Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Internal Control System and Performance of Selected Deposit Money Banks in Makurdi Metropolis, Benue State, Nigeria

I. K. Kwenev, M. E. Umogbai, S. I. Ucherwuhe

Abstract

The study investigates the effect of Internal control System on performance of selected Banks in Makurdi Metropolis, Benue State. The study was anchored on survey research design. The researcher used both primary and secondary sources from a sample of one hundred and twenty-nine (129) respondents obtained by the use of a structured questionnaire. The data collected were analyzed using descriptive statistics such as frequency, simple percentage and the relationship between the variables of the model was tested using multiple linear regression analysis. The hypotheses of the study were analyzed using the probability value of the regression estimates. The result of the regression analysis indicates that a negative effect exits between access control and Customer Patronage of selected Banks in Makurdi Metropolis, Benue State and the effect is not statistically significant (p>0.05) Risk Assessment was positively related to Customer Patronage of selected Banks in Makurdi Metropolis, Benue State and the relationship is statistically significant (p<0.05) Access control has a negative effect on Market Share of selected Banks in Makurdi Metropolis, Benue State and the relationship is not statistically significant (p>0.05). Risk Assessment was positively related to Market Share of selected Banks in Makurdi Metropolis, Benue State and the relationship is statistically significant (p<0.05). It was concluded that internal controls are integral to the way in which organizations function and thus help in building the confidence of the customers to engage in patronage of the banks' products and services. It was among others that risk management should be given serious attention as it has been found to bring about an increase in the market share of the selected banks in the study area.

References

Abiodun, E. A. (2020). Internal control procedures and firm’s performance. International Journal of Scientific & Technology Research, 9(2), 6407–6415. Retrieved from http://www.ijstr.org Adetiloye, A. K., Olokoyo O. F. and Taiwo N. J., (2016). Fraud Prevention and Internal Control in the Nigerian Banking System. International Journal of Economics and Financial Issues. 6(3). Akeem, L. B. (2015). Impact of Auditing in Controlling Fraud and Other Financial Irregularities. International Journal of Empirical Finance, 4(3), 147-164. Bett, J. C, and Memba FS. (2017). Effects of Internal Control on the Financial Performance of Processing Firms in Kenya: A Case of Menengai Company. International Journal of Recent Research in Commerce Economics and Management; 4(1): 105–115 Bouri, S., Guellil, Z., & Belfilali, F. (2025). The role of internal control in improving financial performance: an exploratory study at CPA-TLEMCEN Bank, Algeria. South Florida Journal of Development, 6(4), e5129. https://doi.org/10.46932/sfjdv6n4-014 Dimitrijevic, D., Milovanovic, V., Stancic, V. (2015). Role of a Company’s Internal Control system in fraud prevention. Financial Internet Quarterly, 11( 3), pp. 34 – 44. Fang, Z. & Huang, L. (2016). Market share analysis with brand effect. 7016-7023. 10.1109/CDC.2016.7799350. Flamholtz, E. (2019). Organizational Control Systems as a Managerial Tool. California Management Review. 22 issue: 2, page(s): 50-59. Online @ https://doi.org/10.2307/41165320 Fracchia, J. (2021). A historical-materialist cartography of human corporeal organisation (in outline): On the corporeal constitution of patterns of human experience, behaviour, and realities. In Bodies and artefacts: Historical materialism as corporeal semiotics. Brill, 244:292–501. Gouda, G.K. and Tiwari, B. (2022). Talent agility, innovation adoption, and sustainable business performance: empirical evidence from the Indian automobile industry, International Journal of Productivity and Performance Management, 71(6):2582- 2604. Gutterman, A. (2023). Organizations. Available at SSRN: http://dx.doi.org/10.2139/ssrn.4531823 Ibrahim, S., Diibuzie, G., & Abubakari, M (2017). The impact of internal control systems on financial performance: the case of health institutions in upper west region of Ghana. International Journal of Academic Research in Business and Social Sciences, 7(4): 684-696. Knies E, Boselie P, Gould-Williams J, Vandenabeele W (2017). Strategic human resource management and public sector performance: context matters. Taylor & Francis, Routledge. Lampson, B. (2015). Protection, in 5th Princeton Symposium on Information Sciences and Systems, pp. 437–443. Lee, M. T. and Raschke, R. L. (2016). Understanding employee motivation and organizational performance: Arguments for a set-theoretic approach. Journal of Innovation & Knowledge, 1(3):162-169. Nwiepe, N. M., & Ateke, B. W. (2016). Customer service management and patronage of GSM services in Rivers State. Rivers State University Journal of Marketing Development, 1(1), 98-106. Nwosu, N. L., Onyemaobi, N., & Odimmega, C. G. (2025). Utilization of automated internal control system for effective fraud prevention in small and medium scale enterprises in Anambra state. Unizik Journal of Educational Research, Science And Vocational Studies, 1(1). Okonkwo I. V. and Ezegbu N. L. (2016). Internal Control Techniques and Fraud Mitigation in Nigerian Banks. International journal of Economics and Finance. 7(5), 1-17. Sutherland, E. (1939). White Collar Crime. (University of Michigan). J. B. Lippincoh. Sutherland, E. (1947). Differential Association Theory. (University of Michigan). J. B. Lippincoh.

More Articles from IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH

Effect of Monetary Policy on Profitability of Deposit Money Banks in Nigeria

Author: Stephanie Nguhemen Gbande, Mike T. Soomiyol, Timothy Tyona, Gaius Msendoo Asombo

Cognitive Diversity and Performance of Deposit Money Banks in Nigeria

Author: 1Nwangwu, Okwudiri Iheanyi, 2 Pepple, Grace Jamie PhD

Banking Innovations and Industrial Sector Performance in Nigeria: Evidence from ARDL Model

Author: Peter Ngbede Ajam, Abiodun Edward Adelegan, Benson Emmanuel

Environmental Sustainability and Entrepreneurial Performance in Nigeria: A Case Study of Enugu State

Author: i, Azolike Nkiru Nkechi, ii, Okwor Emmanuel Ejimnkonye, iii, Eneaniofu Daniel Mmaduakonam