Small and medium enterprises (SME) are rightly called the backbone of Nigeria’s economy. They provide jobs, promote innovation and anchor communities throughout the country. However, many of these companies struggle to stay afloat, not only for limited access to credit but also for weaknesses within their own systems. In my experience as an accounting student and tutor who prepares others for professional exams, I have seen how the difference between a prosperous SME and one that collapses is often reduced to something simple: internal controls.
Internal controls are the policies and processes that give order to a business. They safeguard resources, avoid fraud and maintain efficient operations. They may sound like technical jargon, but in reality they are daily practices; Clear labor roles, maintenance of precise records and effective communication in all personnel and management.
Earlier this year, he was co -author of an article reviewed by pairs at the Asian Journal of Advanced Research and reports that examined internal controls in Nigerian manufacturing companies. The results were surprising: companies with stronger controls, clear policies, ethical guidelines and open communication channels operated more efficiently and wasted less resources. Even modest improvements, such as better financial data communication or a regular review of responsibilities, produced measurable profits.
These findings are not limited to large corporations. In any case, they matter even more for small businesses. SMEs often work with tight budgets and limited personnel. A single span of supervision or a poorly tracked expense can erase months of effort. However, many owners still see internal controls as something that only great organizations need. In truth, small businesses have more to win from discipline, transparency and responsibility.
I see this reality every day. As a tutor in a professional training center in Ilorin, Kwara Sate, where she helped students prepare for accounting and audit certifications, many of them already work in SMEs. They describe challenges ranging from poor cash supervision to confusion about staff tariffs. Once they learn how basic control practices can protect both money and time, they begin to see accounting not only as numbers, but as a survival tool for their businesses.
The good news is that the strongest controls do not require millions of Naira. They require leadership and consistency. The owners can establish clear policies and make sure that each employee understands them. They can prioritize open communication so that information flows quickly and precisely. They can model transparency from above, knowing that employees follow the example they see. Even simple tools such as Excel or low -cost accounting software can make a dramatic difference.
What matters most is the culture behind the numbers. It is more likely that a company that values ​​responsibility to win the confidence of the lenders, investors and customers. It is also better prepared to resist clashes, either by the increase in costs, supply interruptions or economic recessions.
Nigeria SMEs will continue to be the beat of our economy, but beats is not enough. For these companies to maintain jobs and growth, they must build systems that last. Internal controls may not be glamorous, but they are the quiet force that keeps a business alive. As a young professional who prepares to graduate, I think our future depends on more SMEs adopting this truth. Sustainability begins with what happens within the business, and the time to act is now.
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