Organizational Factors of Agricultural Cooperative Societies and their Influence on Credit Repayment of Members in Nasarawa State, Nigeria

Abstract

This study investigated the influence of organizational characteristics of agricultural cooperatives on credit repayment among its members in Nasarawa State, Nigeria. Given the critical role these cooperatives play in rural economies, the research aimed to identify specific organizational factors influencing loan repayment in the cooperatives. The study employed a structured questionnaire administered to 214 members across 24 cooperatives, selected through a two-stage sampling process. Data analyses include descriptive statistics and ANOVA to explore the relationships between organizational characteristics and loan repayment performance. The findings revealed that crisis and conflict management abilities significantly influenced credit repayment, with an F-ratio of 2.215 and a p-value of 0.027, indicating strong statistical significance. Similarly, training, education, and extension services showed a positive effect on repayment behaviours, evidenced by an F-ratio of 1.742 and a p-value of 0.044. Specifically, cooperatives with strong crisis management reported a 22% higher repayment rate, while those offering extensive training programs saw a 19% improvement in repayment behaviours. The study concluded that enhancing conflict resolution capabilities and educational offerings within cooperatives can lead to a marked improvement in loan repayment rates. It is recommended that crisis and conflict management skills of members, are improved through training and education.