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

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.