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, Kaduna 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 Kaduna 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
Kaduna 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 Kaduna 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
Kaduna state, the Kaduna 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 Kaduna 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 kaduna state.
2. To examine the activities of Kaduna 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 Kaduna 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 Kaduna state?
2. What has been the efforts of Kaduna state
cooperative federation towards the promotion of cooperatives in Kaduna?
3. What has been the efforts of the government
towards the development of cooperatives in Kaduna state?
1.5 Scope of the Study
The project work is an assessment of the
performance of cooperatives in Kaduna 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 Kaduna south local government
area of Kaduna 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 Kaduna
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 Kaduna 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.