GOOD NEWS FOR MSMES: FG Launches Free Business Registration for MSMEs in Nigeria

By: Olufemi Orunsola 

In a major move towards deepening ease of doing business and facilitating the onboarding of enterprises into the formal business sector in Nigeria, the Corporate Affairs Commission (CAC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have launched a nationwide drive to provide free business registration for 250,000 nano, micro and small enterprises across the country.

OPEN TELEVISION NAIJA (OTN) News reports as gathered that the new initiative was announced in Abuja over the last weekend during  signing of a Memorandum of Understanding (MoU) between the two agencies which forms part of activities marking the second year in office of CAC Registrar-General Hussaini Ishaq Magaji, SAN, and SMEDAN Director-General Dr. Charles Odii, who were both appointed in October 2023.

According to the CAC Registrar-General, Hussaini Ishaq Magaji, “Formalization has long been a hurdle for many small businesses, with cost, bureaucracy, and lack of awareness keeping millions of entrepreneurs in the informal sector. This often denies them access to finance, markets and government support. The new CAC–SMEDAN scheme removes these barriers by covering the cost of registration and linking beneficiaries directly to SMEDAN’s MSME database.

He further revealed that, "Through this database, registered businesses will gain access to aftercare and opportunities such as grants, capacity-building programmes, technical support and market linkages.

“This drive is about breaking down the barriers that keep too many of our small businesses informal. 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. It is also an investment in the MSME ecosystem, as the Commission is forgoing approximately ₦3 billion in registration fees to make this possible," he added.

Similarly, the Director-General, SMEDAN, Mr. Charles Odii, added that the “Formalization is the gateway to support. 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. The first step for any MSME wishing to benefit is to register on our portal at portal.smedan.gov.ng”

“Every MSME in our database without a CAC registration will be offered this free registration initiative. For those who are not digital natives, SMEDAN State Offices nationwide will provide support, and at physical events such as our Business Clinics, the agency will also be available to onboard entrepreneurs.”