Assessing the efficacy of cooperative societies in agricultural credit delivery: A comprehensive review in Nigeria

Abstract

The comprehensive review critically assesses the efficacy of cooperative societies in agricultural credit delivery within the Nigeria context. Agricultural credit is a crucial driver of rural development, and cooperative societies have long been recognized as instrumental channels for its dissemination. The review unfolds against the backdrop of Nigeria’s agricultural landscape, aiming to offer a nuanced understanding of the multifaceted dynamics surrounding the performance of cooperative societies in facilitating credit access for farmers. The analysis spans historical developments to contemporary challenges, unraveling the evolution of cooperative societies in Nigeria and their pivotal role in supporting farmers financially. By examining a spectrum of cooperative models and their implementation, the review delves into the intricacies of credit delivery mechanisms. It evaluates the impact of cooperative societies on agricultural productivity, income generation, and overall rural livelihoods. Challenges inherent in the cooperative credit system are scrutinized, including issues of governance, financial sustainability, and external market influences. Furthermore, the review explores the socio-economic implications of agricultural credit provision through cooperatives, considering factors such as poverty alleviation, gender dynamics and community development. In light of emerging trends and innovation, the review identifies potential areas for improvement and innovation within cooperative societies. This includes the incorporation of digital technologies, novel financial instruments and strategic partnership to enhance the reach and effectiveness of agricultural credit delivery. Ultimately, this review aspires to contribute to the ongoing discourse on agricultural finance in Nigeria, offering insights that can inform policy makers, practitioners and researchers.