Small and Medium-sized Enterprises (SMEs) in Nigeria account for approximately 96% of all businesses and contribute about 84% of private sector employment. As key drivers of economic growth, these small businesses play a vital role in Nigeria’s efforts to diversify and expand its economy.
In order to address the particular requirements of family-run businesses, the Financial Reporting Council of Nigeria (FRC) has released official governance guidelines. These SME Corporate Governance Guidelines 2024 provide a framework of fundamental ideas and industry best practices specifically designed for Nigerian small and medium-sized businesses (SMEs), and the guidelines aim to strengthen the governance structure of SMEs, enhancing their transparency, accountability, and sustainability.
The guidelines consist of six core sections covering key areas such as;
- Corporate Governance Policies,
- Board of Directors
- Internal Controls
- Stakeholder relations
- Family-run entities and environmental
- Social and Governance (ESG) considerations.
By implementing these practices, SMEs can boost their bankability, longevity, and access to capital while aligning with international corporate governance standards.
