THE ROLE OF FEDERAL GOVERNMENT IN COOPERATIVE FINANCING IN IMO STATE ( A CASE STUDY OF SELECTED RURAL BASED COOPERATIVE SOCIETIES IN IKEDURU IMO STATE)

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ABSTRACT

This work investigated the Role of federal Government in cooperative Financing. The primary method of data collected from cooperative societies was used for their study. In the analysis table and simple percentage were used.This work recommended that the federal government should put in more effort or ensure that loans are given to farmers/cooperative in the country without much bureaucracy, and that government should create a specialized bank for the running of the cooperative or the strengthening for existing Nigeria agricultural cooperative and rural development bank ( NACRDB).This work reveals that the government shall recognize and respect the autonomy and operational independence of the co-operative sector/promote creation of national co-operative financing agency to provide financial backing.

 

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The choice of this topic; the role of federal government in co-operative financing cannot be over emphasized at the present economic situation of the country.

This is because of the fact that the issue of co-operative financing has reached all the nook and  crannies of Nigeria. The past and present regime emphasized on the best way of encouraging co-operative development. Though this does not mean that the best needs for co-operative development have been achieved.

According to IJERE (1970) rural and co-operative development have strategies and plans to help improve the living standards of the rural population. Development and economic growth are essential to determine the standard of living both the rural and urban dwellers. We cannot talk of development and growth in Nigeria economy without mentioning the development of our rural areas. Neglecting the development of the problem half. We should be wise enough to extract the experiences gained from countries like China, Malaysia, Israel, Tanzania, and some of the Asian tigers. Which have yielded a great deal of success in those countries. Our guest and enthusiasm towards the development of our rural co-operative base in panacea to the Nigerian economy. A well planned rural development is the answer to rural centers.

This will also create awareness and increase in the economic standard of the rural population and it eliminates such plagues as ignorance, poverty, poor standard of living and general backwardness associated with the underdevelopment.

This issue of infrastructural development which is pertinent to co-operative development will include our rural dwellers as long as the rural areas are not developed and one imagines what life would be like without electricity, pipe born water, good roads, net work facilities viewing centers and others.

According IJERE (2005) co-operative is a very wide one, it has two main branches that is owned and borrowed what belongs to you and what you set from another source. Owned capital is constituted with by share and reverse mainly. While external finding comes outside co-operative complex.

Co-operative movement the greatest impediment to a dynamic co-operative movement in Nigeria once we get it right, every other thing falls in place.

Finance they say is the act of raising funds and using of funds by individuals, co-operative firms and government organization for the day to day operation, running and management of business undertaking.

Finance is the life line organization be it profit oriented or welfare/ religious organization. Finance concerns itself with sourcing acquisition and utilization of fund in organization need to raise funds for it to effectively and efficiently deliver its goal.

Even though co-operative de-emphasizes the role of capital, it is now ever needed seriously for the society to grow.

In discussing co-operative finance we have to distinguish between two types of capital namely:

  1. Fixed Capital: this is funds used in acquiring moveable assets like land, buildings and machinery equipments and offices, fittings etc. it is capital “SUNK” or “LOCKED UP” and cannot consequently be recovered easily within a short period of time.
  2. Operating/ Working capital: this is the money needed to keep the co-operative going as a business concern.

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