The Crucial Role of Financial Reporting for SMEs in Nigeria

Publication Information

Journal Title: International Journal Of Legal Developments And Allied Issues
Author(s): Olaide Olufolayemi Olatunji
Published On: 10/06/2024
Volume: 10
Issue: 3
First Page: 92
Last Page: 103
ISSN: 2454-1273
Publisher: The Law Brigade Publisher

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Olaide Olufolayemi Olatunji, The Crucial Role of Financial Reporting for SMEs in Nigeria, Volume 10 Issue 3, International Journal Of Legal Developments And Allied Issues, 92-103, Published on 10/06/2024, Available at


Financial reporting is critical for accountability and transparency in business organizations, including Small and Medium Enterprises (SMEs). Financial reporting plays a vital role in enhancing the sustainability, financial performance, and credibility of SMEs in Nigeria. Uniform financial reporting standards such as GAAP and IFRS have a significant impact on global business practices. SMEs contribute to economic growth and employment across different regions, particularly in Nigeria, playing a pivotal role in the economy. Despite the benefits, Nigerian SMEs face significant challenges in adopting effective financial reporting practices due to limited resources, lack of awareness, and insufficient accounting expertise. The research recommends strategies to improve financial reporting among SMEs, including education, policy support, and the adoption of digital tools, to enhance their access to finance and strategic decision-making capabilities.

Keywords: Financial reporting, Small and Medium Enterprises, Economic Growth, Business Sustainability, and International Financial Reporting Standards.

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