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Introduction
Despite their significant economic contribution, a large proportion of Nigerian Micro, Small, and Medium Enterprises (MSMEs) continue to operate largely informally, often lacking structured corporate governance frameworks. To address this, the Financial Reporting Council of Nigeria (FRC) issued the SME Corporate Governance Guidelines 2024 (the SME Guidelines) in May 2024 to support SMEs in establishing robust business processes and preparing for future growth. While not mandatory, the Guidelines provide a reference framework for embedding good corporate governance practices, offering MSMEs an opportunity to strengthen internal systems, enhance transparency, accountability, and overall performance.
This article uses the Igbo Nwa-Boi apprenticeship system as a case study and microcosm of Nigeria's MSME ecosystem to examine how the SME Guidelines can be adopted in practice, particularly given the prevalence of informal onboarding, verbal contracts, undefined remuneration, succession challenges, limited documentation, and cultural expectations of post-settlement support that characterizes many Nigerian MSMEs.
Historical Background – The NWA BOI Apprenticeship System
The Igbo apprenticeship system, known as Igba Boi or Nwa Boi, originated in pre-colonial Igboland, where commerce thrived through family networks, kinship ties, and community trust. In this system, a young apprentice ("Boi") is typically engaged informally to train under an established businessman ("Oga") over six to eight years, undergoing intensive, hands-on learning. Upon completion, the apprentice receives seed capital, or "settlement," in cash, goods, or both, to establish their own business. The system expanded after the Nigerian Civil War, guided by the Igbo principle of "lekọta nwanne gị nwoke" ("take care of your brother"), helping thousands of displaced Igbos rebuild livelihoods and dominate sectors such as spare parts, electronics, building materials, and general merchandise. Over time, Igba Boi became recognised not only as a cultural practice but also as one of Nigeria's most effective informal frameworks for venture capital provision and startup incubation.
The Realities of the Nigerian MSME
The average Nigerian MSME, notwithstanding its successes, is fraught with varying challenges traceable, primarily, to the absence of efficient corporate governance practices or the poor implementation of same, if any.
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