UNCOVERING THE FINANCIAL PERFORMANCE OF FARMERS' COOPERATIVE SOCIETIES IN SOUTHEAST, NIGERIA

Cooperative societies have increasingly been acknowledged as a perilous institution for driving socio-economic development, especially in emerging nations like Nigeria. Cooperatives being owned and managed democratically by their members, aim to solve economic inequalities, promote independence, and foster community support. Cooperative societies, known for their potential to address these issues, are faced with numerous challenges including; inadequate funding in sustaining development in their business activities. This study examined financial performance of farmers’ cooperative societies in Southwest Nigeria. The study analyzed responses from two hundred and forty respondents selected through a multi-stage sampling procedure. Frequency, mean, t-test, binary logit regression model, and exploratory (principal component) factor analysis were used for the analysis. The results revealed that majority did not access credit from both formal and informal credit institutions. The determinants of credit access showed variables that were significant and positively related to formal credit access to include; savings, years of existence, repayment period, presence of account officer and financial literacy while distance to access point, government interference, collateral, transaction cost, hidden charges and shareholdings were significant and negatively related to farmers‘ cooperative societies access to formal credit. The factor analysis model showed the major factors constraining farmers’ cooperatives performances in southeast, Nigeria to include; sociological, financial/economic and organizational/institutional factors. The findings of this study suggest that government and policy makers pay more attention to finding relevant credit policy for these disadvantaged farmers and also, formal financial institutions should be made available in the rural areas where most of these cooperatives are found.