In a major boost for Nigeria’s informal business sector, the Corporate Affairs Commission (CAC), in partnership with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), has launched a nationwide initiative to provide free business name registration for 250,000 Nano, Micro, and Small Enterprises (NMSEs) across the country.
The initiative was officially announced in Abuja during the signing of a Memorandum of Understanding (MoU) between the two agencies. It is designed to dismantle long-standing barriers that have prevented millions of Nigerian entrepreneurs from formalizing their businesses. High registration costs, bureaucratic hurdles, and lack of awareness have historically forced many small businesses to operate informally—cutting them off from funding opportunities, structured support, and government interventions.
With this collaboration, the Federal Government aims to close that gap and bring more businesses into the formal economy.
Aligning with the Renewed Hope Agenda
Speaking at the MoU signing ceremony, the Registrar-General of the CAC, Hussaini Ishaq Magaji (SAN), explained that the initiative aligns with the Federal Government’s Renewed Hope Agenda, which prioritizes economic inclusion, job creation, and support for small and growing businesses.
According to Magaji, the CAC will forgo an estimated ₦3 billion in registration revenue to ensure that entrepreneurs—especially nano and micro businesses—can legally register their businesses at no cost. He noted that formalization is a critical step toward building a sustainable and inclusive economy.
“This programme is about removing barriers and empowering Nigerian entrepreneurs to grow, scale, and contribute meaningfully to national development,” he stated.
Why Business Formalization Matters
For many small business owners, operating without registration has severe limitations. Unregistered businesses often struggle to access bank loans, grants, corporate contracts, and government support programmes. They also lack credibility in formal markets and face difficulties expanding beyond their immediate communities.
The Director-General of SMEDAN, Dr. Charles Odii, emphasized that formalization is the gateway to opportunity. Once registered, businesses become eligible for structured interventions, including funding, training, technical assistance, and market access initiatives.
He added that all beneficiaries of the free registration will be automatically integrated into SMEDAN’s MSME database, ensuring continuous aftercare, business development support, and access to future programmes.
Who Is Eligible?
The free business name registration programme is open to:
- Nano, Micro, and Small Enterprises operating across all 36 states and the Federal Capital Territory (FCT).
Businesses already listed in the SMEDAN database but not yet registered with Corporate Affairs Commission. - Newly established or unregistered businesses, provided they first enroll on the SMEDAN portal.
Importantly, businesses that already possess a SMEDAN certificate do not need to re-register.
SMEDAN has assured such businesses that they will be contacted directly with instructions on how to proceed with their free CAC registration.
Benefits of the Free CAC Registration
Businesses that successfully participate in the programme will enjoy several advantages, including:
- An official CAC Business Name Certificate.
- Inclusion in Nigeria’s national MSME database.
- Access to grants, funding opportunities, and business loans.
- Business advisory services and capacity-building programmes.
- Technical support and market access initiatives.
Beyond the certificate itself, the programme is structured to help businesses survive, scale, and compete in both local and national markets.
How to Apply
Interested business owners can apply by following these steps:
1. Visit the SMEDAN portal at https://portal.smedan.gov.ng
2. Sign up and complete the online business registration form.
3. When asked if you have a CAC number, select “No.”
4. Submit your details and complete the registration process.
5. Await confirmation and communication on the next steps to finalize the free CAC business name registration.
Entrepreneurs already registered with SMEDAN are advised to be patient, as they will be contacted directly once their applications are processed.
Nationwide Impact
The CAC-SMEDAN collaboration represents one of the most significant formalization drives for MSMEs in recent years. With 250,000 businesses targeted nationwide, the initiative is expected to strengthen Nigeria’s small business ecosystem, increase financial inclusion, and expand the government’s ability to support entrepreneurs effectively.
For traders, artisans, startups, service providers, and small-scale manufacturers, this programme removes financial and structural obstacles that have persisted for decades. It offers legitimacy, credibility, and a clear pathway into the formal economy.
A Rare Opportunity for Small Business Owners
As Nigeria continues to seek sustainable economic growth, empowering small businesses remains critical. This free registration initiative does more than issue certificates—it opens doors to long-term growth, resilience, and participation in national development.
Entrepreneurs across Nigeria are strongly encouraged to take advantage of this rare opportunity to formalize their businesses at zero cost, secure legal recognition, and position themselves for future opportunities.
With government agencies working together to support MSMEs, the message is clear: Nigeria’s small businesses matter—and now is the time to step into the formal economy.
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