The Nigerian government has launched a free business registration scheme aimed at formalizing 250,000 nano, micro, and small enterprises in the country. The initiative is a collaborative effort between the Corporate Affairs Commission (CAC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). According to the agencies, the scheme is part of President Bola Ahmed Tinubu’s efforts to expand opportunities for small businesses and entrepreneurs across the country.
The CAC and SMEDAN signed a Memorandum of Understanding in Abuja to kick-start the campaign, which marks the second year in office of CAC Registrar-General Hussaini Magaji and SMEDAN Director-General Charles Odii. The federal government agencies emphasized that the initiative is geared towards breaking down barriers that hinder small businesses from formalizing their operations. By removing the cost of business name registration for 250,000 businesses, the government aims to help more entrepreneurs take the first step towards growth, legitimacy, and access to bigger opportunities.
The CAC is forgoing approximately N3 billion in registration fees to implement the scheme, which is seen as an investment in the Micro, Small, and Medium Enterprises (MSME) ecosystem. SMEDAN Director-General Charles Odii explained that the initiative aims to reduce the number of illegal businesses and decrease the collapse rate of SMEs in Nigeria. He noted that formalization is the gateway to support, enabling registered businesses to access grants, training, and new markets. To benefit from the scheme, MSMEs are required to register on the SMEDAN portal at portal.smedan.gov.ng.
The free business registration scheme is a significant step towards promoting entrepreneurship and economic growth in Nigeria. With the country’s large informal sector, the initiative is expected to encourage more small businesses to formalize their operations, thereby increasing their access to credit, markets, and other resources. The successful implementation of the scheme will depend on the ability of the CAC and SMEDAN to effectively coordinate their efforts and provide the necessary support to MSMEs. As the Nigerian government continues to implement policies aimed at promoting economic growth and development, the free business registration scheme is a positive step towards creating a more conducive business environment for small enterprises.
