Financial and nonfinancial analyses of Nigerian cocoa cooperatives : implications for governance and sustainable development : a thesis presented in partial fulfillment of the requirements for the degree of Master of Philosophy at Massey University, Manawatu, New Zealand

Abstract

The objectives of this study were to develop a framework that explains the financial and nonfinancial business performance of Nigerian cocoa cooperatives with implications for governance and sustainability, analyse how governance and sustainable development are reported by cocoa cooperatives and investigate how the relationship between governance and sustainable development can be explored. The study provided answers to the research questions and the three objectives were addressed by using analysis of financial data, interviews, secondary data and case studies. The four largest cocoa cooperatives in the Ondo State of Nigeria which are Akure CMU Ltd, Odode-Idanre CMU Ltd, Owo CMU Ltd and Alade-Idanre CMU Ltd were purposively selected. The study used financial and non-financial documents of the four secondary cooperatives. These are annual reports and books of accounts (2018-2022), progress reports, documents from meetings and public forums, and legal documents (bylaws). Twelve semi-structured interviews were also conducted with three directors from each of the four cooperatives. From the financial analysis, the trend analysis of these financial positions reveals variations among the cooperatives, Akure CMU Ltd generally has higher assets and equity compared to others, while Alade-Idanre CMU Ltd has lower assets and equity. The non-financial analysis revealed that Akure CMU Ltd, Owo CMU ltd, Alade Idanre CMU Ltd, and Odode CMU Ltd all have a statutory 10% of their earnings meant for educational purposes. This was in line with the Education for Sustainable Development (ESD) as a key element of the 2030 Agenda for Sustainable Development. On Skill Development and Training, there was enough secondary data from Akure CMU Ltd, Owo CMU Ltd, Alade Idanre CMU Ltd and Odode CMU Ltd to provide evidence of each cooperative commitment to upscaling the skills of its primary cooperatives and their members. As that they have a statutory responsibility for development funding. Their records show that the funding was mostly used for strategic development. The cooperatives also had Women's Engagement and Empowerment commitments, and implemented the Accelerating Action for the Elimination of Child Labour in Supply Chain in Africa (ACCEL- Africa) in Nigeria which is intended to improve awareness and behavioural change by the cooperatives to accelerate the eradication of child labour. The four cooperatives engaged in biodiversity protection and environmental programmes. The results of the interview were able to validate and corroborate most of the findings from most the financial and nonfinancial analysis of the cooperatives.