The Financial Reporting Council of Nigeria (FRC), in collaboration with the New Era for Sustainable Leadership and Accountability Initiative (NESLAI), has called for enhanced financial awareness, accountability, and proper record-keeping among Small and Medium Enterprises (SMEs) in Kano State. This advocacy was the focus of the SME Financial Awareness Campaign, held in Kaon on Thursday, April 16, 2026, to address critical challenges faced by SMEs in Nigeria.
Speaking at the event, the Executive Secretary/CEO of the FRC, Dr. Rabiu Olowo, represented by the Director of Accounting Standards (Private Sector), Mr. Musa Jemaku Kabiru, highlighted the pivotal role of SMEs in Nigeria’s economy. He described SMEs as the backbone of innovation, employment, and wealth creation, but noted that many are hindered by poor financial awareness and inadequate financial reporting systems.
“Many SMEs face challenges that hinder growth, expansion, and competitiveness, particularly poor financial awareness and inadequate financial reporting systems,” he said. Dr. Olowo emphasized that financial discipline is not a burden but a strategic advantage, enabling businesses to access loans, make informed decisions, and achieve long-term sustainability.
Dr. Olowo explained that financial awareness goes beyond basic bookkeeping. It involves understanding the financial health of a business, accessing funding opportunities, and ensuring sustainability. He reiterated the FRC’s mandate to develop and enforce accounting and financial reporting standards that promote transparency, accountability, and credibility across all sectors of the economy.
Through frameworks aligned with global best practices, such as the International Financial Reporting Standards (IFRS), the FRC is working to build trust in financial information, particularly within the SME sector. This trust, he noted, is critical for attracting investors and fostering economic growth.
The Managing Director of NESLAI, Edwin Olorunfemi, also stressed the importance of proper financial record-keeping for SMEs. He explained that many SMEs struggle to access funding due to poor documentation, which makes them invisible to investors and government support programs.
“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,” Olorunfemi said.
He urged entrepreneurs to maintain proper records to position themselves for loans, grants, and investments, adding that transparency and accountability are essential for business sustainability.
The event featured two insightful presentations:
- Oladele Oladejo, Head of Strategic Projects Department at the FRC, spoke on the Importance and Benefits of Financial Reporting Compliance for SMEs in Nigeria.
- Dr. Najafi Auwalu Ibrahim, from the Dangote Business School, Bayero University, Kano, delivered a presentation on Financial Record Keeping for SMEs and Cooperative Societies: Why Proper Financial Records are Critical for Business Sustainability.
Both presentations underscored the need for SMEs to adopt proper financial practices to enhance their growth and competitiveness.
The campaign attracted a diverse audience, including government officials, regulators, financial institutions, business leaders, cooperative societies, and entrepreneurs, all committed to strengthening the SME sector. The initiative aligns with the FRC’s broader mission to promote inclusive economic growth and ensure that SMEs contribute meaningfully to Nigeria’s economy.
The FRC and NESLAI’s partnership reflects a shared commitment to addressing structural weaknesses in the SME sector, fostering transparency, and building a resilient economy. By equipping SMEs with the tools and knowledge to improve financial management, the campaign aims to unlock their full potential and drive sustainable development.
The SME Financial Awareness Campaign in Kano is a testament to the FRC and NESLAI’s dedication to empowering small businesses. By promoting financial discipline, proper record-keeping, and compliance with global standards, the initiative seeks to transform SMEs into engines of growth, innovation, and economic stability in Nigeria.
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