Influence of Credit Administration on Financial Control Among Co-Operative Thrift and Credit Societies in Ekiti State, Nigeria

Abstract

This study investigated the influence of credit administration on financial control among Cooperative Thrift and Credit Society (CTCS) in Ekiti State, Nigeria. Specifically, the objectives are; to determine the extent to which creditworthiness influence the allocation of credit from cooperative thrift and credit societies in Ekiti State and to explore the extent to which credit selection risk influence usage of credit from cooperative thrift and credit societies in Ekiti State. Data used for the study were obtained using a structured questionnaire administered to 383 respondents who were members of the cooperative thrift and credit society in Ekiti north senatorial district, Ekiti State. A stratified sampling technique was employed in selecting the participating members from each of the local governments and data was analysed. Primary and Secondary data are used. To achieve the stated objectives, t-test and linear regression analyses were adopted to measure the effect of the variations of the independent variable (creditworthiness and credit selection) on the dependent variable (financial control of credit thrift cooperative society). Findings reveal that the t-calculated value of 2.3345 and the p-value of 0.020 implies that creditworthiness has a significant effect on the allocation of credit among Cooperative Thrift and Credit Societies in Ekiti, also with a t-value of 4.0469 and an associated p-value of 0.000. There is a significant influence of credit selection on the usage of funds from CTCS in Ekiti State. Thus, the study concluded that credit administration has a significant effect on financial control among Cooperative Thrift and Credit Society in Ekiti State, Nigeria. It is recommended that CTCS need to disburse credit or loans to members based on their needs and usage of the funds, especially for viable and worthwhile projects.