CAC and SMEDAN offer free business registration

The Corporate Affairs Commission and the Small and Medium Enterprises Development Agency of Nigeria have come together to launch a major programme that is expected to change the way small businesses operate across the country. Both agencies have signed a Memorandum of Understanding that will provide free business name registration for 250,000 nano, micro, and small enterprises nationwide. For many small business owners, this is a breakthrough that removes one of the biggest hurdles they face in formalising their operations.

The announcement was made in Abuja and was described by both agencies as a landmark initiative in Nigeria’s journey toward strengthening the micro, small, and medium enterprise ecosystem. According to the details shared, the programme is part of activities marking the second year in office of Hussaini Ishaq Magaji, the Registrar-General of the Corporate Affairs Commission, and Charles Odii, the Director-General of SMEDAN. Both men were appointed in October 2023 and have since worked closely on policies that aim to expand opportunities for small businesses.

One of the biggest challenges for small businesses in Nigeria has always been formalisation. For years, many entrepreneurs have operated informally due to the cost of registering a business, complex bureaucratic procedures, and limited awareness of the benefits of being registered. Unfortunately, this has also meant that many of these businesses miss out on vital opportunities such as access to loans, government support, or structured markets. Without formal registration, a business may remain invisible to investors, banks, and even government agencies designed to support growth.

This new scheme changes the story by removing the financial burden of registration. The cost, which many entrepreneurs cannot easily afford, will be covered under the scheme. The programme also links beneficiaries directly to the SMEDAN MSME database, giving them access to aftercare services. These services include training, grants, technical support, and access to new markets. In short, registration will no longer be just a certificate on paper but a doorway to opportunities that can help businesses grow and survive in a competitive economy.

At the signing of the agreement, the CAC Registrar-General explained that the reforms being carried out under President Bola Tinubu’s administration are meant to create a more enabling environment for entrepreneurs. He pointed to recent government actions such as the unification of the exchange rate, massive investments in infrastructure, and targeted financial programmes like the 200 billion naira assistance package for nano businesses, SMEs, and manufacturers. He stressed that the free registration drive is part of breaking down barriers that keep small businesses stuck in the informal sector.

Magaji also revealed that the Commission is effectively forgoing about three billion naira in potential fees in order to make the initiative possible. This, he said, is a deliberate investment in the future of the Nigerian MSME ecosystem. He described it as a way to help entrepreneurs take their first steps toward legitimacy, growth, and sustainability.

On his part, the Director-General of SMEDAN, Charles Odii, emphasized that the scheme will help reduce the number of unregistered businesses operating illegally and decrease the rate at which small businesses collapse in Nigeria. He explained that by registering and joining the SMEDAN database, businesses will not only become visible but will also enjoy continuous support. This support could be in the form of grants, access to new markets, or capacity-building programmes. He encouraged entrepreneurs to sign up at portal.smedan.gov.ng and assured that those already listed in the SMEDAN database without CAC registration will automatically qualify.

Odii acknowledged that not every business owner is comfortable with online registration, especially those who are not used to digital tools. To address this, SMEDAN state offices across Nigeria will provide physical support to help entrepreneurs through the process. Additionally, at Business Clinics and other outreach events, officials will be available to onboard participants into the programme.

Another common concern among small business owners has been taxation. Many entrepreneurs fear that once they register, they will immediately face heavy tax obligations that could eat into their small profits. Odii addressed this directly by noting that the new tax framework, which will take effect in 2026, raises the exemption threshold. This means many small businesses will not be burdened by taxes immediately after registration. According to him, this reform provides reassurance that registration is about growth and access to support, not about over-taxing new businesses.

Odii also mentioned that although the CAC is preparing to review its fee structure, the free registration initiative will not be affected. No matter what the new fees turn out to be, 250,000 businesses across all 36 states and the Federal Capital Territory will benefit from this scheme. This, he said, shows the seriousness of the government in supporting entrepreneurs and making the business environment friendlier.

Both Odii and Magaji praised President Tinubu for his commitment to supporting small businesses and driving the broader economic agenda. They said the initiative fits well into the Renewed Hope agenda by lowering barriers for entrepreneurs and creating a stronger environment for growth. For many Nigerians who dream of starting or growing a business, this initiative could be the turning point that gives them the legitimacy and support they need.

To apply, entrepreneurs are expected to visit the SMEDAN portal and complete the registration form. For those already on SMEDAN’s database without CAC certification, registration will be automatic. Once completed, beneficiaries will be contacted with the next steps for obtaining their CAC certificate. The entire process is designed to be simple and accessible so that even small roadside businesses, artisans, and market women can take advantage of it.

The free business name registration drive is therefore more than just a symbolic gesture. It represents a concrete step towards building a stronger MSME sector, promoting formalisation, and opening doors for countless entrepreneurs. By removing cost barriers, linking registration to support services, and addressing fears around taxation, the government is signalling its intention to build an economy where small businesses can thrive. For the young tailor, the roadside mechanic, the food vendor, or the online retailer, this initiative offers hope that their businesses can grow into stable and recognized ventures, contributing not only to their personal livelihoods but also to the Nigerian economy as a whole.