Financial Management Practices and Profitability of Fish Farming Cooperatives in Benue State

This study analysed financial management practices and their relationship with the profitability of fish farming cooperatives in Benue State, North Central Nigeria. Cooperatives are increasingly promoted as vehicles for improving smallholder aquaculture productivity and market access, yet weak financial management undermines their sustainability. A total of 22 registered fish farming cooperatives were surveyed, with detailed financial records reviewed and interviews conducted with cooperative managers and members. Financial management variables assessed included budgeting practices, cash flow management, bookkeeping standards, loan management, and profit distribution mechanisms. Profitability was measured using gross margin analysis and return on investment per production cycle. Results revealed that only 36 percent of cooperatives maintained structured financial records, and 64 percent had never engaged a professional accountant or financial advisor. Cooperatives with formal budgeting and cost accounting practices recorded average return on investment rates of 32 percent per cycle, compared to 14 percent for those relying on informal financial management. Loan default rates were highest in cooperatives that used borrowed funds without formal repayment schedules. Profit distribution conflicts were reported in 45 percent of cooperatives, in some cases leading to dissolution. Access to government credit schemes was limited to cooperatives with verifiable financial records. The study recommends mandatory financial literacy training for cooperative executives, the introduction of standardised cooperative accounting templates, and the linkage of government financial support to verifiable financial management compliance in Benue State fisheries cooperatives. Keywords: financial management, fish farming cooperatives, profitability, aquaculture, Benue State