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THE EFFECT OF THRIFT AND SOCIETY ON ENHANCING MEMBERS LIVING STANDARD

CHAPTER ONE

INTRODUCTION

Background to the Study

According to Momoh and Oso, cited in Akerele, Aihonsu, Ambali and Oshisanya (2014), cooperative thrift and loan society is a financial self-help cooperative which encourages members to save money together, and pooled resources are then used to provide low cost loans to members. They again stated that, Cooperative Thrift and Loan Society (CTLS) operates within a clearly defined area of location and a mutual link must exist between all members. This link is known as the common bond of the CTLS. The common bond may be based on all members living in the same locality or all members working for the same employer.

A study by Rhasi (2000) found that the in efficiency in credit management is among the factors that hinder the performance of thrift and loan cooperative societies in Nigeria. On the other hand, the high rate of defaults among borrowers remained serious impediment. Awoke (2004) reported that the high rate of default arising from poor management procedures, loan diversion and unwillingness to repay loans had threatened the sustainability of most thrift and credit cooperative societies in Kaduna state.

Olagunju and Adeyemo (2007) in buttressing this fact succinctly argued that the problem of default in loan repayment is one of the factors that militated against the performance of the thrift and credit cooperative societies, because it dampens the willingness of the cooperatives to increase the amount of loan and credit they disburse to their members. According to Abdulahi (2016), in most thrift and loan cooperative societies in Kaduna state, members are very conscious of money and assets and continually strive to maximize them in one way or the other. The increase in the rate of investment of members is made possible by way of 4 proportionate rise in the rate of savings mobilization of the cooperative society. Saving mobilization is, therefore, the key factor in assessing the performance of the cooperative thrift and loan society. The performance of any business organization is judged in relation to its stated objectives.

Subsidiary goals and their ranking vary, but this primary goal is upheld in practice. Therefore, cooperative performance can be judged in relation to the total present value of benefits it transfers to members, and their performance in savings mobilization depends to a large extent on the members. According to Abdulahi (2016), savings mobilization in cooperative thrift and loan societies has to do with the ability of the members of the cooperative to keep resources aside for 

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