INTERNAL CONTROL AND FRAUD MANAGEMENT: A STUDY OF UNITED BANK FOR AFRICA, LAGOS, NIGERIA
Banks in developing economies face persistent challenges in maintaining financial integrity and controlling fraud due to weak governance structures, increasing digital transaction risks, and evolving financial crime patterns. This study examined the effect of internal control systems on fraud management in United Bank for Africa (UBA), Lagos, Nigeria, with specific focus on control environment, risk assessment, and monitoring activities. A quantitative survey research design was adopted. The population comprised governance-related employees in UBA Lagos operations, estimated at 380 staff drawn from internal audit, compliance, risk management, finance control, and senior management units. A sample size of 195 respondents was determined using Yamane’s sampling technique. Data were collected through structured questionnaires and analyzed using descriptive statistics, multiple regression analysis, and ANOVA. Descriptive results showed generally high levels of internal control implementation, with monitoring activities recording the highest mean score (22.15), followed by fraud management (21.93), control environment (21.42), and risk assessment (20.78). Regression analysis revealed that all internal control dimensions significantly influence fraud management, with monitoring activities exerting the strongest effect (β = 0.342, p = 0.001), followed by control environment (β = 0.276, p = 0.012), and risk assessment (β = 0.195, p = 0.045). The ANOVA result confirmed the model’s statistical significance (F = 38.76, p < 0.001), while the model explained 68.7% of the variation in fraud management (R² = 0.687, Adjusted R² = 0.682). The study concludes that internal control systems significantly enhance fraud management in UBA, with monitoring activities being the most influential component, followed by the control environment and risk assessment. Overall, the findings highlight the importance of integrated internal control frameworks that strengthen oversight, reinforce ethical governance, and improve risk evaluation to enhance fraud resilience in Nigeria’s banking sector.
Keywords: Internal Control, Fraud Management, Control Environment, Risk Assessment, Monitoring Activities