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FACTORS AFFECTING THE
PERFORMANCE OF COOPERATIVES IN ENUGU STATE
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, Enugu 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 Enugu 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 Enugu 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 Enugu 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 Enugu state, the Enugu 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 Enugu 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 Enugu state.
2. To examine the activities of Enugu 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 Enugu 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 Enugu state?
2. What has been the efforts of Enugu state
cooperative federation towards the promotion of cooperatives in Enugu?
3. What has been the efforts of the
government towards the development of cooperatives in Enugu state?
1.5 Scope of the Study
The project work is an
assessment of the performance of cooperatives in Enugu 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 Enugu
south local government area of Enugu
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 Enugu south local government area.
And the societies are
as follows:
a. Makera thrift and credit multi-purpose
cooperative society.
b. 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 Enugu 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.
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