FACTORS AFFECTING THE PERFORMANCE OF COOPERATIVE SOCIETIES IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1   Background of The Study

Cooperatives are classified as one of the business organizations but operate  in a special way different from all other forms of business enterprises. The distributive nature of cooperative provided that they must be owned, used and controlled by their members.  In view of this, cooperatives are organized and managed through the  system of large or small, multipurpose or single purpose and  central or federal. All these systems put together are under direct coordination and supervision of the cooperative federation.

Yahaya, (2001) notes the cooperative federation is an organization where there are basic units at each level that  determine on their own initiative. The relationship between the federation which  is a higher organ and  the secondary societies which are lower organs is  that there is a dividing  line where the lower organs reserve to themselves certain functions and delegate others to the higher organs. Though the cooperative federation controls  the activities of cooperative to ensure efficiency, it has by the affiliated societies since such affiliated societies do not surrender their autonomy to the cooperative federation.                           

In Nigeria where the cooperative development is generally a state affairs, cooperatives are organized on three structures based on geographical locations namely village or town level (primary cooperatives) state or regional level (secondary cooperative), national level (tertiary cooperatives).

In the light of  the above, a  number of  states especially in the northern parts of the country, Kaduna inclusive, the cooperatives activities come under one umbrella known as cooperative federation limited.

In some states, particularly the former western and eastern regions, cooperative movement operates under a  central organization called cooperative union. However, there are numbers of tertiary cooperative organizations which equally perform central functions and represent Nigeria cooperative movements at international and regional level. These includes cooperative federation of Nigeria (CFN) which is affiliated to international cooperative Alliance (ZCA), National Association of cooperative credit union of Nigeria (NACCUN) which is affiliated to African cooperative credit and savings association (ACOSCA) and world council  of  credit unions (WOCCUN).

The establishment of cooperative federation in each state of the country is a reflection of which was obtained in the early cooperative movement in Britain. For instance, the first  successful consumer retail cooperative societies in 1844 were united under two  national federation known as cooperative wholesale society and  cooperative union Ltd. Similarly, the Irish agricultural wholesale society  which is popularly known as CWS is the central organization set up by the retail cooperative societies in united kingdom to meet their trading needs.

Other notable countries have similar central controlling bodies for cooperative activities. Like the approach in Israel empowers the Jewish cooperative association known as Hevaratt Ovdim to  supervise the activities of various cooperative affiliated to it.          

Furthermore, in Denmark, the Danish wholesale society known as (FDB) established in 1964 had  entered into agreement with the local  cooperation on voluntary basis to create voluntary claim. In this agreement, the FDB provided a number of services to the local cooperatives to ensure their survival and progress.

From all the aforementioned instances, the existence of a central working body to oversee the activities of cooperative societies, the case of Nigeria is not peculiar. The Kaduna state cooperative federation like other state federations regulates cooperative activates under the auspices of the state ministry of Agriculture it should however be noted that in different states, different names are given to the ministries where cooperative federation exists. Whatever their names, such ministries have their responsibilities towards cooperatives and of course cooperative federations.

Like all the other cooperative federations, the Kaduna state cooperative federation is responsible for cooperative efficiency and effectiveness in the areas of promotion, organization, coordination, supervision, limitation, administration, training, interpretation and advice. In Kaduna state, it is  doubtful if the cooperative federation is effectively performing these duties as the development of cooperatives, particularly primary  cooperatives are yet to obtain desired growth. Besides, most cooperatives societies in the state are  incapacitated in one way or the other making it difficult for such societies to impact maximally on the socio-economic lives of    the people.

1.2   Statement Of The Research  Problem

(ICA, 1995), Cooperatives of whatever types are organized to satisfy members, needs, be it economic, social, cultural  or political.

According to Amahahu (2006), people join cooperative for economic motives in most cases while others join for socialization and emotional motives as well as because of outside pressure. In Kaduna state, the Kaduna state cooperative federation. Like other cooperative federation is an apex body concerned mainly with the promotion, administration and legalization of cooperatives through its agency known as the cooperative department the relevance of the cooperative federation has been well documented in available literature (Yahaya, 2001, Ijere, 1975, Chukwu, 1990). It is  however, doubtful weather the Kaduna state cooperative federation is effectively performing these essential roles as there are obvious lapses  in cooperative movement in the state as  majority of the primary cooperatives are just  clutching to life.

1.3   Objectives Of The Study

        The followings are the key objectives of this study:

1. To assess the immediate factors affecting the performance of cooperatives in kaduna state.
2. To examine the activities of  Kaduna state cooperative federation and action plans to promote, organize, coordinate and supervise affiliated societies.
3. To show the level of government commitment towards cooperatives development in Kaduna state.

1.4   Research Questions

The following research questions were raised for the purpose of this study: -

1. What are the factors affecting the performance of cooperatives in Kaduna state?
2. What has been the efforts of Kaduna state cooperative federation towards the promotion of cooperatives in Kaduna?
3. What has been the efforts of the government towards the development of cooperatives in Kaduna state?

1.5   Scope of the Study

The project work is an assessment of the performance of cooperatives in Kaduna state but two societies (Makera thrift and credit multipurpose cooperative and Zumunchi cooperative society were used as case study.

This study is therefore restricted to Makera  district in Kaduna south local government area of  Kaduna state due to the large population involved and the scattered  nature of cooperative societies in the state. Due to the above stated reasons, the researcher chooses to limit two selected societies in Makera district in Kaduna south local government area.

And the societies are as follows:

1. Makera thrift and credit multi-purpose cooperative society.
2. Zumunchi multipurpose cooperative society, air force road, makera.     

1.6   Significance Of The Study

The study examines the factors affecting the performance of cooperatives in Kaduna state. the significance of this study to the state (government) cooperative societies,  cooperatives promoters, individuals and      even students cannot to over emphasized.

The result of this research work will help the state cooperative federation to be aware of the basic impediment that it has to contend with so that it could be more effective and articulate in its policies, promotional and supervisory activities.   

1.7   Limitations Of The Study

The findings of the study will help cooperative societies that are affiliated to the cooperative federation to be aware of the  activities of the cooperative federation, their legitimate  relationship and what obligations they  owe each other.  This will ensure orderliness, coherence and progress.

Cooperative members and other individuals alike will find the result of this study quite educative and enlightening as it appears that most of them are ignorant of the existence of cooperative federation and its multifarious functions.

It is also important to note that incoming students and other researchers will find  this study quite significant as they will use it as a reference material or a sampling board for their own work.