FUNDS MOBILIZATION AND UTILIZATION AMONG COOPERATIVE SOCIETIES IN YEWA DIVISION OF OGUN STATE, NIGERIA
Keywords:
Funds mobilization, Fund utilization, Cooperative societies, Cooperative investmentAbstract
Resource mobilization is an essential aspect of the operations of Cooperative societies useful for members’ economic and social emancipation. Funds mobilization and its effects on the profitability level of Cooperative business activities in Yewa Division of Ogun State were therefore investigated, using purposive sampling technique in selecting seventeen (17) towns, nine (9) Unions, and twenty-three (23) societies in the three (3) LGAs. Sixty-six (66) Cooperative societies were selected, from which data were sourced and analyzed. Most (65.2%) Cooperative investment activities were in trade and rental services (housing, utensils, plastic chairs and canopies); assemblage and sales of produce commodities (cocoa beans and cashew nuts); industrial production of household consumable (22.7%); and agricultural activities (12.1%). Mean capital worth of investment enterprise was N564,394. Bulk of the societies investment funds were derived from members’ share capital (N1,585,101.63); members’ ordinary savings (N794,183.86) and net surpluses on cooperative investments (N615,762.21); members’ loan interest (N370,138.12); members development levy (N30,242.21); entrance fees (N2,651.52); sales of stationery (N1,049.55); fines from erring members (N7690.46); sundry donations (N6820.80); and N2,541.97 from sundry sources. Multiple sources of funds were available to cooperative societies for investment activities; with an average gross margin value of N2,069,294.04/annum and rate of return to investment (RRI) of 55.24%; confirming profitable cooperative investment enterprises in the study area. The semi-log functional form of the regression model that shows the factors that positively influence net return (surplus) from cooperative investment explained 57% of the total variation in the annual value of cooperative investment earnings. From the result, the worth of cooperative capital investment (10%); labour employment (1%); and amount invested in share capital (1%) would significantly influence annual earnings from cooperative investments. It was therefore recommended that Cooperative societies should further scale up their share investment and loan services to members in order to make more capital available for investment purposes.
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