The Corporate Affairs Commission (CAC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have launched an initiative to provide free business registration for 250,000 Nigerian SMEs.
The move was announced during the signing of a Memorandum of Understanding (MoU) in Abuja. Speaking at the event, Hussaini Ishaq Magaji, Registrar-General of CAC, said the scheme is aimed at reducing barriers for entrepreneurs and strengthening Nigeria’s MSME ecosystem.
“This drive is about breaking down the barriers that keep too many of our small businesses informal,” Magaji said. “By removing the cost of business name registration for 250,000 businesses, we are helping more entrepreneurs take the first step toward growth, legitimacy, and access to bigger opportunities.”
By waiving fees amounting to approximately ₦3 billion, Magaji said the CAC removes one of the most significant obstacles that have discouraged small businesses from formalising.
What You Should Know
Charles Odii, SMEDAN Director-General, emphasized that formalisation is the gateway to continuous support and growth for MSMEs.
“By ensuring that these businesses are registered and also onboarded into our database, we can provide continuous aftercare, whether that’s access to grants, training, or new markets,” Odii said.
Odii also assured that MSMEs already in SMEDAN’s database without CAC registration will automatically qualify for the initiative. For those unfamiliar with digital processes, SMEDAN State Offices and physical Business Clinics will provide support.
Fear of taxation has historically discouraged formalisation. Odii explained that reforms in the new tax framework, effective 2026, raise the exemption threshold, reducing concerns about tax liabilities for small businesses.
What This Means for Nigerians
According to industry leaders, the free registration initiative has significant implications for Nigerian entrepreneurs and the broader economy, including:
- Access to Finance: Formal registration allows MSMEs to open corporate bank accounts, apply for loans, and attract investors.
- Market Expansion: Registered businesses can participate in government contracts and link to domestic and international markets.
- Capacity Building: Entrepreneurs gain access to training, mentorship, and technical support programs.
- Economic Growth: By formalising 250,000 businesses, the government strengthens the MSME sector, which contributes significantly to GDP and employment.
- Reduced Informality: The initiative encourages small businesses to move from the informal to the formal sector, ensuring compliance and long-term sustainability.
How to Apply
Entrepreneurs can register at portal.smedan.gov.ng. MSMEs already in SMEDAN’s database but without CAC registration will automatically be contacted with next steps for certification.
The CAC said the initiative represents a major step in empowering Nigeria’s small business ecosystem, providing 250,000 entrepreneurs nationwide with the tools and legitimacy needed to grow their enterprises.
According to experts, Nigerians benefit not just from waived registration fees but also from enhanced growth opportunities, legal recognition, and inclusion in government support programs.
Talking Points
It is impressive that CAC and SMEDAN have designed this free business registration for 250,000 Nigerian SMEs, to remove one of the most persistent barriers for Nigerian entrepreneurs: the cost of formalisation.
By waiving ₦3 billion in registration fees, the initiative directly addresses a major hurdle that has kept millions of small businesses operating informally.
At Techparley, we see how this free business registration for 250,000 Nigerian SMEs can strengthen Nigeria’s ecosystem. By formalising 250,000 nano, micro, and small enterprises and linking them to SMEDAN’s MSME database, businesses gain access to market opportunities that were previously out of reach.
The integration of registration with continuous aftercare means entrepreneurs can now operate with the same legitimacy as larger firms, which could accelerate growth, access to finance, and market participation.
For many informal operators, this initiative represents the first real step toward scaling their businesses and enjoying the protections and benefits of the formal sector.
With the right follow-through, this collaboration between CAC and SMEDAN has the potential to transform Nigeria’s informal economy.
