THE EFFECT OF CREDIT ADMINISTRATION AND CONTROL ON THE DEVELOPMENT OF COOPERATIVE SOCIETIES IN NIGERIA

THE EFFECT OF CREDIT ADMINISTRATION AND CONTROL ON THE DEVELOPMENT OF COOPERATIVE SOCIETIES IN NIGERIA

Background of the Study
This research work focuses on the effects of credit administration and control on the development of cooperative society. Credit administration and control functions as a good instrument that brings about rapid development in the cooperative  sector. It can be regarded as the essence of  financial  instruction in an economy, therefore the formulation  and implementation of sound and  solid credit polices  and  control are among the  most crucial responsibilities of the management of an organization.

Among the most essential functions of credit cooperative is to provide loans to members and ensure the repayment of the loans given to them,  it is  therefore important to develop policies that will ensure the security of loans extended to members.

Due to  lack of credit administration and control, credit facilities made available is spread among members of the cooperative societies and considered more  of gift than loans to be paid within a specific period of time and therefore cooperatives find themselves cripple economically.

The implementation of credit administration and control is a necessary condition of the society so as to  achieve its objectives, to serve the  members  in an efficient manner and  more importantly ensure safety of funds for  continuity and development  of the society.

According to Iyowu (1985) an articulate credit management policy  not only  seeks  to  balance profit and liquidity. It expects to determine whom credit must be  granted to how much to be granted, for how long and to ensure successful recovery. The achievement of an efficient credit administration and control  entails  an  elements of a subjective management.

This research work will look at the role of credit administration and control, the disbursement of loans and its recovery credit  administration and control and how it can be utilized for the development of the cooperative societies.

1.2 Statement of The Problem
The primary aim in a cooperative society is to improve the economic and social position  of the  members  by extending credit facilities  to them. It can either be short term or long term loans. It is important that credit usage be productive which will enable the borrower to earn enough to repay the principal and the interest and also realize a surplus from the undertaking.

Cooperative societies are not making significant impact in the  growth and development despite some level of credit administration and control, problems are faced when  there are  no  checks and balances and therefore posses danger to it’s continued existence and as such will not have achieved the objectives for which it was initially established.

Due to this shortcoming and  more,  like lack  of experts to handle the finance of the society, mismanagement of funds by officials, poor  record keeping which makes  most members not to get  their  contributions as at when  due,  which has led to loss of confidence, withdrawal of the members  and consequently loss of contribution to the  societies.

THE EFFECT OF CREDIT ADMINISTRATION AND CONTROL ON THE DEVELOPMENT OF COOPERATIVE SOCIETIES IN NIGERIA