In my years of working across finance functions in Nigeria and the UK, I’ve seen one thing consistently separate thriving businesses from struggling ones: a proactive approach to internal control. Not just checklists or audit prep, but systems that protect the business, sharpen its focus, and earn the trust of stakeholders. In far too many cases, businesses in Africa still see internal controls as a compliance burden, something to survive, rather than something to build on. That mindset needs to change.
Internal controls are more than policies and approvals. They are the invisible architecture behind a business’s resilience. They determine how confident investors feel, how accurate financial reports are, how easily fraud can be detected or prevented, and how much control the leadership really has over the business.
The cost of neglect
In Nigeria and across the continent, governance failures continue to erode value in both public and private sector institutions. When internal controls are weak, fraud becomes easier, reporting becomes unreliable, and strategic decisions are made on shaky ground. I’ve worked in environments where cost verification exercises exposed years of misallocations that no one had noticed because no one had been checking. Not because the finance team wasn’t competent, but because the system didn’t demand it.
One of the biggest misconceptions I’ve encountered is that internal controls are only for large corporations or listed entities. But in reality, small and medium-sized businesses need them even more. They operate in leaner environments, often with fewer checks and balances, and are disproportionately affected by cash flow issues, delayed reconciliations, and manual processes. One small fraud or one misstep can derail years of growth.
From policing to planning
If we shift our view of internal controls from policing staff to protecting strategy, we unlock real value. For example, proper segregation of duties isn’t just about preventing theft. It’s about ensuring that no one person becomes a single point of failure. Automated payment approvals aren’t just about accountability. They also improve efficiency, reduce manual errors, and ensure real-time visibility of cash outflows.
In my role as a cost assurance officer on major infrastructure projects, I’ve seen how systematised controls build confidence. When you can trace a transaction from the procurement request to the final payment with supporting documentation at each stage, you don’t just avoid disallowed costs. You also gain clarity. That clarity translates to smarter capital allocation, better project management, and stronger relationships with partners and stakeholders.
Aligning controls with strategy
Controls should evolve with the business but too often, companies implement controls based on templates or outdated processes that no longer reflect their structure or strategic focus. For instance, if a company is trying to attract capital, it should prioritise financial reporting controls, investor-ready dashboards, and scenario modelling. If the goal is expansion, then controls around procurement, vendor selection, and working capital management become critical.
It’s not about having more controls, but about having the right ones in the right places. Controls should mirror the business model, the risk profile, and the reporting obligations. I’ve helped businesses reframe their control environment around these principles, and the transformation is visible: improved audit outcomes, clearer management decisions, and faster access to financing.
The trust dividend
One thing I’ve learned from managing reporting functions and participating in financial audits is that trust is a currency. Auditors trust what they can verify. Investors trust what they can trace. Boards trust what they can explain. Internal controls are the foundation of that trust.
I recall one engagement where a company lost a major investment opportunity because they couldn’t produce consistent financial statements over a three-year period. It wasn’t that the business wasn’t profitable. It was simply unstructured. There were no standardised reconciliation processes, no audit trails, no fixed asset register. The numbers changed every time the investor asked a question. That’s all it took to walk away.
On the other hand, companies with clean books, automated systems, and clearly defined financial controls get funding faster, scale quicker, and survive crises better. It’s not about perfection, but about predictability.
A practical way forward
So what can businesses do to strengthen internal controls and treat compliance as strategy?
1. Start with a risk-based review: Identify the top areas where something could go wrong (cash handling, procurement, reporting accuracy) and prioritise those for control design.
2. Digitise processes where possible: Even Excel-based trackers are better than paper trails. But wherever possible, move toward cloud-based systems with built-in controls.
3. Train beyond finance: Everyone from admin to procurement to HR should understand the basics of control. It fosters accountability and reduces resistance.
4. Involve leadership: Internal controls work best when they have top-level sponsorship. Management must see them not as a cost, but as an investment in business intelligence.
5. Regularly test your systems: Don’t wait for the audit. Conduct quarterly self-checks or internal audits to assess control effectiveness and fix leaks early.
6. Document and communicate: Controls that aren’t understood won’t be followed. Clear policies, flowcharts, and walkthroughs help demystify processes.
Final thoughts
The future of African enterprise depends on financial integrity. Whether you’re running a family-owned company or leading a pan-African conglomerate, the principles are the same: structure builds resilience. Controls unlock capital. Transparency attracts trust.
We cannot afford to treat compliance as a checklist or an afterthought. It must be embedded into the DNA of our businesses. Because in the long run, the businesses that grow, last, and lead are those that treat internal controls not as obligations, but as strategy.
