THE ROLE OF CREDIT AND SAVINGS COOPERATIVE SOCIETIES IN ECONOMIC DEVELOPMENT
(A Case Study of Aba North Multipurpose Cooperative Society Ltd)

ABSTRACT

It has been stated, observed and agreed that the cooperative societies are formed mainly for the betterment of the economic and social conditions of the members. The project is on the rule credit and development, a case study of the Aba North multipurpose cooperative society. The ultimate objective of this study is to critically economine the impact and rules which credit and savings cooperative play in promoting the socio-economic condition of people of Aba North multipurpose cooperative society. Furthermore, the sample size of this study comprised members of various credit and savings cooperative staff, members of (120) one hundred and twenty respondents irrespective of sex. A survey research was used for this study research questions more distributed and some more used. The questionnaire were analyzed and converted to percentages and chi-square.

Discussion on findings where relevant or necessary will be made to throw light on the basic facts that would lead to possible solution. This study have been divided into 5 chapters in order to present a concise work. Each chapter is structured in a way that both students, non-students and practitioners will have little or no difficulty in understanding of research. Chapter 1 is the introductory part which is made up of the study statement of problems, objectives of the study, scope of the study, relevance of the study.  Chapter 2 covers the review of related literatures. Chapter 3 shows the method of collecting data mainly through many sources. Chapter 4 shows the hypothesis resting data analysis; results and findings were also discussed. Finally, chapter 5 covers the summary, recommendation and conclusion.

TABLE OF CONTENTS

Title page       -      -      -      -      -      -      -      -      i

Approval page        -      -      -      -      -      -      -      -      ii

Dedication      -      -      -      -      -      -      -      -      iii

Acknowledgement -      -      -      -      -      -      -      iv

Abstract -      -      -      -      -      -      -      -      -      v

Table of contents    -      -      -      -      -      -      -      vi

CHAPTER ONE

1.0  Introduction    -      -      -      -      -      -      -      1

1.1   Background of the study       -      -      -      -      -      2

1.2  Statement of the problem     -      -      -      -      3

1.3   Objectives of the study  -      -      -      -      -      4

1.4  Statement of hypothesis       -      -      -      -      -      5    

15   Significance of the study       -      -      -      -      -      6

1.6  Scope of the study -      -      -      -      -      -      7

1.7  Limitation of study -      -      -      -      -      -      7

1.8  Definition of terms -      -      -      -      -      -      8

CHAPTER TWO

2.0  Literature review    `-    -      -      -      -      -      10

2.1Definition of origin of credit and savings in

cooperative society-      -      -      -      -      -      -      14

2.2   Types of credit and savings cooperative societies

 in Aba North -      -      -      -      -      -      -      -      14

2.3  Needs for credit and savings in cooperative societies 15

2.4  Advantages of credit and savings cooperative

 societies        -      -      -      -      -      -      -      -      -      17

2.5  Problems of credit and savings cooperative societies 19

2.6  Importance of credit and saving cooperative societies towards economic developments-      -      -      20

CHAPTER THREE

3.0  Research design and methodology        -      -      -      23

3.1  Introduction    -      -      -      -      -      -      -      23

3.2  Research Design     -      -      -      -      -      -      23

3.3   Source / method of data collection      -      -      -      24

3.4   Population and sample size   -      -      -      -      26

3.5  Sampling technique-      -      -      -      -      -      27

3.6  validity and reliability of measuring instrument     27

3.7  Method of Data Analysis        -      -      -      -      -      28

CHAPTER FOUR

4.0   Presentation and Analysis of data  -      -      -      30

4.1  Introduction    -      -      -      -      -      -      -      30

4.2   Presentation of data      -      -      -      -      -      31

4.3  Analysis of data      -      -      -      -      -      -      31

4.4  Test of hypothesis  -      -      -      -      -      -      36

4.5   Interpretation of results        -      -      -      -      -      41

CHAPTER FIVE

5.0  Summary conclusion and recommendation   -      42

5.1   Introduction   -      -      -      -      -      -      -      42

5.2  Summary and findings   -      -      -      -      -      42

5.3  Conclusion      -      -      -      -      -      -      -      43

5.4  Recommendations -      -      -      -      -      -      44

       References      -      -      -      -      -      -      -      46

       APPENDIX       -      -      -      -      -      -      -      47

CHAPTER ONE

1.0   INTRODUCTION

Credit cooperative stated in Germany with the aim of combating the poverty, indebtedness and hopelessness of the German present farmers of the 19^th century. Credit cooperatives made tremendous success and developed into the village / community banks and the urban cooperative credit / perphes banks of today which have been adopted by different countries.

Traditional cooperative in Nigeria have been in existence before the arrival of modern cooperatives in the firm of contribution group or meetings which is referred to as staff mutual help groups. Specifically, credit and savings cooperative society is been called Esusu in Gocoba Adasti in Hausa and Isus in the hand. Traditional credit organization have multiplied and gained popularity in all parts of Nigeria inspits of the introduction of the modern credit institutions like commercial banks. There is hardly large number of societies saving as rural banks. It is regarded as the last hope of common man.

1.1   BACKGROUND OF THE STUDY

Cooperative according to ICA (1895) said that it is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly ownen and democratically controlled enterprise.

 Furthermore, credit and savings society according to Obodochi (2006) said that it is a voluntary association of people who pay fixed subscription at a fixed place at regular interval, usually, daily, weekly or monthly. The members therefore regards the organization as a pool of short term fund, from where money can be drawn periodically.

However, the credit and saving cooperatives society limited in Aba North multipurpose cooperative are concerned with empowerment of member whose vitality are derived from the concept of service to members and the community. Credit and saving cooperative societies limited in Aba north multipurpose. Continue to exist due to high interest rate and other condition from modern credit institutions which is beyond the reach of income carners.

Furthermore, because of there condition from modern credit institution, people of Aba north multipurpose cooperative society limited come together to look for a way to improve their standard of living. This therefore led to the formation of various credit saving cooperative societies limited in Aba north which have contributed to the development of the economy of the people.

1.2   STATEMENT OF THE PROBLEM

There are series of problems that arises in the economic development of Aba north multipurpose cooperative society limited.

This study with find out how the economic development of Aba north multipurpose cooperative societies limited will be improved and contributed more meaningful to the standard of living of the people.

Some of the problems encountered by the by the people of Aba north multipurpose cooperative society limited stated as follows.

This research seeks to established that credit and saving cooperative societies limited have to come in so as to improve or establish poverty and indebtedness of the modern credit institutions and make life easier to the people.

The study also will focuss on the types of credit and savings cooperatives in Aba north multipurpose cooperative society limited in existence, the activities of the societies and their numerous advantages.

1.3   OBJECTIVES OF THE STUDY

This study focuses on findingout the roles which credit and savings cooperative societies limited play towards economic development of Aba north multipurpose cooperative society limited.

Most of the objectives are as follows:

1.       To critically examine the impact which credit and savings cooperative societies play towards promoting the economic development in Aba state.

2.       To examine the various ways by which the numerous problems finding the credit and savings cooperative societies in Aba north multipurpose cooperative society limited.

3.       To identify the needs and importance of credit and savings cooperative societies towards economic development as practiced by Aba north multipurpose cooperative society limited of Abia state.

1.4   STATEMENT OF HYPOTHESIS

As a guiding principles to achieve the aims already stated, and basis for empirical evidence judgment to establish that action is without purpose, it becomes imperative to have hypothetical statement which is to be accepted or rejected at the end of this research.

The following hypothesis shall be stated;

H0: The roles of credit and savings cooperative societies have no significant effect on economic development.

H1: The rules of credit and savings cooperative societies have significant effect on economic development.

H0: The actions of credit and savings cooperative societies have a negative influence on its members.

1.5  SIGNIFICANCE OF THE STUDY

It help to organize and provide  its members with convenient and secure means of saving money and of obtaining credit at reasonable rates interest. It is organized within a group already united by a common bond and care known to each other.

Generally the study of credit and savings cooperative societies has create a great impact in the area of study.

1.          To determine the important / relevance of credit and savings cooperative societies

2.          The study intends to explore how credit and savings cooperative can contribute to the economic development of its people in general

It also serve a remedy for rural and urban poverty. The type of cooperatives is suitable for working class people, small scale business men and women, neighborhoods, social group of culture or economic nature.

1.6  SCOPE OF THE STUDY

The scope of this project report covers the study of the concept of credit and savings which has to do with those issues, importance and problems that are pertaining to cooperative and as well as their members towards economic development.

This study will as well cover all the activities of credit and savings north multipurpose society.

1.7  LIMITATIONS OF THE STUDY

In carryout this research project one has to come up with a number of constraints which are as follows:

1.          Inadequate information: in most cases this people provide the research er with an incomplete information why because the research is unfamiliar to them.

2.          Time factor: Time is a limiting factor to this project / research work. This project research was carried out under normal academic session. This research has no other option than to combine academic timetable with the project work.

3.          Disappointment: Here the people Aba north multipurpose cooperative society refuse to keep appointment, which the reason is best known to them.

DEFINITION OF TERMS

 Below are the definitions of terms used in the write up of the project.

1.       Combating: This means fighting

2.       Voluntarily: This means willingly without being forced.

3.       Pool: This means a supply of things or money that is shared by a group of people and can be used when needed.

4.       Empirical: This means based on experiment or experience rather than ideas or theories.

5.       Imperative: It means very important and needs immediate attention or action.

6.       Pertaining: To exist or to apply in a particular situation or at a particular time.

7.       Explore: This means to travel to or around an area or a country in order to learn about it.

8.       Tremendous: This particular word mean very great.

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