When Corporate Affairs Commission teamed up with Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) on 26 September 2025, they unveiled a plan to roll out free registration for a quarter‑million nano, micro and small enterprises across Nigeria. The memorandum of understanding was signed in Abuja in a modest ceremony attended by senior officials and dozens of hopeful entrepreneurs.
Here's the thing: despite accounting for roughly 90 % of the country's employment, most MSMEs in Nigeria operate informally because setting up a company can cost up to ₦12,000 in fees and take weeks of paperwork. The new scheme slashes that barrier by wiping out roughly ₦3 billion in registration fees, according to the agencies.
Background: The Informal MSME Landscape
Nigeria’s informal sector has long been a double‑edged sword. On one hand, it offers a safety net for people who can’t get formal jobs; on the other, it locks businesses out of credit, government contracts and legal protection. A 2023 World Bank report estimated that only 34 % of Nigerian firms were officially registered, leaving the remaining 66 % to shoulder higher tax rates and limited market access.
This is where the partnership steps in. By funneling these unregistered firms into SMEDAN’s central MSME database, the government hopes to create a searchable platform that matches businesses with grants, technical assistance and export opportunities. The database, launched two years ago, already holds information on about 1.2 million enterprises, but many of those are merely “tick‑box” entries without proper legal status.
Details of the Free Registration Initiative
During the launch, Charles Odii, Director General of SMEDAN, announced that “250,000 small businesses today would be registered free of charge with the CAC.” He explained that the registration will be processed through the CAC’s online portal, which, he boasted, can now complete a name reservation and full incorporation in under ten minutes.
The portal upgrade, a joint investment of ₦1.2 billion, introduced biometric verification and AI‑driven name‑conflict checks. “What we are providing in the whole world, nowhere in the world you can register a business in less than 10 minutes. But here, the corporate affairs commission now has a portal without any challenge—you can register your name, register your business in less than 10 minutes,” said Hussaini Ishaq Magaji, Registrar‑General of the CAC.
Key points of the scheme:
- Eligibility: nano, micro and small enterprises defined as having less than 50 employees and annual turnover under ₦100 million.
- Cost: full waiver of registration, name reservation and statutory filing fees, valued at approximately ₦12,000 per business.
- Process: simple online application, verification within 24 hours, certificate issuance electronically.
- After‑registration support: automatic enrollment in SMEDAN’s capacity‑building programs and eligibility for the federal credit guarantee scheme.
- Timeline: registrations open on 1 October 2025 and close on 31 March 2026, with a target of 250,000 completions.
Reactions from Agency Leaders
The mood among the officials was optimistic. Hussaini Magaji emphasized that “the fear about taxes has been eliminated. They fear about nuisance taxes have been eliminated and then they can begin to run the operations by doing business the legitimate way.” He added that the move helps “bridge that divide between government and the audience so that people can take advantage of this.”
Meanwhile, Charles Odii argued that formalisation is the “number one step to structuring your business.” He pointed to a recent study by the Central Bank of Nigeria showing that formally registered firms enjoy, on average, 27 % higher loan approval rates compared with their informal counterparts.
Both leaders praised President Bola Ahmed Tinubu for championing the initiative as part of the Renewed Hope Agenda. The President’s 2024 speech had highlighted MSME empowerment as a pillar for job creation and GDP growth, and this scheme appears to be the most tangible follow‑up yet.
Potential Economic Impact
Analysts say the ripple effect could be significant. A June 2025 forecast by PwC projected that formalising just 10 % of the informal MSME base could boost Nigeria’s GDP by ₦4.5 trillion over the next five years. That gain would stem from improved tax compliance, better access to finance, and increased participation in export markets.
Moreover, the waived fees represent a direct cash infusion for entrepreneurs. If each of the 250,000 beneficiaries saves ₦12,000, that’s a collective ₦3 billion that can be redirected into inventory, hiring or digital tools. “It’s like giving a small shopkeeper the seed money to expand,” remarked economic commentator Amira Yusuf of the Lagos Business School.
The initiative also dovetails with the World Bank’s “Formalisation and Growth” programme, which recommends streamlined digital registration as a cornerstone for inclusive economies. Nigeria’s new portal could become a regional model, especially if the ten‑minute claim holds up under volume.
Next Steps and Implementation Timeline
The registration drive kicks off on 1 October 2025. Small business owners are urged to visit the CAC’s website, create an account, and upload basic identity documents. SMEDAN will run a series of webinars in October and November to walk participants through the process, and regional field officers will host pop‑up help desks in markets across Lagos, Kano, Port Harcourt and Enugu.
A monitoring committee comprising representatives from the Ministry of Industry, Trade and Investment, the Central Bank, and the two lead agencies will track progress weekly. The committee plans to release a public dashboard by mid‑December, showing the number of businesses registered, sector breakdowns and the amount of subsequent grant funding allocated.
In the longer term, officials say the database will feed into a national credit scoring system, making it easier for banks to assess loan applications from newly formalised firms. If the pilot succeeds, the government is already eyeing an expansion to cover an additional 500,000 businesses in 2027.
Frequently Asked Questions
Who is eligible for the free registration?
Nano, micro and small enterprises—defined as firms with fewer than 50 staff and annual turnover under ₦100 million—can apply through the CAC portal between 1 October 2025 and 31 March 2026.
How does the programme help businesses after registration?
Registered firms are automatically entered into SMEDAN’s MSME database, granting them access to grant programmes, capacity‑building workshops, market‑linkage services and eligibility for the federal credit guarantee scheme.
What role does President Bola Ahmed Tinubu play in the initiative?
The President championed the scheme under his Renewed Hope Agenda, pledging fiscal support and policy reforms to encourage MSME formalisation across the country.
How much money is the government saving by waiving fees?
The fee waiver is valued at roughly ₦3 billion, assuming each of the 250,000 businesses would have paid about ₦12,000 in registration costs.
When will the impact of the programme be measured?
A monitoring committee will publish quarterly reports, with the first comprehensive impact review slated for December 2026, assessing formalisation rates, loan access and contribution to GDP.
Comments
Sandhya Mohan
September 29, 2025 AT 20:27Thinking about the free registration scheme, I can't help but feel it's a quiet revolution for the countless dreamers hustling in the shadows. The act of formalising a business, however small, is like planting a seed that hopes to touch the sky someday.