Abstract
Cooperatives play an important role in facilitating access to credit, procurement and storage distribution of input and marketing of products. They create employment opportunities particularly in the rural areas and allow disadvantaged groups to be organized for social and economic benefit. This study was conducted in Abeokuta North and Abeokuta South Local Government Areas of Ogun State, Nigeria. Both primary data and secondary data were used for the study. Multi–stage random sample was used to sample 108 cooperative members. Data collected were analysed using descriptive tools, budgetary analysis, logit and multiple regression model. The findings shows that majority (50.9 percent) of the cooperators are male, 77.8 percent were married,59.3 percent were Christians while 98.1 percent were educated.Majority (87.9 percent) had experience ranging from 1 – 10 which is good in business. The total variables cost from business was estimated at N70,983.47, total fixed cost was N276,271 and this accounted for only 79.56 percent of the total cost. Returns on Investment (RRI), Profitability Index (PI), Return on Variable Cost (RRVC) and Operation Ratio (OR) were 181.62%, 0.63, 173.42% and 0.21 respectively. Also some (48.1 percent) of the respondents enjoyed loan benefit, while 40.7 percent enjoyed business improvement benefit.The results showed that start up capital, labour and credit obtained were significant to cooperative members’access to credit. The result revealed that majority (72.2 percent) of the respondents suffered from non-remittance of deduction by the government as their own challenges. The study concluded that cooperative credit societies is very productive and effective in helping members achieving their goals and also improve their standard of living. Cooperatives societies should encourage members in quick accessibility to loan.
Highlights
International Co-operative Alliance (ICA) (1895) defined Cooperative Society as an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise
A total of 90.7% of the respondents were with the age range of 18 to 50 years, this result shows that Cooperative credit enhance their performance
Total Revenue (TR), Gross Margin (GM) and Net Farm Income (NFI) of the business were estimated at N973,533.33, N702,549.87 and N426,278.87 respectively
Summary
International Co-operative Alliance (ICA) (1895) defined Cooperative Society as an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. Ebonyi and Jimo (2002) described cooperative societies as associations of persons who have voluntarily come together to achieve common objectives through the formation of democratically controlled organization; making equitable contributions to the capital required and accepting a fair share of the risk and benefits of the undertakings. The essence of cooperatives as observed by Dogarawa (2005) is an effective way for people to exert control over their livelihoods; provide a unique tool for achieving one or more economic goals in an increasingly competitive global economy; own what might be difficult for individuals to own or pursue by their efforts; strengthen the communities in which they operate through job provision. This cooperation to Audu et al, (2007) enables people to achieve through joint efforts, what they are unable to achieve while working as individual
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