Ajah et al
Greener Journal of Agricultural Sciences Vol. 4 (8), pp. 354-361, September 2014.
Manuscript Number: 080914323
Analysis of Cooperative Societies Effectiveness in Credit Delivery to Agricultural Enterprises in Calabar Municipality of Cross River State, Nigeria
Ajah Eucharia Agom*, Itam Kingsley Okoi and
Asuquo Innocent Asuquo
Department of Agricultural Economics and Extension University Of Calabar, Calabar, Nigeria.
*Corresponding Author’s Email: ajahagom @yahoo .com
The study analyzed the effectiveness of cooperative societies in credit delivery to agricultural enterprises in Calabar Municipality of Cross River State. The specific objectives were to analyze the institutional characteristics of the cooperatives, analyzed number of loan applied and approved over a period of time, the effectiveness and constraints of cooperatives. The study used a multi-stage random sampling technique to select 30 agricultural cooperative societies in the Municipality. Primary data for the study were collected in 2013, using well-structured questionnaire. The data collected were analyzed using descriptive statistics and Queue model. The result revealed that the mean age of the cooperative societies was 5.7 years and 70% of them were more than 5 years in operation. The cooperative societies had an average approval rate of 94.5% with an average traffic intensity of 1.06 and an idle time of -0.14. This showed that cooperative societies were not very efficient in the Queue management. The major constraints militating against cooperative society’s effectiveness were low loan repayment and embezzlement of funds (poor management of funds). Any policy that will improve proper management of funds and higher loan repayment will improve the managerial ability of the cooperative management and increase the approval rate to 100 percent and the idle time to zero.
Keywords: Cooperative Societies, Credit, Idle time, traffic intensity, Agriculture.
Ajah EA, EO Eyo and SO Abang, (2013). Repayment Performance among Cassava and Yam Farmers under Nigerian Agricultural Bank Smallholder Loan Scheme in Cross River State Nigeria.British Journal of Economics, Management & Trade 3(4): 453-467, 2013
Alufohai, GO and Okorosobo TJ, (2013).An Assessment of Beneficiaries’ Satisfaction on the Mangement of Loan Contract Components by Farmers Cooperative Societies in Edo State , Nigeria . International Journal of Agricultural Management and Development
Alufohai GO, (2006). Sustainability of farm credit delivery by cooperatives and NGO’s in Edo and Delta state, Nigeria, Educational Research and Reviews 1(8): 262 – 266.
Alufohai GO and Ahmadu J, (2005). Queue Management by Nigerian Agricultural cooperatives and rural Development Bank (NACRDB) in farm credit delivery: The case of Benin branch, Edo State, Nigerian.
Aryeetey, T, (1997). “Rural Finance in Africans”: Institutional development and Access for the poor. In: M. Bruno, B. Pleskovic (Eds) programe of the annual word bank competence on Development Economic. Washington Dc.
Aresvick, O, (1955). Comments on 'Economic nature of the cooperative association.' Journal of Farm Economics 37:140-4.
Awotide, DO, JOY Aihonsu, AH Adekoya, (2011). Cooperative society’s effectiveness in credit delivery for agricultural enterprises in North Local Government in Ogun State Nigeria.Asian journal of Business and Management
Committee for the Promotion and Advancement of Cooperatives,(COPAC)(2000).The Contribution of cooperatives to Employment Promotion. Paper Presented at the International Day of Cooperatives,Geneva.www.cpacgva.org retrievedSept3, 2008.
Helmberger, P, and Hoos, S, (1962). Cooperative Enterprise and Organization Theory. The American Economic Review, 44(2), pp. 275-290. Economics, 83(5), pp. 1266-1272.
HeImberger, PG, (1964). Cooperative enterprise as a structural dimension of farm markets. Journalof Farm Economics 46:603-17.
International Cooperative Alliance ICA, (1995). Report of the Centennial Congress of the ICA, Geneva, Switzerland,October.
Ijere, MO, (1981). The Prospect of employment creation through Cooperatives inNigeria. Nigeria Journal of Rural Development and Cooperative studies, 2:77-78.
Izekor, OB and Alufohai, GO, (2010). Assessment of Cooperative society’s effectiveness in agricultural credit delivery in IkpobaOKha local Government Area, Edo state, Nigeria. African Journal of general Agriculture 6 (3): 139 -143.
JiJi, JS, (1999).Constraints in credit Administration (A case study of selected cooperative, in Calabar Municipality of Cross River State.
Kareem, RO, Arigbabu, YD, Akintaro, JA and Badmus, MA, (2012). The Impact of Coperative Society on Capital Formation in Ijebu-Ode, Ogun State Nigeria. Global Journal of Science Frontier Research Agriculture and Veterinary Sciences12(11)
Lewis A, (1955). The theory of Economic Growth. London: Allen & Unwin, 118-189.
Ndifon, HM, and Agube, EI, Odok, GN, (2012). Sustainability of Agricultural cooperative Societies in Nigeria: The Case Study of South-South Zone, Nigeria
Nwachukwu IN, Alamba CS and Oko-Isu, A, (2010). Determinants of Institutional Credit Repayment Performance among Farmers in Afikpo North LGA of Ebonyi State, Nigeria. AAB BIOFLUX, 2(3), 211-226.
Nweze,N.J.(2003).Coperative Promotion in Rural Communities: The Project Approach. Nigeria Journal of Cooperative Studies,2(2):76-78
Obasi, F. C. and Agu, S. E. (2000). Economic of Small Scale Rice Farmers under Different Production System in South Eastern Nigeria. Journal of Agriculture, Business and Rural Development 1:2.
Ojo, M. O.(1985).Agriculture Credit Policies in Nigeria: Problems and Prospects. African Research Review, 5(2),87-103
Oluwatayo, A.B. Sekumade O., &Adesoji, S.A. (2008). Resource Use Efficiency of Maize farmers in Rural Nigeria: Evidence from Ekiti State, Nigeria. World Journal of Agricultural Science, 4(1):91-99.
Olayemi, J. K. and Onyenwaku, C. E. (1999).Quantitative Methods for Business decisions, Bosude Printer Ltd, Ibadan, pp. 51 – 81.
Omotosho, M. Y. (2002). Operation research Project, Yosode Publishers, Ibadan pp. 63 – 77.
Onyenucheya, F. and Ukoha, O.O.(2007). Loan Repayment and Credit worthiness of Farmers under the Nigerian Agricultural Cooperative and Rural Development Bank NACRDB. Agricultural Journal, 2(2), 265-270
Qureshi, S., Nahi, T. and Faaruauee R. (1996). Rural Finance For Growth and Poverty Alleviation. World Bank Policy Research Working paper. No. 1593.
Phillips, R. (1953). Economic Nature of the Co-operative Association.Journal of Farm Economics, 35, pp. 74-87.
Saitone, T.L., and Sexton, R.J., (2009). Optimal Cooperative Pooling in a Quality-Differentiated Market.The American Journal of Agricultural Economics, 91(5), pp. 1224-1232.
Sexton, R. J. (1984)."Perspectives on the Development of the Economic Theory of Cooperatives."Can. J. Agr.Econ.32 :423-36. "The Formation
Sexton, R.J.(1995). A Perspective on Helmberger and Hoos’ Theory of Cooperatives.Journal of Cooperatives.10: 92-99
Torgerson,R.E., Bruce,J. R andThomas W. G (1998). “Evolution of Cooperative Thought,Theory and Purpose” Journal of Cooperatives13:1-20
Webster, A.(1992). Statistics for Business Economics and Management Richard Irwin Press New York.
Zeller, M. & Sharma, M. (1998).Rural financial services for poverty alleviation. In A. Perpinstrup and R. Pandyalorch (Eds.), The role of public policy in the unfinished agenda. New York: IFPRI Publication, 30-42.
Call for Articles/Books
Call for Scholarly Articles
Authors from around the world are invited to send scholary articles that suits the scope of this journal. The journal is currently open to submissions and will process and publish articles daily, immediately they are ready.
The journal is centered on quality and goes about its processes in a very timely fashion. Seasoned editors/reviewers will be consulted to review each article(s), profer quality evaluations and polish the articles with expertise before publication.
Use our quick submit button to submit or simply send your article(s) as an e-mail attachment to email@example.com or firstname.lastname@example.org.
Call for Books
You are also invited to submit your books for online or print publication. We publish books related to all academic subject areas. Submit as an e-mail attachment to email@example.com.