Why CAC, SMEDAN Made MSME Registration Free

The Corporate Affairs Commission (CAC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have outlined steps for entrepreneurs to take advantage of the federal government’s free business registration initiative.

The programme, designed to formalise 250,000 nano, micro, and small businesses nationwide, was officially announced on Friday in Abuja during the signing of a Memorandum of Understanding between both agencies.

The initiative coincides with the second anniversary of CAC Registrar-General Hussaini Magaji and SMEDAN Director-General Charles Odii, who assumed office in October 2023.

Speaking at the event, Magaji noted that the registration drive aligns with President Bola Ahmed Tinubu’s vision to expand opportunities for small businesses and entrepreneurs. He revealed that CAC is foregoing about ₦3 billion in registration fees to enable the scheme.

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“This initiative is about removing the barriers that keep too many enterprises outside the formal space,” Magaji explained. “By waiving registration costs for 250,000 businesses, we are giving entrepreneurs the foundation they need for growth, legitimacy, and access to broader opportunities. It is, in essence, an investment in Nigeria’s MSME ecosystem.”

Echoing the same sentiment, Odii said the move is intended to reduce the prevalence of unregistered enterprises and curb the high failure rate of small businesses in the country.

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“Formalisation is the entry point to support,” he said. “Once these businesses are registered and captured in our database, they can benefit from follow-up assistance — whether in the form of grants, training programmes, or market linkages. The process begins with registration on our portal at portal.smedan.gov.ng.”