FINANCIAL MANAGEMENT AND SURVIVAL OF COOPERATIVE SOCIETIES IN NIGERIA. (A STUDY OF YABA COLLEGE OF TECHNOLOGY COOPERATIVE SOCIETY)
ABSTRACT
This study looks at the financial management and survival of cooperative societies in Nigeria, with a focus on the Yaba College of Technology Cooperative Society.
The survey research design was used in the study. The majority of the data was obtained through primary sources, and the information was gathered using a well-structured questionnaire. A sample of sixty (60) people was taken from the Yaba College of Technology Cooperative Society’s personnel.
The information gathered was provided in the form of a table with percentages. The investigated hypothesis resulted in the rejection of the null hypothesis and the conclusion that cooperative organizations can only thrive with efficient financial management.
According to the findings, cooperative societies’ funds can be properly handled if the appropriate tools for proper financial management are in place. It was also determined that the monies earned can be tracked by maintaining sufficient financial records.
Analysis also demonstrates that cooperative contributions assist to improve the members’ standard of living, which further explains the importance of cooperative organizations to the nation at large.
TABLE OF MATERIALS
CHAPITRE ONE
1.1 Background of the Research
1.2 Formulation of the Problem
1.3 The Study’s Objective
1.4 Research Suggestions
1.5 Hypothesis of Research
1.6 Scope of the Research
1.7 Importance of the Research
l.8 Limitations of the Study
1.9 Definitions of Terms
CHAPITRE TWO
REVIEW OF LITERATURE 2.0
2.1 The Definition of Cooperative Society
2.2 The Evolution of Cooperative Societies in Nigeria
2.3 Different Types of Cooperative Societies
2.4 Cooperatives Society Organization
Cooperatives and Other Forms of Business Organization
2.8 Cooperative Society Management and Control
2.9 Executive Functions of Cooperatives
2.10 Issues Facing Cooperative Financial Management
2.11 Types of Books Maintained by Cooperative Societies
CHAPITRE THREE
3.0 METHODOLOGY OF RESEARCH
3.1 Research Methodology
3.2 Study Participant Population
3.3 Data Collection and Sampling Procedure
3.4 The Instrument’s Validity and Reliability
3.6 Data Analysis Methodology
CHAPITRE FOUR
4.0 OUTCOMES AND DISCUSSION
4.1.1 Introduction
4.2 Characteristics of Respondents
4.3 Discussion of the Finding
CHAPITRE FIVE
5.0 SUMMARY, CONCLUSION, AND RESULTS
5.1 Summary of the Research
5.2 Final Thoughts
Recommendation (5.3)
Reference
TABLE LISTING
Table 1: Marital and Sexual Situation
Table 4.2 Respondent Age Group
Table 4.3. Cooperative societies maintain accurate accounting records.
Table 4.4 shows how a cooperative society manages its members’ funds effectively.
Table 4.5.There is a delay in lending to members.
Table 4.6 The cooperative society compiles her report in accordance with the principles established.
CHAPITRE ONE
INTRODUCTION
1.1 The Study’s Background
Cooperative Societies can be found all over the world. They can be found in capitalist countries, socialist countries, and mixed-economy countries, where they exist and function as an integral element of the overall economy. The history of cooperative societies can be traced back to the dark ages, when they existed and still exist in Nigeria; Esusu, Aro, and so on.
According to Onyemachi(l983), the origins of modern cooperatives can be traced back to 1844 in Rockdale Concashine, England. He stated that the society was registered under the same name, The Equitable Society of Rockdale, in October 1844.
Starting a cooperative society requires at least ten people in the case of a primary society, and for a secondary society to be registered, it must have primary societies as members, as allowed by Nigerian Cooperative Society Decree 90 of 1993.
After registration, the duties and privileges of a registered society are anticipated to be presented with the registration application; these powers and privileges are made in the form of by-laws, which dictate the code of conduct of its operations in accordance with the aim of its establishment.
A cooperative society is a commercial effort by people living in the same community who are involved in the same trade, occupation, or effort to help one another improve their economic output by contributing money to a common pool, which is then distributed according to their predetermined sharing formula.
Cooperative Society can alternatively be defined as the voluntary organization of consumers into a society that is as tightly controlled as possible for the goal of satisfying their immediate needs by adhering to specified and widely agreed standards of action.
The International Labor Organization (ILO) defined cooperative society as “an association of people, usually of limited means, who come together voluntarily and democratically to achieve a common economic and social goal of its members by making an equitable contribution to the capital required and accepting a fair share of the risks and benefits of the undertaking.”
As can be seen from the definition above, members of a cooperative society must join voluntarily, that is, without coercion or force, and must join of their own volition and willingness. The cooperative also supports the doctrine of equal rights, benefits, and opportunities for all, which is vested not in a management committee or board of directors, but in the general meeting of members.
To achieve a common aim, all cooperative members seek identical societal and economic interests, and as such, all members share in risks and advantages, benefits in the form of patronage rebate, i.e. a share of surplus, and risks by forfeiting the capital invested in the event of winding up.
Equitable contribution that does not demand a large percentage of the total is required, i.e. only appropriate and modest contributions from all members. Cooperative societies can be found all over the world in the form of agricultural cooperatives, marketing cooperatives, consumer cooperatives, fishers, artisans, informal, thrift, and credit cooperatives.
The financial administration and survival of cooperative societies in Nigeria, with Yaba College of Technology as a case study, is explored and examined for the purposes of this study.
1.2 Problem Identification
This research is aimed at exposing the issues confronting cooperative society administration and survival. Cooperative Societies pop up all the time in Nigeria, but many of them fail to survive for one reason or another.
Furthermore, cooperative societies without the legal backing of an organization or institution of its existence die as a result of transfer, death, corruptive attitude, insolvency, retrenchment, and other financial members.
The goal of cooperative societies in many organizations nowadays deviates from the established reason. Furthermore, the majority of cooperative organizations do not follow the stated guidelines, rules, and laws that founded the concept.
Today, as a result of the restructuring of financial institutions in Nigeria, there have been several mergers among banks, and the position of community banks has practically been eliminated. They were also required to fulfill a set of procedures in order to be affiliated with one commercial bank.
Some of their activities are now synonymous with the concept and practice of cooperative organizations in terms of individual or retailer and wholesaler donations on a daily, weekly, and monthly basis. “Are current Microfinance Banks the same as the original cooperative organization or have they taken over its functions?” It is necessary to distinguish and compare their actions, roles, and functions in society in connection to the past and present.
1.3 The Study’s Purpose
The goal of this study is to focus on the financial management of the available funds in the cooperative society’s account. Excess and idle funds should be allocated strategically. Identifying debt recovery process components and procedures And an examination of the many sources of finances for cooperative societies.
This research work will serve as a foundation for today’s cooperative society, microfinance institutions, and government to use the economic viability of cooperative society to improve people’s standard of living and substantially relieve and mitigate the country’s intermittent poverty.
1.4 Research Concerns
With regard to the significance of the research activity, the following research questions would be addressed.
i. What are the tools required for proper financial administration in a cooperative society?
ii. How should credit be administered in a cooperative society?
iii. What should the debt collection steps and procedures be?
iv. What are the various methods and procedures for generating and managing funds in cooperative societies?
1.5 Hypothesis of Research
The following hypotheses will be tested for this research project:
Ho: Cooperative societies can exist in the absence of effective financial management.
Hello, cooperative societies can exist with good financial management.
1.6 The Study’s Scope
This study is limited to cooperative societies on the Lagos Mainland, with a focus on the Yaba College of Technology Cooperative Society. Nonetheless, several cooperative societies with varying levels of activity may be found throughout Lagos State. However, because Yaba College of Technology Cooperative is as old as the college itself, it scrupulously adhered to the core norms and regulations that founded the organization.
1.7 Importance of the Research
The concept of financial management has grown in popularity since it is considered that the cooperators place too much trust in themselves without considering the sophistication of the economy and its implications for their funds.
This research aims to raise awareness of the importance of cooperative societies among members and the general public. The essential protocols, procedures, and cooperative society doctrine will be relevant to the current cooperative societies. Some members of society are unaware of their rights and responsibilities in terms of their contributions.
This will inform the general public about cooperative society processes and encourage them to abandon crude and immoral ways of money collecting. It will also make individuals aware of the minimum and maximum percentages of interest that members should be charged in relation to the amount borrowed, as well as a systematic method of return.
1.8 The Study’s Limitations
Because of the short time frame for submitting the report, the time available for study was insufficient to expand to additional cooperative societies. As a result, it would be based solely on information acquired at Yaba College of Technology Cooperative Society. The researcher’s resources were insufficient to broaden this scope, which was partly influenced by financial constraints.
1.9 Terminology Definition
By-law: This is the law enacted by society members in the exercise of the authority granted by cooperative society law decree 90 of 1993.
Committee: A registered society’s governing body, by whatever name it is known, to whom the management of its business is entrusted.
Cooperators: These are individuals or registered societies who join the application for society registration.
Secondary Society: This is a recognized society designed to facilitate society’s operations in accordance with cooperative ideals.
Dividends are the profits of members of a registered society that are split among them in proportion to their share capital.
Executives/Officers: These are the individuals authorized by regulation or bye-law to direct the activities and management of a registered corporation.
Arbitration: The resolution of a dispute through the judgement of a judge or judges.
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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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