CHAPTER ONE

INTRODUCTION

1.1   Background of the Study

This research work focuses on the effects of credit administration and control on the development of cooperative society. Credit administration and control functions as a good instrument that brings about rapid development in the cooperative  sector. It can be regarded as the essence of   financial  instruction in an  economy, therefore the formulation  and implementation  of sound and  solid credit polices  and  control are among the  most crucial responsibilities of the management of an organization.

Among the most essential functions of credit cooperative is to provide loans to members and ensure the repayment of the loans given to them,  it is  therefore important to develop policies that will ensure the security of loans extended to members.

Due to  lack of credit administration and control, credit facilities made available is spread among members of the cooperative societies and considered more  of gift than loans to be paid within a specific period of time and therefore cooperatives find themselves cripple economically.

The implementation of credit administration and control is a necessary condition of the society so as to  achieve its objectives, to serve the  members  in an efficient manner and  more importantly ensure safety of funds for  continuity  and development  of the society.

According to Iyowu (1985) an articulate credit management policy  not only  seeks  to  balance profit and liquidity. It expects to   determine whom credit must be  granted to how much to be  granted, for how long and to ensure successful recovery. The achievement of an efficient credit administration and control  entails  an  elements of a subjective management.

This research work will look at the role of credit administration and control, the disbursement of loans and its recovery credit  administration and control and how it can be utilized for the development of the cooperative societies.