In a major breakthrough for Nigerian entrepreneurs, the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has entered into a landmark partnership with the Corporate Affairs Commission (CAC) to offer free business registration to 250,000 Micro, Small, and Medium Enterprises (MSMEs) across the country. This bold initiative is a significant step toward breaking down one of the most persistent barriers to business growth in Nigeria — the high cost of formal registration.
Breaking Barriers for Entrepreneurs
For many aspiring business owners, the journey to formalizing their enterprises has been hampered by financial constraints. Registering a business with the CAC typically costs around ₦11,000, a sum that, while modest for some, remains a substantial obstacle for many small businesses and startups trying to find their footing. Recognizing this challenge, SMEDAN and CAC have united forces to ensure that thousands of businesses can now enter the formal economy completely free of charge.
The Memorandum of Understanding (MoU) cementing this partnership was signed at the CAC headquarters in Abuja, with media representatives, officials from both agencies, and their leaders — Registrar-General of CAC, Hussaini Ishaq Magaji, and Director-General of SMEDAN, Charles Odii — in attendance. This collaboration reflects a shared vision: to empower Nigeria’s growing MSME sector and unlock its vast potential.
A Key Pillar of the Renewed Hope Agenda
The initiative is part of President Bola Ahmed Tinubu’s Renewed Hope Agenda, a comprehensive economic strategy aimed at fostering innovation, promoting inclusive growth, and creating employment opportunities nationwide. By eliminating the registration cost barrier, the government and its agencies are sending a clear message — that small businesses are the backbone of the economy and deserve every possible support to thrive.
Speaking at the event, both Magaji and Odii highlighted that the free registration program is more than just a cost-saving measure; it is a strategic move to formalize informal businesses, broaden the tax base, and create a more structured ecosystem where small enterprises can grow and compete effectively.
Why Business Registration Matters
Formal business registration is more than a legal requirement — it’s a gateway to growth and credibility. Many MSMEs operate informally, which limits their access to vital opportunities such as government grants, loans, contracts, and partnerships. By registering their businesses, entrepreneurs can:
Build credibility with customers, investors, and financial institutions.
Access funding opportunities and government interventions.
Participate in local and international trade by meeting regulatory requirements.
Protect their brand and intellectual property through legal recognition.
Scale their operations with confidence, knowing they operate within the law.
This free registration program aims to encourage more businesses to take this crucial step without the financial burden that often holds them back.
A New Era for Nigeria’s MSMEs
SMEDAN has consistently championed the growth of MSMEs, which contribute significantly to Nigeria’s GDP and employment. This collaboration with CAC is yet another example of the agency’s commitment to creating an enabling environment where small businesses can thrive.
By formalizing 250,000 businesses, the partnership is not only expanding the formal economy but also laying a stronger foundation for innovation, job creation, and sustainable development. For many entrepreneurs, this could be the launchpad that transforms their ideas into thriving enterprises capable of competing on both local and global stages.
In conclusion, the SMEDAN-CAC partnership represents more than a policy move — it’s a transformative opportunity for thousands of Nigerian entrepreneurs. With free registration now within reach, the dream of building a successful, legally recognized business is closer than ever. This initiative signals a new era of inclusivity, growth, and hope for the nation’s MSME sector, empowering entrepreneurs to turn their visions into impactful, job-creating realities.
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