Credit Mobilization And The Development Of Cooperative Businesses In Imo State, Nigeria
Abstract
This study examined the influence of credit mobilization on the development of cooperative businesses in Imo State, Nigeria. Three objectives guided the study: to assess the influence of credit mobilization on financial sustainability, examine the effect of member savings mobilization on capital base expansion, and investigate the influence of loan repayment ratio on investment capacity. The study was anchored on Resource Mobilization Theory and adopted a descriptive survey design. The study drew on information from 15 purposively selected agricultural cooperative societies across the three senatorial zones of Imo State. A sample of 377 respondents was determined, and 368 completed questionnaires were returned, representing a response rate of 97.6%. Data were collected with a structured questionnaire reported to have a Cronbach’s alpha of 0.89. Descriptive statistics and simple ordinary least squares regression were used for analysis. The reported ANOVA results indicated statistically significant relationships between credit mobilization and financial sustainability (F = 6,134.021, p < .001), member savings mobilization and capital base expansion (F = 6,828.277, p < .001), and loan repayment ratio and investment capacity (F = 34,306.981, p < .001). The findings suggest that access to mobilized credit, regular member savings, and timely loan repayment are important financial processes associated with cooperative development. The study recommends transparent credit procedures, consistent savings programmes, and stronger loan appraisal and recovery systems. The statistical tables in the source document contain inconsistencies in some reported model-summary values; these should be checked against the original SPSS output before journal submission.
Keywords
References
- Adegoke, T. D., Olajide, D. S., & Ogiamien, O. F. (2026). Impact of cooperative management on members' participation and financial sustainability in Ekiti State, Nigeria. [Journal name, volume, issue and pages to be confirmed]. https://eksujournal.eksu.edu.ng/ojs/index.php/ejmr/article/view/1054
- Adeyonu, A. G. (2016). Determinants of loan repayment among small holder cooperative farmers in Remo Division, Ogun State, Nigeria. Journal of Agricultural Science, 8(1), 92–99.
- Agbasi, O. E., Aminu, L. B., & Akonu, S. C. (2024). Impact of savings mobilization and loan distribution on members of investment and credit cooperative societies in Kaduna State. Journal of the Management Sciences, 61(6), 288–301. https://journals.unizik.edu.ng/jfms/article/view/4277
- Agu-Aguiyi, F. N., Anigbogu, T. U., Godson-Ibeji, C., & Umebali, E. E. (2018). An assessment of the performance of cooperative thrift and loan societies in Kaduna North Local Government Area of Kaduna State. GOUni Journal of Management and Social Sciences, 5(2).
- Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. Psychometrika, 16(3), 297–334.
- Jenkins, J. C. (1983). Resource mobilization theory and the study of social movements. Annual Review of Sociology, 9, 527–553.
- Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607–610.
- McCarthy, J. D., & Zald, M. N. (1977). Resource mobilization and social movements: A partial theory. American Journal of Sociology, 82(6), 1212–1241.
- Olatubosun, A. (2022). Resource mobilization and financial performance of Islamic cooperative societies in the South Western Nigeria. International Journal of 'Umranic Studies. [Volume and pages to be confirmed]
- Onafowokan, O. O. (2013). Impact of cooperative societies savings scheme in rural finance: Some evidence from Nigeria. Economic Review: Journal of Economics and Business, 11(1), 77–88.
- Otache, I., Echukwu, I. J., Umar, K., Yunusa, A., & Audu, S. (2023). Internal factors affecting the performance of employee-based savings and credit cooperatives: Evidence from Nigeria. Journal of Enterprising Communities: People and Places in the Global Economy, 17(6), 1154–1170.
- Oyeleye, S. S., & Umebali, E. E. (2023). Effect of management committee on the performance of cooperatives in tertiary institutions in Oyo State, Nigeria. GOUni Journal of Faculty of Management and Social Sciences, 11(1), 265–280.