ABSTRACT
This research is an attempt to bring to light the effectiveness of credit administration in cooperative credit society in various cooperative societies based in Enugu North Local Government Area of Enugu State. This research has five chapters with introduction. It tells about the meaning of cooperative credit society, credit administration, the statement of problem, objectives of study, significance, scope and limitations as well as definition of some cooperative and general terms. Chapter two, took a look at related literature review of authors about credit cooperative and credit administration, its weakness, effect of credit administration and its importance as well as problems associated with it. Chapter three, talked about method use by the researcher in gathering information i.e. the main the research questionnaires was carried out and investigation method. Chapter four, was about the presentation of data, the interpretation and analysis of the data obtained. It also talked about responses of respondent. Chapter five, conclusion, pinpoints the major problem, which inhabit the full success of credit administration and same suggested solution which are necessary to convert some of these problem.
TABLE OF CONTENTS
Page(s)
Title page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of contents vi
CHAPTER ONE
1.0 Introduction 1
1.1 Background of study 1
- Statement of
problem 3
- Objective of study 4
- Research questions 5
1.5 Research Hypothesis 6
1.6 Significance of the study 6
1.7 Scope of the study 7
1.8 Limitations of the study 7
1.9 Definition of terms 9
CHAPTER TWO
2.0 Literature Review 10
2.1 The nature of cooperatives 10
2.2 Credit Cooperative and their problems 14
2.3 Source of Cooperative Finance 17
2.3.1 Internal source 19
2.3.2 External Source 29
2.4 The process of credit administration 35
2.5 The loan committee 39
2.6 Assessment of loan application 40
2.7 Terms of credit 43
2.8 Supervision of Credit 45
2.9 Loan recovery 49
2.10 Credit cooperative in Enugu North LGA 51
2.11 Factors militating against efficient credit
administration 52
CHAPTER THREEÂ
3.0 Research Methodology and Research Design 55
3.1 Area of Study 56
- Population
Studied 56
- Sample size 57
3.4 Method of data collection 59
3.4 Method of data analysis 59
3.5 Source of data 59
3.6 Method of data analysis 60
CHAPTER FOUR
4.0 Data Presentation, Analysis and Interpretation 63
4.1 Introduction 63
4.2 Data Presentation 63
4.3 Data Analysis 63
4.4 Test of Hypothesis 75
CHAPTER FIVE
5.0 Summary, Recommendation and Conclusion 79
5.1 Summary 79
5.2 Conclusion 81
5.3 Recommendation 83
Bibliography 85
Appendix 87
CHAPTER ONE
1.0Â INTRODUCTION
1.1Â BACKGROUND OF STUDY
Agricultural credit in Nigeria dates back to the 1930s but organized credit to farmers did not start until 1972 when the Nigeria Agricultural and Cooperative Bank (NACB) was established.
The awareness of the serious decline in agricultural production was probably partly responsible for the establishment of the bank.
The NACB is not the only financial institution which provides agricultural credit. Prior to the establishment of NACB, agricultural credit scheme was operated by some agencies such as the Ministry of Agriculture’s Supervised Credit Scheme, Agricultural Credit Cooperative, cooperative thrift and loan scheme, farmer’s multi-purpose cooperative societies. Most of these institutions were not effective sources for strictly agricultural credit. There was a lot of evidence that creditors borrowed money for agriculture but diverted it to other ventures.
Again, credit was often extended to only favorites and scarcely to genuine small –scale farmers. Besides they could not meet the collateral and equity contribution requirement, a situation that compelled a significant proportion of the farmers to seek for other sources of credit.
According to Dachaba quoted from Cardoso, (1987) a survey carried out should that 58% of farming related borrowing was from family and friends, 24% from private money lenders, 15% from merchants and only 3% from financial institutional sources. However, while family and friends charged little or no interest. Organized credit facilities for Nigeria’s rural farming population would reduce the dependence on sources other than the formal financial houses.
It is against this background that the researcher is to investigate how credit will be effectively administered in cooperative enterprises. This will enable us to identify the major problem associated with credit administration and seek for solution to these problems to ensure continued existence of the cooperative.
1.2Â STATEMENT OF PROBLEMÂ
Cooperative society mobilizes credit to their members through the savings of members. It has been observed that they are inefficient in mobilizing and utilization of credit. Many problem lead to this ineffective mobilization of credit. They are as follows:
- Inadequate fund for loan purpose
- Inefficient management of loan
- Faulty loan policy which may sometimes emphasize on credit worthiness of borrowers and not viability of project.
