Assessment of the Financial Management Practices of Multipurpose Cooperative Societies in Enugu State

Sound financial management is fundamental to the survival and growth of cooperative societies, yet many multipurpose cooperatives in Nigeria operate without structured financial controls or professionally qualified personnel. This study assessed financial management practices among multipurpose cooperative societies in Enugu State, South East Nigeria. A descriptive survey covering 25 registered multipurpose cooperatives in Enugu metropolis was conducted. Data were collected through structured questionnaires administered to cooperative secretaries and treasurers, supplemented by document analysis of available annual financial reports. Financial management dimensions assessed included budgeting, record-keeping, internal audit, dividend payment, and member financial literacy. Findings showed that only 36 percent of the cooperatives prepared formal annual budgets, and 56 percent had never conducted an internal audit. Complete and accurate financial records were maintained in only 44 percent of societies. Dividend declaration was inconsistent in 68 percent of cooperatives, with many citing inadequate surplus as justification. Members' financial literacy was low in 61.2 percent of societies, contributing to minimal oversight of management accounts. Cooperatives affiliated with the Enugu State Cooperative Federation showed marginally better financial management scores than unaffiliated ones. The study concludes that weak financial management is a systemic problem in multipurpose cooperatives in Enugu State. Recommendations include mandatory annual financial audits, cooperative accountancy training programmes, and the adoption of digital accounting tools appropriate to cooperative scale and capacity.

Keywords: financial management, multipurpose cooperatives, Enugu State, cooperative governance, South East Nigeria