The Financial Reporting Council of Nigeria (FRC), in collaboration with Integrity Organisation and other partners, has formed an advisory committee to guide the rollout of the Small and Medium Enterprise (SME) governance certification scheme, a move stakeholders said would expand market opportunities, strengthen access to finance, and boost Nigeria’s credibility in global trade.
Speaking at a Stakeholders Meeting on Business Integrity Certification for Enterprises In Nigeria, held yesterday in Lagos, the Coordinating Director, Directorate of Corporate Governance and Directorate of Inspection and Monitoring, FRC, Titus Osawe, who represented the Executive Secretary/Chief Executive of the council, Dr Rabiu Olowo, said the initiative aligns with the council’s broader mandate to ensure good governance across entities operating in Nigeria.
According to Osawe, SMEs, which make up at least 80 per cent of enterprises in the country, remain a critical segment that cannot be overlooked. The Business Integrity Certification (BIC) Project, developed in partnership with the FRC, provides a credible, independently verified certification system that validates the governance, compliance and integrity of enterprises.
He stressed that while compliance is voluntary, development partners, chambers of commerce, and business membership organisations will play key roles in encouraging adoption and ensuring that businesses see value in aligning with the standards.
Chief Executive of Integrity Organisation, Soji Apampa, in his presentation, underscored that the certification scheme would serve as a risk management tool for both local and international investors.
He explained that stricter anti-bribery and anti-fraud laws in the United Kingdom and other jurisdictions have made investors more cautious in dealing with Nigerian firms, but governance certification would provide an assurance mechanism to identify credible partners.
Apampa revealed that the federal government is also considering new policies that prioritise SMEs and women-owned enterprises in procurement opportunities below N50 million, with compliance certification expected to become an important requirement for participation. He added that discussions were ongoing between the Bureau for Public Procurement (BPP) and the FRC to integrate compliance checks into the procurement process, making certification a strategic advantage for businesses.
Highlighting further opportunities, Apampa said large corporations with global financing ties and complex supply chains would also rely on governance certification to mitigate risks from thousands of SME suppliers. He added that chambers of commerce and trade delegations would increasingly demand certification as proof of ethical and professional standards.
Speakers further warned that persistent governance and integrity gaps continue to raise the cost of capital, discourage foreign investment, and limit SMEs’ access to finance and trade. They pointed to non-performing loans weighing heavily on banks and development finance institutions, while agencies such as the BPP struggle to identify credible SMEs to deliver on the government’s Nigeria First Policy. Without intervention, Nigeria risks losing out on opportunities under the African Continental Free Trade Area (AfCFTA) and the Enhanced Trade and Investment Partnership (ETIP).
The Political Economy Advisor/Lead at Integrity Organisation, Dr. Bala Magaji, stressed that access to finance remained the most pressing challenge for SMEs, noting that governance certification would give lenders, investors, and regulators greater confidence to support compliant businesses.
Magaji emphasised that the scheme is not an academic exercise, but a process-driven approach aimed at improving business sustainability in a country where up to 80 per cent of SMEs fail within their first three years.
The Advisory Committee was tasked with guiding the rollout of the governance certification scheme. Apampa explained that the committee would work on key issues such as communication, pricing, and ensuring the inclusion of smaller enterprises.
“What is being certified in compliance with the SME governance guidelines, assessed independently and transparently,” he said, noting that the committee would help refine implementation to ensure the standards are practical and widely embraced.
