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FINANCIAL MANAGEMENT AND SURVIVAL OF COOPERATIVE SOCIETIES IN NIGERIA (A STUDY OF YABA COLLEGE OF TECHNOLOGY COOPERATIVE SOCIETY)


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FINANCIAL MANAGEMENT AND SURVIVAL OF COOPERATIVE SOCIETIES IN NIGERIA (A STUDY OF YABA COLLEGE OF TECHNOLOGY COOPERATIVE SOCIETY)


ABSTRACT

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 record.

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

CHAPTER ONE

1.1       Background of the Study

1.2       Statement of the Problem

1.3       Purpose of the Study

1.4       Research Questions

1.5       Research Hypothesis

1.6       Scope of the Study

1.7       Significance of the Study

l.8        Limitation of the Study

1.9       Definition of Terms

CHAPTER TWO

2.0       LITERATURE REVIEW

2.1       The Meaning of Cooperative Society

2.2       Historical Development of Cooperative Society in Nigeria

2.3       Types of Cooperative Societies

2.4       Organization of Cooperatives Society

2.7       Cooperative and Other Types of Business Organization

2.8       Management and Control of Cooperative Societies

2.9       Functions of Cooperatives Executives

2.10     Problems Faced by Cooperative Financial Management

2.11     Types of Book kept By Cooperative Societies

CHAPTER THREE

3.0       RESEARCH METHODOLOGY

3.1       Research Design

3.2       Population of the Study

3.3       Sampling Procedure and Data Collection

3.4       Validity and Reliability of the Instrument

3.6       Method of Data Analysis

CHAPTER FOUR

4.0       RESULTS AND DISCUSSION

4.1       Introduction

4.2       Respondents Characteristics


4.3       Discussion of Finding

CHAPTER FIVE

5.0       SUMMARY, CONCLUSION AND FINDINGS

5.1       Summary of the Study

5.2       Conclusion

5.3       Recommendation

Reference

LIST OF TABLES

Table 1 Marital and Sex Status

Table 4.2 Age Group of Respondents

Table 4.3. Cooperative society keep proper records of account.

Table 4.4. Cooperative society manage the members fund   appropriately

Table 4.5.There is delay in granting loan to the members

Table 4.6 Cooperative society prepares her account in accordance with laid down principles.

CHAPTER ONE

INTRODUCTION

1.1     Background 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.

Allmembers 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.

1.2     Statement 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.

1.3     Purpose 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.

i.             What are the necessary tools required for proper financial administrationa cooperative society?

ii.           How can credit be managed in a cooperative society?

iii.        What should be the debt recovery steps and procedures?

iv.        What are the various ways and systems through funds can be generated and managed in cooperative societies?

1.5     Research Hypothesis

The testable hypotheses for this research work shall be:

Ho:    Cooperative societies can survive without efficient financial management

Hi:     Cooperative 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 organization.

1.7     Significance 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 refund.

1.8     Limitation 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.

1.9     Definition of Terms

By-law: This is the law by a society members in the exercise of the power conferred by decree 90 of 1993 of cooperative society law.

Committee: This is the governing body by whatever name called of a registered societyto which the management of its affairs is entrusted

Cooperators: 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.

Dividend: 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.


Arbitration: The settlement of dispute by the decision of a person(s) chosen as judge.

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