Effect of Credit Administration and Control on the Development of Cooperative Society (a Case Study of State Multi-Purpose Co-Operative Society (smcs Udus))

The study examined the effect of credit administration and control on the development of credit and thrift cooperatives societies in State Multipurpose Co-operative Society UDUS Sokoto State. Hence, this study sought to specifically determine the credit recovery process credit an cooperative can use to recover credit on due date from members and identify the control measures to be used to ensure effective utilization of credit administered to members. A simple random sampling technique was employed to select 4 cooperative societies in the study area and a sample size was determined using Taro Yamane’s Formula. Data obtained was analyzed using descriptive statistics and percentages as well as z-test statistic. The results of the study revealed that credit recovery process used by credit cooperative societies to recover credit on due dates and the control measures used by credit cooperatives ensure productive utilization of credit administered with a z-value of 0.785. The major challenge faced by cooperatives is poor financial analysis and monitoring of credit (39.53%), and it was recommended that cooperatives should enforce strict discipline through its credit committee on the monitoring of cooperative credit and make proper analysis as to the ability of members to repay credit and using it as a medium to know if credit should be issued or not. The paper recommends that Cooperative should adhere to strict business guidelines in running their lending activities and avoid favoritism and the idea of cooperatives as personal enterprise. Finally, they should adhere to the professional advice of the Area Officer in the local government.
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