INTERNAL FINANCIAL CONTROLS AND THE PERFORMANCE OF THRIFT ANDCREDIT OF COOPERATIVE SOCIETIES IN NIGERIA

Abstract

This study examined the influence of internal financial controls on the performance of thrift and
credit cooperative societies in Nigeria. A descriptive survey design was employed to gather
quantitative data from a sample of 500 respondents across five states, representing Nigeria’s
major geopolitical and linguistic zones. A multistage sampling technique ensured representation
of both management officers and ordinary members, and data were collected through a validated
questionnaire titled Internal Financial Control and Cooperative Performance Questionnaire
(IFCCPQ). Out of the 500 questionnaires distributed, 476 were returned, achieving a 95.2%
response rate. Reliability was confirmed with a Cronbach’s alpha of 0.87. Descriptive statistics
summarized respondents’ profiles, while multiple regression analysis tested hypotheses at a 0.05
significance level using SPSS version 26. Findings revealed that internal control activities
significantly influence financial performance (R = 0.812, R² = 0.659, p < 0.05), while internal
audits and monitoring strongly enhance accountability (R = 0.784, R² = 0.615, p < 0.05).
Similarly, compliance with internal control policies significantly improves operational efficiency
(R = 0.801, R² = 0.642, p < 0.05). These results indicate that effective internal controls are
indispensable for transparency, fraud prevention, and organisational sustainability. The study
concludes that robust internal control frameworks are essential for the growth and viability of
cooperative societies. It recommends that management committees strengthen control
mechanisms, regulatory agencies enforce compliance, and members actively monitor governance
to safeguard resources and promote trust within the cooperative sector.