The study assessed the effectiveness of cooperative societies in Yewa North
Local Government in Ogun State, southwest Nigeria using approval rate,
arrival rate, service rate traffic intensity and idle time. The study used a multi
stage random sampling to select 10 cooperative societies in the Local
Government Area. The list of all registered cooperative societies was obtained
from the Ministry of Commerce and Industry. From the list, 10 cooperatives
societies were randomly selected. The primary data for the study were
collected in November 2011 using a well structured questionnaire. The data
collected were analyzed using descriptive statistics and Queue Model. The
overall results show that the cooperative societies had approval rate of 88.4%
with an average traffic intensity of 1.05 and an idle time of -0.05. This shows
that the cooperative societies were not very efficient in the queue management
because the idle time was not zero and were not very effective in credit
delivery because the approval rate is less than 100%. Based on the evidence
presented in this study, we conclude that the cooperative societies were not
very effective and efficiency in credit delivery. Any policy geared towards
improving the capital base of the societies and increase the managerial ability
of the cooperative management staff will go a long way to increase the
approval rate and the idle time.