Council, NGO advocate stronger SME financial management in Kano 

The Financial Reporting Council of Nigeria (FRC), in collaboration with the New Era for Sustainable Leadership and Accountability Initiative (NESLAI), has emphasized the need for improved financial awareness, accountability, and proper record-keeping among Small and Medium Enterprises (SMEs) as a key driver of national economic growth. The message was delivered during the SME Financial Awareness […]

The Financial Reporting Council of Nigeria (FRC), in collaboration with the New Era for Sustainable Leadership and Accountability Initiative (NESLAI), has emphasized the need for improved financial awareness, accountability, and proper record-keeping among Small and Medium Enterprises (SMEs) as a key driver of national economic growth.

The message was delivered during the SME Financial Awareness Campaign: Benefits for Trades and the National Economy, held in Kano State on Thursday.

Speaking at the event, the Executive Secretary of the Financial Reporting Council of Nigeria, Dr. Rabiu Olowo, represented by Mr. Musa Kabiru, described SMEs as the backbone of Nigeria’s economy, noting that they remain critical to innovation, employment generation, and wealth creation.

He said despite their enormous contributions, many SMEs face challenges that hinder growth, expansion, and competitiveness, particularly poor financial awareness and inadequate financial reporting systems.

According to him, financial awareness goes beyond basic bookkeeping and involves understanding the financial health of a business, making informed decisions, accessing funding opportunities, and ensuring sustainability.

Dr. Olowo explained that the Financial Reporting Council is mandated to develop and enforce accounting and financial reporting standards that promote transparency, accountability, and credibility across all sectors of the economy.

He added that through frameworks aligned with global best practices such as the International Financial Reporting Standards (IFRS), the Council is working to build trust in financial information, especially within the SME sector.

The FRC Executive Secretary outlined several benefits of proper financial reporting for SMEs, including improved access to loans and investments, better decision-making, stronger internal controls, effective cash flow management, and long-term business sustainability.

He further stated that when SMEs operate transparently and efficiently, they contribute more meaningfully to tax revenues, job creation, and national economic stability.

“Financial discipline is not a burden—it is a strategic advantage,” he said, while urging entrepreneurs to embrace financial literacy and proper reporting as tools for transforming their enterprises.

Dr. Olowo also assured participants that the Council would continue to support SMEs through simplified reporting frameworks, capacity-building programmes, and sustained stakeholder engagement.

In his remarks, the Executive Director of the New Era for Sustainable Leadership and Accountability Initiative (NESLAI) Comrade Edwin Olorunfemi, said one of the greatest challenges confronting SMEs and cooperative societies in Nigeria is not merely lack of funding, but the absence of proper financial records.

He noted that many businesses perform well in practice but remain invisible to investors, banks, and government intervention programmes because they lack credible documentation.

According to him, the campaign was designed to change that narrative by equipping entrepreneurs and cooperative groups with practical knowledge to maintain proper financial records, improve transparency, and position themselves for access to loans, grants, and investment opportunities.

“Our goal is simple: to strengthen the foundation of small businesses in Kano State so they can grow sustainably, create jobs, and contribute meaningfully to the economy. When SMEs get it right, the economy gets stronger,” he said.

The event attracted government officials, regulators, financial institutions, business leaders, cooperative societies, and entrepreneurs committed to strengthening the SME sector and promoting inclusive economic growth in Nigeria.