Lagos, Nigeria – The Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) has called on startups and small businesses to institutionalize governance frameworks from inception, warning that operational informality jeopardizes long-term viability and investor confidence.
Why Governance Matters for SMEs
Critical Structures Needed:
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Decision-making protocols
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Internal audit systems
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Compliant financial records
Strategic Advantage: Formalization attracts investors and prevents regulatory pitfalls
Funmi Ekundayo (Outgoing ICSAN President):
“Governance isn’t bureaucracy—it’s the scaffold that turns hustles into institutions. A ‘table-and-chair’ startup today needs systems to become a conglomerate tomorrow.”
Nigeria’s Economic Outlook
Reform Potential: Backs Tinubu’s macroeconomic shifts but demands:
• Power/agriculture investments to diversify from oil
• Inflation control (currently 33.8%)
• MSME infrastructure support
Persistent Challenges:
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40% SME failure rate within 5 years (SMEDAN)
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Only 12% of Nigerian businesses maintain proper books (PwC)
ICSAN’s Advocacy Focus
Transparency Push: Trained 1,200 professionals on anti-graft compliance in 2024
Policy Influence: Advising NASME on governance frameworks for SMEs
Sector Resilience: Projects growth in fintech, trade, and telecoms despite headwinds
