Building Resilient SMEs Through Stronger Internal Controls

Small and medium-sized enterprises (SMEs) are rightly called the backbone of Nigeria’s economy. They provide jobs, drive innovation, and anchor communities across the country. Yet too many of these businesses struggle to stay afloat, not only because of limited access to credit but also because of weaknesses inside their own systems. Ridwan Shehu is a student of accounting and a tutor preparing others for professional exams and in his experience, he has seen how the difference between a thriving SME and one that collapses often comes down to something simple: internal controls.

Internal controls are the policies and processes that give order to a business. They safeguard resources, prevent fraud, and keep operations efficient. They may sound like technical jargon, but in reality, they are everyday practices, clear job roles, accurate record-keeping, and effective communication across staff and management.

Earlier this year, Ridwan Shehu co-authored a peer-reviewed article in the Asian Journal of Advanced Research and Reports that examined internal controls in Nigerian manufacturing firms. The results were striking as companies with stronger controls, clear policies, ethical guidelines, and open channels of communication operated more efficiently and wasted fewer resources. Even modest improvements, like better communication of financial data or regular review of responsibilities, produced measurable gains.

These findings are not limited to big corporations. If anything, they matter even more for small businesses. SMEs often work with tight budgets and limited staff. A single lapse in oversight or a poorly tracked expense can erase months of effort. Yet many owners still view internal controls as something only large organizations need. In truth, small firms have the most to gain from discipline, transparency, and accountability.

He sees this reality every day. As a tutor in a professional training centre in Ilorin, Kwara State, where he helps students prepare for accounting and auditing certifications, he often encounters participants who already work in SMEs. Beyond teaching, he also volunteers his time to provide direct advisory support to small businesses, offering practical guidance on issues such as cash oversight and staff responsibilities. Through his efforts, entrepreneurs begin to see how even basic internal control practices can safeguard both money and time, transforming accounting from a set of abstract numbers into a vital survival tool for their businesses.

The good news is that stronger controls do not require millions of naira. They require leadership and consistency. Owners can set clear policies and make sure every employee understands them. They can prioritize open communication so information flows quickly and accurately. They can model transparency from the top, knowing that employees follow the example they see. Even simple tools like Excel or low-cost accounting software can make a dramatic difference.

What matters most is the culture behind the numbers. A business that values accountability is more likely to win the trust of lenders, investors, and customers. It is also better prepared to withstand shocks, whether from rising costs, supply disruptions, or economic downturns.

Nigeria’s SMEs will remain the heartbeat of our economy, but heartbeat alone is not enough. For these enterprises to sustain jobs and growth, they must build systems that last. Internal controls may not be glamorous, but they are the quiet strength that keeps a business alive. As a young professional preparing to graduate, Ridwan Shehu believes our future depends on more SMEs embracing this truth. Sustainability starts with what happens inside the business, and the time to act is now.