ABSTRACT

The main objective of this Study was to carry out a work on the roles of informal organization in savings mobilization and Socio-Economic Welfare in Isuikwuato L.G.A. of Abia State. The specific objectives were among others to identify the objectives and functions; and sources of funds for the organizations. Data used in this Study were collected through the use of structured questionnaires and personal interview. Each of the three rural informal organizations namely Age grade, Youth organization and Social Club was randomly selected from four autonomous communities out of sixteen communities in Isuikwuato, However, Two-esusu associations were selected from each autonomous community. This gave a total of Twenty organizational groups. Two sets of questionnaires were distributed, one for the members of the organizations and the other for the rural organizations. Two numbers from each organization were selected using simply random sampling technique. On the whole, a total of fourty respondent were interviewed. Secondary information were gotten from research reports and journals. Data collected were analysed using descriptive statistics such as means, frequency distributions and percentages. The results showed that majority of the organizations (55% and 35%) had financial help to members and provision of social amenities as their major objectives 40% embarked on development projects while 20% were involved in construction/repairs of Schools, hospitals and maintenance of law order respectively as their Primary function. One hundred of the fund were met by members, while 40% and 30% were from interest on loans and through appeal funds. 35% of the organization sustained their operations by contributing fixed amount on monthly basis and through annual dues respectively while esusu associations sustained their operations by contributing fixed or variable amount on weekly or monthly basis. Members received an average of N1937.22 as rite during sickness, marriage. Age grades, Youth organization and Social Club generated a mean amount of N90,888.33 through annual dues and revenues from rent of canopies, chairs while esusu organization mobilized N52,190 in 1990. Social Club never made loan advances while age grade and Youth organization disbursed a mean amount of N1000. Esusu organization between N450 — N20,000. The lending terms and conditions varied among organization ranging from interest rate, collateral and amount disbursed. From the findings, it was concluded that the organizations especially Social Clubs and Age grade should be encouraged to guarantee credit facilities to their members. And in general, the organization should be used as an intermediary in loan disbursement and recovery from formal lending institutions. Finally, rural dwellers should be encouraged to form more of such self-help organizations since they save the Social-economic needs of their members.