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. In my experience as a student of accounting and a tutor preparing others for professional exams, I have 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, I 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: 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.

I see this reality every day. As a tutor in a professional training centre in Ilorin, Kwara Sate where I help students prepare for accounting and auditing certifications, many of them already work in SMEs. They describe challenges ranging from poor cash oversight to confusion over staff duties. Once they learn how basic control practices can protect both money and time, they begin to view accounting not just as numbers, but as a 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, I believe our future depends on more SMEs embracing this truth. Sustainability starts with what happens inside the business, and the time to act is now.

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