The Financial Reporting Council of Nigeria (FRC), in partnership with Integrity Organization, United Nations Global Compact Network Nigeria (UNGCNN) and the support of the MacArthur Foundation has launched the Small and Medium Enterprises Corporate Governance Guidelines (SME-CGG).
The new, non-mandatory guidelines will not only help formalize SMEs, but also help them develop structures and corporate governance that can sustain their businesses long past their founder’s demise.
The Executive Secretary of FRC, Dr. Rabiu Olowo, at the issuing and unveiling of the Guidelines, in Abuja, said that SMEs contribute over 50 per cent to the Gross Domestic Product (GDP), employing millions of citizen, were instrumental to innovation, fostering entrepreneurship and growth.
Dr. Olowo further said that unlocking the potential of SMEs required a good corporate governance practices, involving a structure through which objectives of a company were set.
“SMEs are incredibly sector to improve growth, reduce poverty, and promote social progress.
“We believe that Governance to SMES is very key. There is a myth that the problem of SMEs is finance, which is not entirely true.
“A well ran SME is well governed with the principles of succession planning, risk management well put in place which will promote the ability to live into the future,” he said.
Key components of the SME-CGG, Olowo said, included a board structure and responsibilities, risk management, corporate governance policies and procedures, financial oversight, and stakeholder engagement.
Other components he mentioned were, an ethical conduct and compliance, succession planning and family-owned enterprises.
The executive Secretary added that the Guidelines were not mandatory, but would be a key distinguishing factor to access capital, living in short, Medium or long term.
“Looking at all of this, even without its mandatory feature, I believe it is a must have for every SMEs.
“By adopting these guidelines, SMEs will be better positioned to attract investment, build trust with stakeholders, and enhance their competitive edge.
“The launch of the Nigeria SME-CGG is an opportunity to set a new standard for how our SMEs are run, ensuring they are well-equipped to compete on a global stage,” Olowo said.
He called on relevant stakeholders to embrace the guidelines and remain committed to its implementation.
The Co-Thematic Lead, Anti-Corruption and Governance, UN Global Compact Network Nigeria, Ms. Ayotola Jagun, said that partners working jn synergy could create an ecosystem were responsible business practices and sustainability are not ignored.
“The future of Nigerian economy rests on the shoulders of SMEs, by empowering them to be committed and ensure sustainability, we can create a future that is prosperous,equitable and environmentally conscious.
“I urge SMEs and relevant bodies to adopt the SME-CGG to achieve the Sustainable Development Goals,” Jagun said.
Mr. Soji Apampa, Chief Executive Officer of Integrity Organisation, the Guidelines created an opportunity for SMEs to access incentives for their businesses.
Mr Osita Ede, Head of Finance Service Cluster, Lagos Chamber of Commerce and Industry (LCCI), said that apart from the capital in a business, investors were also interested in a good governance structure of that business.
“Investors are interested in companies raised on a good track record, equity,a good team, a clear vision and commitment to responsible practices.
“Good governance enables businesses to equally help SMEs to demonstrate these qualities,” he said.
Ede, also Chief Product Officer of Fidelity Bank, pledged LCCI and the bank’s commitment towards creating more awareness on the SME-CGG.
He mentioned that Fidelity Bank was putting measures in place to launch Fidelity SME hub, a one-stop shop for SME solutions, where they would incorporate the SME-CGG in their capacity building programmes.
Mr Oryiman Alu, from SMEDAN, said that the problems of SMEs included access to funding, insecurity, among others.
Alu said there was need to engage stakeholders at the state levels to be part their national programme aimed improving businesses of SMEs and addressing their challenges.
Other key stakeholders, industry experts and government officials attended the event and pledged their commitment to driving sustainable growth and responsible business practices in Nigeria.
The Financial Reporting Council of Nigeria (FRC), in partnership with Integrity Organization, United Nations Global Compact Network Nigeria (UNGCNN) and the support of the MacArthur Foundation has launched the Small and Medium Enterprises Corporate Governance Guidelines (SME-CGG).
The new, non-mandatory guidelines will not only help formalize SMEs, but also help them develop structures and corporate governance that can sustain their businesses long past their founder’s demise.
The Executive Secretary of FRC, Dr. Rabiu Olowo, at the issuing and unveiling of the Guidelines, in Abuja said that SMEs contribute over 50 per cent to the Gross Domestic Product (GDP), employing millions of citizen, were instrumental to innovation, fostering entrepreneurship and growth.
Dr. Olowo further said that unlocking the potential of SMEs required a good corporate governance practices, involving a structure through which objectives of a company were set.
“SMEs are incredibly sector to improve growth, reduce poverty, and promote social progress.
“We believe that Governance to SMES is very key. There is a myth that the problem of SMEs is finance, which is not entirely true.
“A well ran SME is well governed with the principles of succession planning, risk management well put in place which will promote the ability to live into the future,” he said.
Key components of the SME-CGG, Olowo said, included a board structure and responsibilities, risk management, corporate governance policies and procedures, financial oversight, and stakeholder engagement.
Other components he mentioned were, an ethical conduct and compliance, succession planning and family-owned enterprises.
The executive Secretary added that the Guidelines were not mandatory, but would be a key distinguishing factor to access capital, living in short, Medium or long term.
“Looking at all of this, even without its mandatory feature, I believe it is a must have for every SMEs.
“By adopting these guidelines, SMEs will be better positioned to attract investment, build trust with stakeholders, and enhance their competitive edge.
“The launch of the Nigeria SME-CGG is an opportunity to set a new standard for how our SMEs are run, ensuring they are well-equipped to compete on a global stage,” Olowo said.
He called on relevant stakeholders to embrace the guidelines and remain committed to its implementation.
The Co-Thematic Lead, Anti-Corruption and Governance, UN Global Compact Network Nigeria, Ms. Ayotola Jagun, said that partners working in synergy could create an ecosystem were responsible business practices and sustainability are not ignored.
“The future of Nigerian economy rests on the shoulders of SMEs, by empowering them to be committed and ensure sustainability, we can create a future that is prosperous,equitable and environmentally conscious.
“I urge SMEs and relevant bodies to adopt the SME-CGG to achieve the Sustainable Development Goals,” Jagun said.
Mr. Soji Apampa, Chief Executive Officer of Integrity Organisation, the Guidelines created an opportunity for SMEs to access incentives for their businesses.
Mr Osita Ede, Head of Finance Service Cluster, Lagos Chamber of Commerce and Industry (LCCI), said that apart from the capital in a business, investors were also interested in a good governance structure of that business.
“Investors are interested in companies raised on a good track record, equity,a good team, a clear vision and commitment to responsible practices.
“Good governance enables businesses to equally help SMEs to demonstrate these qualities,” he said.
Ede, also Chief Product Officer of Fidelity Bank, pledged LCCI and the bank’s commitment towards creating more awareness on the SME-CGG.
He mentioned that Fidelity Bank was putting measures in place to launch Fidelity SME hub, a one-stop shop for SME solutions, where they would incorporate the SME-CGG in their capacity building programmes.
Mr Oryiman Alu, from SMEDAN, said that the problems of SMEs included access to funding, insecurity, among others.
Alu said there was need to engage stakeholders at the state levels to be part their national programme aimed improving businesses of SMEs and addressing their challenges.
Other key stakeholders, industry experts and government officials attended the event and pledged their commitment to driving sustainable growth and responsible business practices in Nigeria.
Olusola Akintonde
