The Financial Reporting Council of Nigeria (FRC), Lagos Chamber of Commerce and Industry (LCCI) and the Integrity Organisation, yesterday in Lagos, unveiled a strategic partnership aimed at institutionalising governance certification for micro, small and medium enterprises (MSMEs).
The event, held at Ikeja, underscored corporate governance as a non-negotiable catalyst for MSME sustainability and economic transformation.
The seminar, themed ‘Corporate Governance Certification as a Key Strategy for MSME Success in Nigeria’, brought together stakeholders from public and private sectors who emphasised that governance was no longer a luxury for small businesses, but a competitive advantage essential for resilience, investor trust and scalability.
Addressing the gathering, Executive Secretary and Chief Executive Officer of the FRC, Dr Rabiu Olowo, described the initiative as one of the most laudable moves by the Council, stressing that Nigeria does not need more but stronger MSMEs. He noted that while access to finance is often cited as the leading challenge for MSMEs, the real impediment lies in the absence of sound governance structures.
Olowo said, “Governance is foundational. It is the invisible infrastructure that drives continuity, inspires investor confidence and unlocks value beyond the present generation. With over 40 million MSMEs operating in Nigeria, the goal is not to increase the numbers but to build strength and sustainability among them.”
He stressed that the new MSME Corporate Governance Guidelines (SME CGG 2024) issued by the Council provided a practical and adaptable framework designed to meet the realities of small businesses.
Voluntary certification under this scheme, he said, should become a developmental badge of honour, distinguishing credible MSMEs in a highly competitive market.
With President Bola Tinubu’s administration prioritising MSMEs as drivers of national development, Olowo noted, governance, certification and regulatory support must converge to enable the sector to deliver on its promise.
“There is no way we can dream of a $1 trillion economy without looking after the MSMEs,” the FRC boss said.
President of the LCCI, Gabriel Idahosa, pledged the Chamber’s full support, committing its sectoral groups, dominated by MSMEs, to begin the certification process. He emphasised that governance is no longer “nice to have” but a “strategic imperative” and announced that the LCCI would mobilise its membership towards formal adoption of the SME CGG framework.
“We cannot continue to have MSMEs die off after three or five years. Poor governance is at the heart of the structural weaknesses facing small businesses, be it succession planning, investor confidence, or access to finance.
With this partnership, we are not just talking policy, we are giving SMEs a practical tool to survive and grow,” Idahosa said.
He added that certification will become a vital asset for SMEs, just as important as physical infrastructure like generators or computers. According to him, with the LCCI receiving foreign investors weekly, governance certification provides a shortcut in matching local businesses with credible international partners.
Chief Executive Officer of Integrity Organisation, Soji Apampa, explained that the era of operating on the strength of personal connections alone is over. He revealed that procurement systems, both public and private, are now prioritising traceable ethics and independently verifiable compliance.
He said, “The Financial Reporting Council is offering a voluntary integrity certification scheme for MSMEs. This is not just about ticking boxes; it’s about being able to prove your credibility.
“Only vendors that can meet governance criteria will access key opportunities, whether through government procurement platforms, large corporate supply chains, or foreign partnerships.”
Apampa pointed out that banks and development finance institutions are increasingly reluctant to lend without governance assurances, leading to a financing gap that continues to choke the MSME sector. He noted that the certification scheme, once adopted, would become the passport to unlocking capital, growth partnerships, and policy engagement.
“This is how we build a new economy of trust. Governance is the new currency. The question is no longer whether SMEs can afford to get certified, but whether they can afford not to,” he added.
The Coordinator Director of the Directorate of Corporate Governance at the FRC, Titus Osawe reaffirmed the Council’s commitment to stakeholder-driven reform. He said the development of the SME CGG was a deliberate move to ensure that MSMEs, despite their size, can adopt appropriate governance models tailored to their capacity and realities.
“The Nigerian Code of Corporate Governance 2018 was never designed to be a one-size-fits-all. We recognised that applying the same governance expectations for big corporations to small businesses would be a mismatch. This is why we created a fit-for-purpose guideline that SMEs can work with,” Osawe said.
