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In a bold move to accelerate the growth of small businesses and strengthen Nigeria’s entrepreneurial ecosystem, the Corporate Affairs Commission (CAC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have unveiled a free business registration scheme targeting 250,000 nano, micro, and small enterprises (MSMEs) across the country.

The initiative, announced on Friday in Abuja during the signing of a Memorandum of Understanding (MoU) between the two federal agencies, is positioned as one of the largest business formalisation drives in Nigeria’s history.

According to the agencies, the campaign is also part of activities commemorating the second anniversary in office of CAC Registrar-General, Hussaini Magaji, and SMEDAN Director-General, Charles Odii, who were both appointed in October 2023.

Breaking Barriers for Entrepreneurs

Speaking at the event, CAC Registrar-General Hussaini Magaji described the scheme as a direct intervention under the economic vision of President Bola Ahmed Tinubu, aimed at breaking long-standing barriers faced by entrepreneurs.

“This drive is about breaking down the barriers that keep too many of our small businesses informal,” Magaji stated.

“By removing the cost of business name registration for 250,000 enterprises, we are helping more entrepreneurs take the first step towards 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.

Boosting Growth, Reducing SME Failures

On his part, SMEDAN’s Director-General Charles Odii emphasised that the partnership is designed not only to support new businesses but also to address high mortality rates among Nigerian SMEs.

“Formalisation is the gateway to support. By ensuring these businesses are registered and onboarded into our database, we can provide continuous aftercare, whether that is access to grants, training, or new markets,” Odii said.

He further urged entrepreneurs to take immediate advantage of the scheme, explaining that the process begins with registration on the agency’s portal: portal.smedan.gov.ng.

A Lifeline for Nigerian Entrepreneurs

With millions of informal businesses operating in Nigeria, the scheme is widely expected to transform access to finance, expand market opportunities, and strengthen compliance for small businesses. Experts believe it will also significantly boost Nigeria’s ease of doing business ranking.

The federal government’s intervention comes at a time when the MSME sector contributes nearly 50% of Nigeria’s GDP and employs over 80% of the workforce, yet remains largely underformalised.

By waiving the cost of registration, the government hopes to build a more robust ecosystem where entrepreneurship thrives, jobs are created, and innovation drives inclusive economic growth.