Financing Of Co-operative In Engugu State (a Case Study Of Selected Co-operative Society In Igbo Etiti Local Government Area

Cooperative Economics Project Topics

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This research work was undertaken to access and highlight on the aspect of financing cooperative societies in Enugu State precisely in Igbo Etiti Local Government Area. The work intends to advance the following. To pinpoint those factors hindering the financing of cooperative society in Enugu State. To show case the different methods in which cooperative societies generate funds for their organizational activities. On the basis of the finding, cooperative societies in Igbo Etiti Local Government Area have helped to promote members economic interest and encourage then to save funds. The recommendation is of the opinion that government should provide funds and enlightment programme on cooperative education to its members and non-members.

Upon the analysis of data this conclusion was drawn. That financing of co-operative society should not only come from the personnel savings of the members, government should also supported than.








Title page                                                             i

Approval page                                                       ii

Dedication                                                            iii

Acknowledgment                                                   iv

Abstract                                                               v

Table of content                                                    vi


1.0     Introduction                                                 1

1.1Background of the study                                1

1.2Statement of the study                                   4

1.3Objective of the study                                     6

1.4Scope of the study                                         7

1.5Limitations of the study                                 8

1.6Significance of the study.                               9



2.0      Literature review                                                   11

2.1  Definition and meaning of co-operative          11

2.2      Sources of capital for co-operative society              15

2.3      Management problems in co-operative

organization and its effect                                      19

2.4      Problems of finance co-operative societies.             22

2.5      Strategies/ways of improving the capital base of

co-operative enterprise                                           23


5.0   Summary of finding, recommendation and

Conclusion                                                              35

5.1   Summary of finding                                                35

5.2      Recommendation                                                    36

5.3      Conclusion                                                              38

Bibliography                                                           40





 Cooperation is a behavioral pattern that lubricates that relationship between man and guarantees the success of any joints human venture or product. Its virtues are trust, confidence and well feeling. cooperation society is a business organization that functions using the tenancy of cooperation in its practices. Those tenancies of cooperation are the Principles of cooperative.

Co-operative societies as a form of business organization carries about when people with common interests unit themselves into a group, financed and controlled by them for the purpose of achieving heir goals.

In Nigeria co-operative have been in existence for a long period of time. This is understandable because most communities in Nigeria and Africa in general had series of associations.

These organization have the following objectives

-              Construction of rural roads and bridges

-              Communal farming and building of houses through collective power

-              Local contribution of funds for helping members (ISUSU).

International cooperative Alliance (I.C.A) defined  cooperative as an Autonomous association of person who joined together voluntarily to meet their common economic social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.

Co-operative have been playing their own major role in the economic development of the Nigerian economy. Its  efforts have been felt in the areas of creating job opportunities to unemployed youths, manpower training and leading to the improvement of the standard of living of beneficiaries.

Most co-operative societies are being threatened by mismanagement and lack of capital. These co-operative societies found it difficult to finance heir enterprise due to the fallowing factors.

Mismanagement of the few capital owned by the co-operative business enterprises. Difficulty in obtaining loans form banks due to lack of collateral and limited capital.

Many co-operative in Nigeria engage business transaction in which they sell consumer items in  retail quantities, some  sell durable household items and such other consumer products. The capital base of this co-operative enterprises are relatively low. It is therefore in this light that the researcher have decided to find out the possible strategies for financing and improving  the co-operative business enterprises in Enugu state with case study of few registered co-operative societies in Igbo Etiti local Government  area of Enugu state.



At this stage it is important to identify and state the problems that this project seeks to address in relation to the financing of cooperative societies in Enugu state precisely in Igbo Etiti Local Government area.

It has been noticed among co-operatives business enterprises in Igbo Etiti Local Government area that in as much as they make profits from sales. It is still not enough. Co-operative society are faced with various constraints that militate against the capital base of the rate of economic growth. These factors include.

i.            Small share capital: co-operative is mostly found among the middle and lower classes of the society. They are relatively fond the poor sector of the society.

ii.          Lack of co-operative research: Co-operative enterprise lack new ideas and new methods of skills in scientific management . most of them  of not conduct research on the product they want to be producing before going into production and this cause low performance and poor future prospects.

iii.        Difficulty is obtaining loans from financial institutions: banks and credit organization always find it very difficult to grant loans to co-operatives business enterprises. Mainly this is due to lack of valuable collaterals which will help them back the request of a loan. Poor management and control from inexperienced managers and committee members most co-operative members mismanage and embezzle the limited and available capital for their own private    interest.                  


With the recent drive for higher efficiency by the co-operative societies and consequent effort being put in by Enugu state Government in strengthening the existing co-operative business enterprises.

The objectives can been seen in this perspective.

1.          To explore other possible ways in which cooperative business can be assisted  or supported apart from their internal funds.

2.          To identify the problems that always confront co-operative societies which prevent them from meeting their financial obligations.

3.          To find out the ways of improving the capital base of cooperative business and the efficiency of the cooperative  in meeting  their needs, such as raw material, capital and managerial skills  of the business establishment they operate.

4.          To determine the level of involvement of cooperative as a business out fit and the overall management of their own co-operatives enterprises.

5.          To educate and create awareness about the necessity of co-operative programme.



 Basically the scope of this work will entail basic understanding of the method of financing co-operative movement in Nigeria precisely in Enugu State.

The scope of this study is limited to apprising of selected co-operative societies in Igbo Etiti local government area of Enugu state and the best strategies  to improve on the financial problems of the societies.

This work points out the relevance in a clear understanding of the meaning need, essence and financing of co-operative society. This work will concentrate on blending the importance of financing co-operative society.



 Some set-backs tried to stop this work form seeing the light of the day. Finance is one of the problems that delayed the achievement of this project. Finance is very important because every aspect of this of fund should be made available. This is a great limited factor.

Another problem is the attitude of the respondent especially when it comes to being questioned orally, filling and returning the study questionnaire showed the general place of progress.

Lack of relevant literature was another problems because these was not much information about the project work. Time factor was another set-back because the researcher combined other academic work with the project work.       


The purpose of this research work is to examine the financing of co-operative societies and finding the strategies for improving capital base of co-operative societies in Enugu State. Such as selected co-operative societies  in Igbo Etiti Local Government Area.

This research work hops to educate the entire populace more about what the co-operative movement is all about what also intends to provide adequate information about  the technicalities and strategies involved in improving capital base of a cooperative business enterprises that can serve as a guide to those people who might wish to get involved in the types of business and those already in it.

To provide the government with the knowledge of the effectiveness of the co-operative financing effort and reveal areas that receive them.         











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Financing Of Co-operative In Engugu State