John Alechenu
The Financial Reporting Council of Nigeria (FRC) and the New Era for Sustainable Leadership and Accountability Initiative (NESLAI) have emphasized the need for improved financial awareness, accountability, and proper record-keeping among Small and Medium Enterprises (SMEs) in Kano State.

Speaking at the SME Financial Awareness Campaign in Kano, yesterday, FRC’s Dr. Rabiu Olowo, represented by Mr. Musa Kabiru, described SMEs as the backbone of Nigeria’s economy, driving innovation, employment, and wealth creation, but facing challenges like poor financial awareness and inadequate financial reporting systems.

He said, “Many SMEs face challenges that hinder growth, expansion, and competitiveness, particularly poor financial awareness and inadequate financial reporting systems.”

Olowo outlined benefits of proper financial reporting, including improved access to loans, better decision-making, and long-term sustainability, saying “Financial discipline is not a burden—it is a strategic advantage.”

According to him, financial awareness goes beyond basic bookkeeping and involves understanding the financial health of a business, making informed decisions, accessing funding opportunities, and ensuring sustainability.

Dr. Olowo explained that the Financial Reporting Council is mandated to develop and enforce accounting and financial reporting standards that promote transparency, accountability, and credibility across all sectors of the economy.

He added that through frameworks aligned with global best practices such as the International Financial Reporting Standards (IFRS), the Council is working to build trust in financial information, especially within the SME sector.

NESLAI’s Edwin Olorunfemi said many SMEs lack proper financial records, making it hard to access funding, and urged entrepreneurs to maintain proper records to position themselves for loans, grants, and investments.

He explained that many businesses thrive but remain invisible to investors and government support due to poor documentation, adding that the campaign aims to equip entrepreneurs with knowledge to maintain proper records, boost transparency, and access funding.

Olorunfemi said, “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.”

The event attracted government officials, regulators, financial institutions, business leaders, cooperative societies, and entrepreneurs committed to strengthening the SME sector and promoting inclusive economic growth in Nigeria.