Internal Control System and Employee Productivity of Selected Manufacturing Firms in Nigeria

An effective and efficient internal control system creates an organization’s confidence in its ability to perform or undertake a particular task and prevents errors and losses through monitoring and enhancing organization. This study examines into the effect of internal control system on employee productivity of manufacturing firms in Nigeria. The descriptive survey design was employed in selecting ten manufacturing companies in Lagos Nigeria, and using the purposive sampling technique in the selection of hundred respondent within the three levels of management in the organization. The study employed the multiple regression analysis which revealed that control environment, risk assessment, monitoring activities has positive significant effect on employee productivity while control activities has negative significant effect on employee productivity. It is therefore recommended that manufacturing firms should invest in strengthening their risk assessment processes and ensure the control environment is supportive, ethical, and performance-driven. Monitoring activities should be enhanced to provide regular feedback and ensure the effectiveness of internal controls. However, control activities should be designed to facilitate, rather than restrict, employees' ability to perform their duties efficiently.