfinance Cooperative Society Limited, headquartered at Amuwo-Odofin Local Government area of Lagos State as a case study. The study was carried out to determine the internal problems confronting cooperative societies in Nigeria, determine the governmental factors affecting cooperative societies in Nigeria, and determine the prospects of cooperative societies in Nigeria. The population size comprised of staff of First Capital Microfinance Cooperative Society Limited, headquartered at Amuwo-Odofin Local Government area of Lagos State. In determining the sample size, the researcher purposefully selected 160 respondents and 141 were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables, and mean scores. While the hypotheses was tested chi-square statistical tool. The result of the findings reveals that he internal problems confronting cooperative societies in Nigeria includes: not participating in teamwork, delayed loan repayment by members, ineffective participation in decision making, corruption, power tussle, and poor business orientation. Furthermore the result of the study reveals that the prospects of cooperative societies in Nigeria includes: adequate support from the government, creation of secured business environment buy the government, entrenching active participation of members in decision making, and obtaining proper business orientation. Therefore, it is recommended that the members of cooperative societies in Nigeria should improve on their attendant, teamwork, decision making and general participation in the cooperative activities to maximally possible benefits avail in being members of cooperative societies. To mention but a few.

Table of Content

Title Page
Certification
Dedication
Acknowledgement
Table of Content
List of Tables
Abstract

Chapter One:

Introduction

1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objective of the Study
1.4 Research Questions
1.5 Research Hypothesis
1.6 Significance of the Study
1.7 Scope of the Study
1.8 Limitation of the Study
1.9 Definition of Terms
1.10 Organisations of the Study

Chapter Two:

Review of Literature

2.1 Conceptual Framework
2.2 Theoretical Framework
2.3 Empirical Review

Chapter Three:

Research Methodology

3.1 Research Design
3.2 Population of the Study
3.3 Sample Size Determination
3.4 Sample Size Selection Technique and Procedure
3.5 Research Instrument and Administration
3.6 Method of Data Collection
3.7 Method of Data Analysis
3.8 Validity of the Study
3.9 Reliability of the Study
3.10 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

4.1 Data Presentation
4.2 Analysis of Data
4.3 Answering Research Questions
4.4 Test of Hypotheses

Chapter Five:

Summary, Conclusion and Recommendation

5.1 Summary
5.2 Conclusion
5.3 Recommendation
References
APPENDIX
QUESTIONNAIRE

Chapter One

Introduction

1.1 Background of the Study

A cooperative has been defined in various ways and terms according to the diversities of cooperative societies, different understanding, location, the level of engagement in the line of production and function of each type of cooperative at the global perspective. There is no universal definition of a cooperative society. However a cooperative can be defined as an autonomous association of persons who voluntarily cooperate for their mutual, social, economic, and cultural benefits (Najamuddeen et al., 2012).

Cooperatives generate valuable benefits to members. To start with it is easy to pool limited resources together for common investment. Secondly is that, members enjoy economies of scale on production, purchasing or marketing. This is as a result of the large scale aspect of the cooperatives. Thirdly is the improved practice and shared responsibility in cooperatives. This means that members who have different capacities and skills participate in the decision making or running of the cooperative societies. Fourthly is the access to credits and other services. The issue of collateral when securing loans in many countries in the twenty first century applicable to cooperative societies is minimal unlike to the individuals. Finally is the maximization of returns. This is the main benefit in cooperative societies (IYC, 2012). Co-operatives are therefore an important vessel for community development.
Cooperative unlike many organizations usually faced with one common problem, which is how to keep balance in the two parts of cooperative business, efficiency and democracy. Since those who are charged with operation of a cooperative chiefly the board and manager must serve two masters: the imperatives of good business practice and the social purpose of a community of people. Hence, to maintain their special character, cooperatives must be two things in one: a business organization and social movement. This is what makes a cooperative a business enterprise with human interface and so, very difficult to manage. In striving for efficiency, cooperatives often tend to imitate other business, but in pursuing a social purpose they bring out features, which make them different.

However, irrespective of the benefits offered by cooperative in Nigeria, the presence of various factors has hindered the full performance and operation of cooperatives, hence has made it difficult for the cooperative to contribute significantly to economic development of members and state at large. Various studies had tried to identify possible factors responsible for the underperformance of cooperatives societies in Nigeria and various approaches had been taken to arrive at possible best conclusion. However, none to the best of knowledge of researcher had critically examined the problems and prospective of cooperative societies in Nigeria. This therefore ignited this study.

1.2 Statement of the Problem

One of the purposes of cooperative societies is to help members solve their problems collectively instead of looking up to government for solutions (Adegeye and Dittoh, 1995). However, noticeably of recent cooperative societies has not been significantly play supportive roles as expected on its members. The presence of various internal crises has made it difficult for the cooperative to contribute significantly to economic development of members and state at large. Poor performance of cooperative has led to Members’ withdrawal from some cooperatives. Failure to save and repay loans is also an indicator of poorly performing cooperatives in the Nigeria. This can be attributed to organizational and leadership challenges, difficult operating environment and inability to adapt to changing socio-economic environment, including markets of products and services offered. These challenges has led to poor performance and eventually collapse of a cooperative society. In view of the above, this study seek to assess the problems and prospective of cooperative societies in Nigeria.

1.3 Objective of the Study

The primary aim of this study is to assess the problems and prospective of cooperative societies in Nigeria. Thus, the following are the specific objectives;

Determine the internal problems confronting cooperative societies in Nigeria.
Determine the governmental factors affecting cooperative societies in Nigeria.
Determine the prospects of cooperative societies in Nigeria.

1.4 Research Questions

The following questions guide this study;

What are the internal problems confronting cooperative societies in Nigeria?
1. Not participating in teamwork, Delayed loan repayment by members,
2. Ineffective participation in decision making,
3. Corruption,
4. Power tussle,
5. Poor business orientation
What are the governmental factors affecting cooperative societies in Nigeria?
1. Political interference,
2. Lack of good interaction with government agencies,
3. Government negligence,
4. Unfavourable governmental policies,
5. Poor business environment
What is the prospects of cooperative societies in Nigeria?
1. Adequate support from the government,
2. Creation of secured business environment buy the government,
3. Entrenching active participation of members in decision making,
4. Obtaining proper business orientation.

1.5 Research Hypotheses

Ho: There are no significant problems affecting cooperative societies in Nigeria.
Ha: There are significant problems affecting cooperative societies in Nigeria.

1.6 Significance of the Study

This research work will provide a basis upon which the cooperative stakeholders can use to restructure and effect changes effectively to ensure success. The findings will also be useful to the Nigerian Government in strengthening the cooperative advocacy in marginalized areas and formation of effective policy framework for different cooperatives.

1.7 Scope of the Study

This study focuses on the problems and prospective of cooperative societies in Nigeria. The study will be carried out in First Capital Microfinance Cooperative Society Limited, headquartered at Amuwo-Odofin Local Government area of Lagos State.

1.8 Limitations of the Study

The researcher encountered minor obstacles when conducting the study, as with any human endeavor. The significant constraint was the scarcity of literature on the subject due to the nature of the discourse, so the researcher incurred more financial expenses and spent more time sourcing for relevant materials, literature, or information and in the data collection process, which is why the researcher resorted to a limited choice of sample size. Furthermore, the researcher did this investigation alongside other academic activities. Furthermore, the sample size was limited because only a few respondents were chosen to answer the research instrument, therefore the results cannot be generalized to other secondary schools outside the state. Despite the constraints encountered during the research, all elements were minimized in order to provide the best results and make the research effective.

1.9 Definition of Terms

Cooperative Society:

A cooperative is “an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned enterprise”. Cooperatives are democratically owned by their members, with each member having one vote in electing the board of directors.

1.10 Organization of the Study

The study is categorized into five chapters. The first chapter presents the background of the study, statement of the problem, objective of the study, research questions and hypothesis, the significance of the study, scope/limitations of the study, and definition of terms. The chapter two covers the review of literature with emphasis on conceptual framework, theoretical framework, and empirical review. Likewise, the chapter three which is the research methodology, specifically covers the research design, population of the study, sample size determination, sample size, abnd selection technique and procedure, research instrument and administration, method of data collection, method of data analysis, validity and reliability of the study, and ethical consideration. The second to last chapter being the chapter four presents the data presentation and analysis, while the last chapter (chapter five) contains the summary, conclusion and recommendation.

Chapter Five

Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings on the problems and prospective of cooperative societies in Nigeria using First Capital Microfinance Cooperative Society Limited, headquartered at Amuwo-Odofin Local Government area of Lagos State as a case study. The chapter consists of summary of the study, conclusions, and recommendations.

5.2 Summary of the Study

In this study, our focus was to assess the problems and prospective of cooperative societies in Nigeria using First Capital Microfinance Cooperative Society Limited, headquartered at Amuwo-Odofin Local Government area of Lagos State as a case study. The study specifically was aimed to determine the internal problems confronting cooperative societies in Nigeria, determine the governmental factors affecting cooperative societies in Nigeria, and determine the prospects of cooperative societies in Nigeria.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 141 responses were validated from the enrolled participants where all respondents are staff of First Capital Microfinance Cooperative Society Limited, headquartered at Amuwo-Odofin Local Government area of Lagos State.

5.3 Conclusions

Based on the findings of this study, the researcher made the following conclusion.

The internal problems confronting cooperative societies in Nigeria includes: not participating in teamwork, delayed loan repayment by members, ineffective participation in decision making, corruption, power tussle, and poor business orientation.
The governmental factors affecting cooperative societies in Nigeria includes: political interference, lack of good interaction with government agencies, government negligence, unfavourable governmental policies, and poor business environment.
The prospects of cooperative societies in Nigeria includes: adequate support from the government, creation of secured business environment buy the government, entrenching active participation of members in decision making, and obtaining proper business orientation.

5.4 Recommendations

Based on the findings of the study, the following recommendations are proffered.

The members of cooperative societies in Nigeria should improve on their attendant, teamwork, decision making and general participation in the cooperative activities to maximally possible benefits avail in being members of cooperative societies.
The leadership in the cooperative societies should be democratically appointed to give rooms for fairness and rights for others to express their wishes. More-also, the leaders in the cooperatives should try to be unbiased and proactive while handling cooperative issues.
The cooperative societies should maintain its freedom from political influences, religion and cultural affiliation. This can be achievable through visionary and dynamic leaders that opened to all members and deals with societies’ issues without biasness. Also, horizontal and vertical interactions should be maintained to ensure sharing of ideas among others cooperatives as well as giving rooms for effective monitoring.
The government should improve on policies that dealt with operation of cooperative association in Nigeria. Likewise, the government should assist the cooperative to establish linkages with the several NGOs within and outside the country in order to benefit from the array of assistance windows that will enhance their activities.

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