ABSTRACT
This
study examines the socio-economic effect of co-operative society on the staff
of Akoko North East Local Government Council, Ikare-Akoko.
Questionnaires
as well as oral interviews were used and the subjects consisted of sixty
co-operators, ten each drawn from the six departments on the council. The study
revealed among others that there is a cooperative society in the council named
“Akoko North East Local government staff co-operative and thrift society”
registered in 1997. Membership of the society now stands at four hundred and
ten out of many members estimated to be six hundred and fifty staff of the
council. The co-operatives has enabled many members to improve on their
education. Twenty three members now own motor vehicles, and not fewer than one
hundred members have started various business ventures through the loans they
have received from the society. This society has indeed, improved the socio and
economic lives of it members. Despite the achievement of the society it is
faced with some problems such as,
i.
The need to seek for more ways of
generating funds.
ii.
The need to evolve effective credit
management and fraud prevention strategies.
iii.
Liaising with the Local Government
Council Commission to bring about an effective means of loan repayment by
unified staffs, that are transferred after being granted loans.
iv.
Embarking on co-operative for members
throughout the organisation of seminars, workshops and training programmes.
TABLE
OF CONTENTS
Title
Page
Certification
Dedication
Acknowledgement
Abstract
Table
of Content
List
of Tables
CHAPTER ONE
Introduction
Background
of the Study
Statements
of the Problems
Purpose
of the Study
Significant
of the Study
Research
Questions
Limitations
of the Study
Definitions
of Terms
CHAPTER TWO
REVIEW
OF RELATED LITERATURE
The
concept of co-operation
Meaning
and Origin of co-operative
Evolution
of co-operative /co-operation
Development
of Co-operative movement in Nigeria
Co-operative
Formation
Classification
of co-operative
CHAPTER THREE
Research
method
Research
Design
Population
and sampling procedure
Research
instrument
Validity
and Reliability of the instrument
Administration
instrument
Method
of Data Analysis
CHAPTER FOUR
Result
and Discussion
CHAPTER FIVE
Summary,
Recommendation and conclusion
Summary
Recommendation
Conclusion
References
Appendix
A
Appendix
B
CHAPTER ONE
INTRODUCTION
BACKGROUND
TO THE STUDY
In the mid-eighties, the regime of
General Ibrahim Babangida introduced the structural adjustment programme (SAP)
when the economy of Nigeria was nose diving. Through this programme, the
government called for a lot of self-denial for the citizens and economic
re-ordering from the nation.
In this democratic dispensation, there
are equally calls for self-denial too, as a nation as well as from individuals
the reasons for all these calls arise from the fact that the resources of the
nation are limited, in comparison to the needs of the individual citizens as
well as the nation.
The former president of the nation,
Chief Olusegun Obansanjo in a national broadcast on the 30th June
2005, through which he announced the reduction off the country’s debts by the
Paris club asserted that through Nigeria is producing nation, the country,
nevertheless is poor. He further said the pre-capital income of an individual
in Nigeria is not above 50cent.
In
view of the general level of poverty in the country, individuals and group such
as Local Government Council Employees, Teachers, Artisans and so on have been
evolving economic programmes as a result of their limited resources in terms of
their real and imaginable income as compared to the various means that call for
financial attentions. Everybody is therefore re-ordering priorities, drawing up
his scale of preference and channelling his limited resources to those area
that come first in his scale of preference. This they do so as to raise the
hash economic situation they encounter and to improve their standard of living.
Therefore, no wonder that majority of
the about six hundred and eighty one (681) staff of Akoko North East Local
Government Council, are members of the cooperatives society of the council, and
according to them, their lots have been bettered and improved as a result of
their membership.
STATEMENT OF THE PROBLEM
The local people in Akoko North East
Local Government Area of Ondo state, some of whom are highly educated, are of
the view that the Local Government Council Staff has unlimited ways of making
money which they belief are through corrupt practices, some of the employees
have become proud landlords, car owners, and petty business dealers.
The local people premise their opinion
on the fact that corruption has become so endemic in the country that it
becomes highly impossible to count the Local Government Council staffs on their
part claim that their social and economic advancement and improvement have
nothing to do with corruption, other than their economic prudency and financial
discipline which they have subjected themselves to through the Local Government
Council based on corruption.
They
opine that co-operation brings about their co-operative society and that
individuals need co-operation because without co-operation they cannot achieve
their aim and meet their needs alone as individuals. Suffice then to say that
their co-operation is borne out of a problem. Co-operation is endemic, since
everyone gas one kind of need, goal, objective and aspirations to meet which
can not be meet individually,
PURPOSE OF THE STUDY
This
study has its cardinal objectives to find out if there really exists any staff
co-operative society in Akoko North East Local Government Council. It equally
aims at finding out the source of fund from which the staffs are empowering
themselves economically.
The
study is also aimed at finding out whether or not the society is benefiting unduly
or illegally from the statutory funds of the council. It wishes to find out
whether the improvement on the socio-economic fronts of the staffs of the
council has direct bearing with the activities of the society or not.
Particularly attention will be focused on the number of staffs of the council
who have benefited. The study also aims at finding out the type of co-operative
society that is operational at the council and its lines of business.
SIGNIFICANCE
OF THE STUDY
The
socio-economic problem of man is very enormous. Significant efforts are
therefore required to solve them in the light of man’s limited resources.
Premised upon this therefore, this study will be significant in enlighten the
individual and groups, especially employees of public institutions, as well as
those of privates establishments on means of improving their socio-economic
wellbeing.
It
will be of great use in informing an average income earned on prudent
management of his or her meagre resources. It is an immense motivation to Local
Government Councils across the nation that has not established their own
co-operative societies to do so.
The
study will finally be significant in vindicating the staffs of the local
government council who ascribe their socio-economic advancement to their
co-operative society or assert the local people’s allegation of corrupt
practises by the local government employees. It will enlighten readers on
formation of co-operative society.
RESEARCH
QUESTIIONS
The
following research questions are raised to guide this study:
i.
Is there actually any staff in
co-operative society at Akoko North East Local Government Council, Ikare Akoko?
ii.
When was the society established?
iii.
Is the society registered under the
co-operative laws?
iv.
Is the rule according to the law of co-operative?
v.
Is the co-operative society a limited
function or multi-dimensional society?
vi.
Is the society affiliated with any
mother union?
vii.
What is the membership strength of the
society?
viii.
Apart from the traditional business of the
society, which ad-hoc business does the society often go into?
ix.
Is the membership of the society limited
to the indigene of the local government alone?
x.
Has the society been able to meet the
demand and aspiration of the co-operators fairly well?
xi.
How far as the society been beneficial
to all the co-operators?
xii.
Is the society benefiting from the
statutory fund of the local government council?
xiii.
What is the rating of the society by the
co-operators (members)?
xiv.
Are he management committee’s members
partial in treatment of the co-operators?
xv.
Are the members of the society happy
being members?
xvi.
Does the society give loan to members
for the purpose of buying their own vehicles?
xvii.
How many members have benefited from
such vehicles loans?
xviii.
Does the society give loans to members
for the purpose of building of starting their own business?
xix.
Do they give loans to members for the
educational advancement of members?
xx.
How many members have benefited from such
educational advancement loan?
xxi.
How many members have taken loan for the
purpose of starting a business venture?
xxii.
What are the other means of benefiting
from the fund of the society?
xxiii.
How the society has bear problems from
the collection of loans given to members?
xxiv.
What are members’ feelings on the
general note about the management committees’ dividend/rebate policy?
LIMITATION OF THE STUDY
There are eighteen local government
councils in Ondo state. Each of which is expected to have one or more staff
co-operative societies. In view of this, it will be difficult, because of time
and financial constrants to cover all the local government councils in the
state.
Akoko North East local Government council,
Ikare in mind the possibility of the staff of the local government belonging to
two or more other co-operative societies.
DEFINATIONS OF SOME TERMS
1. Socio-economic
wellbeing: This is the improvement or development that has been brought upon a
person socially and economically.
2. Co-operative
society: A Co-operative society is 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
when registered, it becomes a legal entity which has perpetual succession.
3. Co-operators:
These are members of the Co-operative society who works together or jointly to achieve
common goals or purpose.
4. Assets:
This is the total financial worth in the society both fixed and current.
5. Management
committee: The Management committee are the body of people who have been given
powers and responsibilities by the members of the co-operative, to manage the affairs
of the co-operative societies. They are elected annually in the general meeting
of the society to oversee the affairs of the society for a given period of time
usually one year.
6. Credit
and thrift society: This is a co-operative society that functions mainly to
raise investment finance. The fund generated is given to members as loans at a
certain interest rate.
7. Consumer
Co-operative Society: They are earthrises owned by consumers and managed
democratically, which aim at fulfilling the needs and aspiration of their
members.
8. Limited
Function Co-operative Society: This is a society whose activity is limited to
one line of operation.
9. Multi-dimensional
Society: It carries out many lines of operations and engage in many businesses.
Sometimes, this type is called a multi-purpose Co-operative Society.
10.
Motivation: Is the energising of human
effort.
11.
Dividend: A dividend is a payment made
by a corporation to its shareholders, usually as a distribution of profit.
12.
Rebate: It is part of co-operative
society profit given to the co-operators in a way of reduction, return or
refund on what has already been paid or contributed. In a consumer co-operative
society the rebait is based on patronage or member participation in the society
business.
13.
Paris Club: The paris club is an
informal group of officials creditors whose roles are to find coordinated and
sustainable solutions to the payment of difficulties experienced by debtors
countries. They are often referred to as G.8. they are equally highly
industrialised nations. Nigeria happens to be one of their debtors.
14.
Mother Union: This is made up of two or
more primary co-operative societies.
CHAPTER TWO
REVIEW
OF RELATED LITERATURE
In this chapter, various concept of
cooperation will be explored with particular reference to the following areas:
I.
The concept of cooperation
II.
Meaning and origin of cooperation
III.
Evolution of co-operatives/ cooperation
IV.
Development of cooperative movement in
Nigeria
V.
Cooperative formation
VI.
Classification of cooperative societies
VII.
Strategies for revenue generation in
cooperative socities
THE CONCEPT OF COOPERATION
The word “co-operative” can be viewed
from different angles. This makes it hard to have a single definition. The
socio-political management peculiar to an environment dictates the
understanding of co-operation in such a society. Thus cooperation in a
socialist, communist, capitalist and mixed economy will be practiced
differently. The sector within which cooperation is mentioned affects its
meaning, while agricultural cooperative is different from industrial and other
forms of cooperation.
MEANING
AND ORIGIN OF COOPERATIVE
Many authors have defined co-operative
from different view and perspectives, but the common features of all definition
is the willingness of free and independent persons working or acting together
to archive common purpose or benefit.
The
advanced leaners dictionaries defines cooperation as “the spirit of working
together to archive common purpose”, from the following cooperation consist of;
·
More than one person
·
Willingness to come together
·
Interaction and communication
·
Same motive of achieving common goal
The
word “cooperative” is used as an adjectival noun of the word “cooperative(s)”
meaning “working together”.
I.N.P Okonkwo in his book
“Introduction to the Study of Cooperatives” defines cooperative society as a
voluntary of free and independent persons, faced by the same economic problems,
who voluntarily pool their resources on the basis of equality through joint
effort and mutual participation to remedy their plight.
This
definition emphasize
·
Common economic problems of members
·
Equality of resources contribution
·
Joint effort and mutual participation
Cooperatives
date back as far as humans being have been organizing for mutual benefits,
tribes were organised as co-operative structures, allocating jobs and resources
among each other, only trading with the external communities. In alpine
environments, trade could only be maintained in organised cooperatives to
achieve a useful condition of artificial roads such as Vaimala in 1472.
Robert
Owen was a social reformer and a pioneer o the cooperative movement
(1771-1808).
In
1761, the Fenwick Weavers society was formed in Fenwick, East Ayrshire,
Scotland to sell discounted oatmeal to local workeers, its service expanded to
include assistance with savings and loans, emigration and education. In 1810,
Welsh social reformer Robert Owen from newtown in mid-wales and his partners
purchased new Lanark mill from Owen’s father-in-law David Dale and proceeded to
introduce better labour standards including discounted retail shops where
profits were passed onto his employees. Owen left New Lanark to pursue other
forms of cooperative communities were set up in Elasgons, Indiana and
Hampshire, although ultimately unsuccessful in 1828, William King set up a
newspaper, “The Co-operator” to promote Owen’s thinking having already set up a
co-operative store in Brighton.
The Rochdale Society of Equitable pioneers,
founded in 1844, is usually considered the first successful cooperative
enterprise, used as a model for modern co-ops, following the Rochdale
principles a group of 28 weavers and other artisans in Rochdale, England set up
the society to open their own store selling food items they could not otherwise
afford. Within ten years there were over 1,000 cooperative societies in the
United Kingdom.
EVOLUTION OF CO-OPERATIVE OF
COOPERATION
The developments od cooperatives can
be classified into four catigories namely:
·
Natural Cooperation
·
African Traditional Cooperation
·
The Rochdale Experience
·
The Legalised cooperatives
A.
NATURAL
COOPERTION
Naturally,
men by creation live and survive through collaborate efforts. Hence it can
inferred that God supported the Spirit of Cooperation, when Adam was created
God realised that Adam alone could not perform all his assigned duties, He
created Eve to cooperate with him so they can jointly perform the assigned
duties.
B.
THE
AFRICAN TRADITIONAL COOPERATION
Before
the advent of modern co-operative societies, Africans by nature are generally
their brother’s keeper. Prior to the introduction of the medium of exchange
Africans lived on communal life, where they collectively assisted one another
to build their houses of till their farm lands.
In
Nigeria the various ethnic groups had their own ways of helping each other through
cooperation. The method and manner differ from one ethnic group to another, the
pattern was dictated by the economic activities predominant in each area. In
the western part of the country where the yoruba’s live, the mainstay of their
economy was trade and commerce. Ajo/Esusu was what they used in helping each
other where every member of the group contributed to a fund and each member
took his turn in the fund. “Esusu” was prevalent in the East where the Ibos are
predominant. ADASHE was what the Hausa’s used in the north.
Along
with the ADASHE the Hausa’s used another form of collaborative arrangement called
“GAYYA”, where every member of the society come together to partake in either
the construction of roads, bridges and market square in the community by
combining their efforts and resources.
From
the following, it is glaring that Nigerians are not aliens to cooperation,
Adeoye 1996 asserted that when modern cooperatives became operatonal in Nigeria
the Traditional cooperation’s dictated the direction. Hence cooperative society
grew along the traditional lines of cooperation and pattern of trade.
C.
THE
ROCHDALE EQUITABLE PIONEERS EXPERIENCE
The
history of modern cooperative societies can be traced to August, 1844 in a
small number of 28 working class people launched the first ever successful
cooperative society. The cooperative society was a consumer type. They
mobilized capitals by contributing few “Pennies” weekly, later they opened a
small consumer shop where they sold goods of high quality and of daily
consumption.
The
pioneers set out their aim in “Rule first” of the societies 1844 Rule book. The
aims started with the opening of a shop, then extended through housing,
manufacturing and farming and ending with “to arrange the power of production,
distribution, education and government” along cooperative lines.
The
Rochdale pioneers cooperatives preceded them; the Rochdale became the prototype
for societies in Great Britain. Rochdale pioneers are most famous for designing
the Rochdale principles, a set of principles of cooperation that provided the
foundation for the principles on which co-ops operate on to this day. The model
the Rochdale pioneers used is a focus of study within co-operatives economics.
The success story of his endeavour was spread to other parts of Europe,
America, Asia the continent of Africa, Austria and Ocean Subcontinent.
D.
LEGALIZED
COOPERATION IN NIGERIA
The
legalized cooperatives started in 1993 by Mr C.F Strickland who was working in
India after Mr Nicholson has been commissioned to under study the rural credit
cooperative system in Germany that was transferred to India. The feasibility
report presented by Mr C.F Strickland in April, 1934 after makig an
investigation tour of the country marked the introduction of modern cooperative
in Nigeria. His report highlighted the following facts;
·
That Nigeria was good for the
introduction of cooperative society
·
Stated the objectives of cooperative
societies
·
Listed the nature of cooperative society
·
Listed the type of cooperative society
which fits into the Nigeria environment
The
report seriously and strongly recommended the establishment oof cooperative society.
In 1935, the cooperative ordinance was promulgated, while in 1936, a
cooperative department was established which drew up the regulations for the
immediate establishments and running of cooperative societies. The first
registrar of cooperative society was appointed in the person of Major E.FG in
1935.
DEVELOPMENT OF COOPERATIVE
MOVERMENT IN NIGERIA
Modern
Cooperative movement in Nigeria dated back to the cocoa farmers in the western
part of Nigeria. They were organised into cooperative societies. These
societies were mainly thrift and loan societies established to forestall the
exploitation of farmers by money-lenders and middlemen.
Ijare
(1978), while tracing the historical development of Nigeria cooperatives over
the year opined that membership in cocoa cooperative marketing society rose
from 4850 in 1935 to 9300 in 1938, while the quality of cocoa handled also grew
from 1600 tone in 1935 to 43,000 tonnes in 1938, by 1960 marketing cooperatives
had taken some roots in western Nigeria.
In
the Eastern part of Nigeria, marketing cooperatives were the pioneering
cooperative effort. After 1970, credit cooperative took the dominant position.
This could be ascribed to the effect of the civil war or as a result of the
esusu credit societies, particularly, in the calabar geographical area.
Cooperative
growth in Northern Nigeria was initially slow. However, the rationalization of
1956 brought dynamision into the movement in the North. Initially, the emphasis
was on credit, followed by dealing in groundnut and cotton. It is imperative to
note that cooperatives were aided by marketing boards, as well as by government
ministries which helps to supply the logistics items, technical and
administrative staff than trained staff, supervised and audited the accounts of
the societies.
COOPERATIVE FORMATION
The
defining characteristics of a cooperative are that it is a business owned and
controlled by the people who use its services. Four additional features that
characterize co-ops are: service at cost, benefits proportional to use,
democratic control and limited return on equity.
Co-ops are different from for-profit
businesses which are owned by one or more investors whose intent is to make a
profit by selling goods and services to other businesses and individuals.
Co-ops are also distinct from non-profit organisations which are intended to
provide educational, charitable and other services and must reinvest any profit
they make in their own operations or donate them to other non-profit
organisation or to government agencies.
Cooperatives can be divided into four
main categories, Producer cooperatives are formed by farmers, crafts people and
other producers to purchase supplies or services and to market products.
There
are seven main steps in forming a cooperative or a “co-operative-like”
organisation.
1. Establish a steering committee:
In some cases, a group of people who share an idea for a cooperatives forms a
steering committee and develops a plan and a time table for researching and
developing a co-op. in other cases, an initial organizing group convenes a
meeting of potential co-op members to test out the level of interest in the
co-op idea.
2. Conduct a feasibility study:
the steering committee either conducts a feasibility study themselves or hire a
consultant to carry out the study. The purpose of the body is to examine
critically opportunities and obstacles that might make or break the formation
of the cooperative. These critical issues include the number and interest level
of potential members; market issues (can the co-op get better prise, better
quality or better services than potential members currently get through other
means?).
In some cases, local or state
governments or foundations may provide financial or technical assistance in carrying
out a feasibility study
3. Draft Articles of Incorporation and
Bylaws: In order to conduct business, a cooperative has to
be incorporated under appropriate state structure. Most stats have statures
especially for co-operatives; other have more general corporate statuses. The
steering committee should select legal consent to craft or review the articles
of incorporation and bylaws.. the articles of incorporation describe the kind
and scope of the cooperatives business and must be filed with the secretary of
state.
4. Prepare a business plan:
if the feasibility study results are favourable, the steering committee carries
out or commissions a detailed business plan, the business plan is a more
in-depth version of the feasibility study. It serves two primary purpose, to
provide a blueprint for the development and initial operation of the co-op and
to provide supporting documentation for potential members, financial
institutions and other investors.
5. Secure Financing:
Co-operatives are greatly in the amaint of capital they need to get up and
running. The business plan should include the amount and type of financing
needed by the co-op and a strategy for getting it.
In addition to member equity, most co-ops need to
borrow money to get started and to maintain their operations. Loans can come
from banks and other financial institutions (including several national banks
for co-operatives that have special charters specifically to provide such
loans). Other loan sources are Local, State and Federal government programs and
various private for profit and non-profit organisations.
6. Recruit Members: Although
member recruitment is listed as the sixth step in performing a co-op, laying
the ground work for the co-ops membership base needs to begin when the steering
committee first meets.
7. Recruit Personnel:
the recruitment of personnel is listed as the last step of the co-ops formation
process because the co-op is not definite “Go” until the necessary financial
has been lined up. The approach also as the effect of making investors fell
more comfortable about financing co-ops because proposed management staff have
been identified. For some lenders, competent management is the most important
thing they look at in making a loan decision.
A.
CLASSIFICATION
OF CO-OPERATIVE SOCIETIES
Co-operative
societies can be broadly classified into
A. Primary co-operative:
it is made up of natural persons as member by law, a primary co-operative
should be made up at least 10 members (Adeoye 1996). There is no upper ceiling
on membership of any primary co-operative (Adeoye 1996).
B. Secondary Co-operative: a secondary co-operative is made up of at
least two or more primary co-operatives. It is a union of Co-operative
societies and they are usually referred to as mother union. It should be noted
that individual members of a secondary society
Co-operative
societies as classified above can be further be classified based on the
following parameters.
I.
Classification by their activities
/Functions
II.
Classification by occupation/Interest
III.
Classification by Geographical coverage
Adeoye
(1996), listed the o-operative societies that can fall under each
classification above:-
I.
Faming co-operative for farmers
II.
Marketing co-operatives for those
involved in marketing functions
III.
Artisan co-operatives for those involved
in vocational trade or craft
IV.
Credit co-operatives for those in need
of loans and savings
V.
Consumer co-operatives for those involved
in consumer items
VI.
Transport co-operatives for those
engaged in transport activities
B.
CLASSIFICATION
BASED ON INTEREST OR OCCUPATION
This classification is based on the
inters or occupation of members such as;
I.
Civil servant: civil servants
multipurpose co-operative society limited.
II.
Polytechnic staffs: Adekule Ajasin
University, Akungba Akoko multipurpose co-operative limited.
III.
Local Government Council workers: Akoko
Nprth East Local Government council staff multipurpose co-operative society
limited
C.
GEOGRAPHICAL
COVERAGE
Co-operatives can also be grouped based
on area or territorial coverage such as Local, state, National and international.
I.
At the local level, example are clan
co-operatives, Village co-operatives or Local government Co-operative Level.
II.
State or regional Co-operatives include
for example, Akwa Ibom co-operative federation limited representing the
interest of co-operative movement in the State
III.
National Level; where co-operatives are
formed to cover the entire country for instance Co-operative federation of
Nigeria limited that caters for all co-operatives in the country.
IV.
International Cooperatives: these are
world cooperative bodies representing co-operative interest and welfare on a
global level for instance;
a.
International Cooperation alliance(ICA)
established in 1895 with membership from over 65 countries’.
b.
International Federation of Agricultural
Producers (IFAP). Other forms of classification apart from the above mentioned
major classifications can be consumer cooperative society, which is a retail
organisation formed by some individuals for the purpose of catering for it
members, it Aims include:
i.
To run a consumer shop with quality
products which can be purchased by the members and others.
ii.
In line with Rochdale’s principle, the
society is formed to promote the economic and social wellbeing of its members.
iii.
To eliminate excessive profits of
middle-men
D. COOPERATIVE THRIFT AND CREDIT
SOCIETY
This
is a credit society that can be formed by all classes of people. The
cooperative thrift and loan society is most suitable for the working class.
Okonkwo Jrop (1980), stated that the main objective of cooperative thrift and
credit society is to mobilize capital from their members and give loans to
their members at minimum interest rate
The
benefits of credit thrift co-operative society include;
i. Granting
of loans and credit facilities to its members at a reasonable interest rate.
ii. Encouraging
the spirit of saving.
iii. Promoting
the social and economic condition of the members.
E. MULTIPURPOSE CO-OPERATIVE SOCIETY
These
are co-operative societies with multidimensional activities. Such activities
performed may include credit and thrift, retailing of consumable items,
productive and manufacturing activities and any other activities stated in the
form for registration.
F.
PRODUSE
MARKETING CO-OPERAIVE SOCIETY
This
has the responsibilities to market agricultural cash crops on behalf of its
members. It is a business organisation established by its members for the
purpose of trading in cash crop.
G. HOUSING AND CO-OPERATIVE SOCIETY
According
to Okonkwo, housing co-operatives are formed for the objective of housing its
members, that is, helping them to build their own houses while building
c0-operative merely dues I building houses which can be rented to members and
non- members or an be sold out rightly.
STRATEGIES
FOR REVENUE GENERATION IN CO-OPEERATIVE SOCIETIES
According
to Mr S.K Akinnagbe, principal registrar of co-operatives the following are
identified as source of revenue to a co-operative society.
i.
Share: the co-operative recognise share
holdings as evidence of being a member of a society, and so when a society is
formed, its shares will be subscribed to by members and payment is made after allotments
are made. The credit societies are particularly good in operation of shares as
a source of revenue.
ii.
Saving; saving constitute another
reliable source of income to the cooperatives. At the meetings of the
society(which is monthly), every members must pay a minimum amount agreed upon
by thee society. The minimum monthly savings again is usually fixed during the
annual general meeting of the society.
iii.
Plough
back profit: Another way or raising the share of
the society is to plough back the dividend. Ploughed back profit is a part of
the society profit which is not distributed to members as dividend but used to
increase the capital base of the individual and thus increasing the capital
base of the society.
iv.
Borrowing:
borrowing is another means of sources of revenue to the cooperatives societies
that are affiliated to unions. Such unions can on the approval of the directors
of cooperatives produce loans from bank and distribute some to societies under
it.
v.
Entrance
fees:
when a new member is about to join a society, he or she is made to pay the
entrance fee immediately. This is yet another source of revenue for the society.
vi.
Operation
of fixed deposit account: where a society union has suplus
fund not yet committed, such fund could be put in an fixed deposit account that
commands high interest rate for a period of three, six or nine months. The
interest so earned is another source of income.
vii.
Surplus
from the business of the society : where a society is registered as a
multi-purpose society(CMS), it has the right to carryout any legal business for
the purpose of earning revenue. In this case, the sky is the limit for such a
society if the fund is there and if the management team knows what they are
doing and are honest to thee society
Some ventures a multipurpose cooperative
society can go into are;
a. Operation
of a slaughter slab
b. Daily
contribution business
c. Operation
of consumer outfits.
d. Operation
of photocopy machine.
e. Operation
of computer business centre.
f. Distribution
of foods stuff like yams, rice, beans, and so forth.
g. Purchase
and sales of cashew nuts. The surplus generated from business ventures of these
natures is always meaningful to the society.
viii.
Fines:
every
society has its own reasons for imposing fines on its members could be for lateness
to meetings or complete absence from it. Unwanted behaviour at meeting may also
Attract fines for whatever reason for imposition. Fines constitute a source of
revenue to the society.
ix.
Trade
Credit: One reliable way of financing projects in
co-operative society is purchase waries including raw materials on credit.
Payment can be made thereafter. This method is particularly useful for the
consumer Societies.
x.
Government
Subsidies /Grants: A subsidy could be cash payment made
government to the cooperative on certain produce in order to keep price down
and toincrease output and thus increasing the supply of the commodity.
Recently the Ondo state Government made
available to some cooperative about 5,000,000 to boost production. Distribution
of fertilizers to farmers at subsidized rate is also part of way of raising
revenue.
CHAPTER
THREE
This
chapter presents the research design, population and sampling, the research
instrument used, the validity and reliability of the instrument, administration
of the instrument and methods of data analysis.
RESEARH DESIGN
The study is a description survey as it
enables information obtained from representative sample of the population to be
used to describe as they exist.
POPULATION OF THE STUDY
The population of the study consists of
staff of Akoko North Local Government council, Ikare akoko who are bonafide
members of the staff of the cooperative society existing in the council
SAMPLE AND SAMPLING PROCEDURE
The sample for the study was selected from
the co-operators in the council. Stratified random sampling was used to choose
the sample. the co-operators were stratified along the six departments in the council
which are Administration Personnel, Treasury, Agriculture, community works and
Primary health care departments.
In other to have a good representation of
each department, ten co-operators cutting each department in the management
committee of the co-operative were equally interviewed.
RESEARCH INSTRUMENT
Information was obtained through both
personal interviews and questionnaire. The management committee consisting of
the president, secretary and the treasurer were interviewed to elicit
information that are very specific which were not embodied in the
questionnaire.
Closed-ended
questionnaire with set of alternative answers from which respondents could
close their answers where applicable to his or her conception were used.
The questionnaire consisted of three parts
namely section A, B and C. section A sought answers to questions such as sex,
department, number of years with the society and so on. Section B was designed
to elicit information by the co-operators of the way forward for improving the
quantity and quality of the services provided by the society.
VALIDITY OF THE INSRUMENT
Two
exert on the field who have been involved in may research work validated the
questionnaires and the project supervisor finally modified the items before
they were administered to the respondents.
RELIABILITY OF THE INSTRUMENT
To determine the reliability of the
instrument, test and retest method of reliability was used. The questionnaires
were administered to twelve co-operators randomly two each from the six departments
in the councils and their responses analysed. After two weeks, the
questionnaire were again administered to the same group of co-operators when
their responses were compared, they were the same showing that the instrument
used was reliable.
ADMINISTRATION OF INSTRUMENT
Sixty questionnaires, ten for each of the
six departments in the Local Government council were distributed personally by
the researchers for the purpose of gathering information. All the respondents
returned completed questionnaires, giving a one hundred present response.
METHOD OF DATA ANALYSIS
All responses in the completed
questionnaires were duly and correctly completed and used for computation.
Simple percentage method was used to analyse and interpret the data. The method
was also used to draw inference about the various distributions.
CHAPTER
FOUR
RESULT
AND DISCUSSION
RESULT:
Sixty respondents made up of 30 males and 30
females representing 50% of each were served with the questionnaires designed
for the study. The six departments in the Local Government Namely:
Administration, Treasury, Community Development, Primary health Care, Works and
Agriculture were evenly represented with each department having ten (10)
correspondents. Each of the junior staff and unfixed staffs of the Local
Government has a representative of 30 representing 50% each of the respondent.
Fifteen of the respondent representing 25%
of the respondent joined the society between one and two years ago, 33 of them
representing 55% of the respondent joined the society between three and four
years ago, while the remaining 12 respondents, representing 20% of the
respondents joined the society five or more years ago.
TABLE
1: CLSSIFICATION OF RSPONDENTS ON THE BASIS OF TAKING OF LOAN FROM THE SOCIETY.
|
RESPONDENT
|
Yes
|
No
|
Total
|
|
No of Respondent
|
53
|
7
|
60
|
|
Percentage of Respondents
|
88
|
12
|
100%
|
Source:
Questionnaire, Section B, Question 1
From
the Table 1 above, of the 60 respondents, 53 of them representing 88% returned
a “Yes” answer that they had taken loans from the society while only seven
respondents representing just 12% returned a “No” answer, meaning that they had
not taken any loan from the society. A
close at the 7 respondents who returned a “No” answer showed that they were
respondents who joined the society within a year or two?
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