Strategic factors affecting the performance and sustainability of cooperative credit and thrift schemes in the local government areas in Enugu State, Nigeria

Abstract

Thispaper examined factors constraining the effective performance and sustainability of cooperative credit and thriftschemes in the local government areas (LGAs) in Enugu State. The study used a survey of 269 households drawn from 17 LGAs in Enugu state. The current researcher tested the study’s hypotheses by conducting a descriptive statistic that specified the ascending mean differences of the highlighted constraints. The findings revealed that the factor that poses the most constraints to the effective performance and sustainability of credit and thrift schemes in the LGAs in Enugu State is the failure of some loaners to pay back, followed by insufficient funding and ignorance the scheme. It is essential to addthat the strategic measures to accelerate the growth of cooperative credit and thrift schemes in the State include a well-designed strategy that increases the growth of thrift and loan, members receiving education, and orientation on as well as enacting legislation to protect the scheme. This paper's finding reinforces the Government’sattempt to overhaul its current monetary policy toafford cooperativesbetter opportunityto obtain the necessary funding. Finally, the paper proposed that efforts should bemade to ensure a well-designed strategy that increases the growth of thrift and loan,create more awareness on the relevance of cooperative credit and thrift schemes, and create a more exclusive account for the scheme with reasonable interest. Besides, this paper proposed the appropriate enacting of legislation to protect the schemewithin the local government areas in Enugu State, Nigeria.