Abuja, Sept. 26, 2025 (NAN) – The Corporate Affairs Commission (CAC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) are deepening their partnership to simplify business registration for small business owners nationwide.
The Registrar-General of CAC, Mr. Hussaini Magaji, made the announcement during the signing of a Memorandum of Understanding (MoU) between the two organisations on Friday in Abuja. The agreement is designed to provide a framework for free registration of 250,000 micro, small, and medium enterprises (MSMEs) across Nigeria.
Magaji explained that the initiative aligns with the Renewed Hope Agenda of President Bola Tinubu, removing cost barriers by waiving all statutory fees for eligible businesses. Entrepreneurs will now obtain certificates seamlessly, without delays or intermediaries, through the CAC online portal.
“Formalising a business is more than obtaining a certificate,” Magaji said. “It provides entrepreneurs with a legal identity, improves access to finance and markets, enhances record-keeping, and strengthens compliance with tax and regulatory obligations. For government, it expands the tax base, improves policy design, and reflects the contribution of the MSME sector.”
He added that formalising an additional 250,000 enterprises under this initiative will create jobs, foster innovation, and build a more inclusive economy. Magaji also urged the media to amplify the message so no deserving entrepreneur is left behind.
On his part, the Director-General of SMEDAN, Charles Odii, hailed the initiative as a milestone for small businesses, describing it as one of the “big wins” of the current administration. Odii explained that SMEDAN would mobilise, profile, and guide eligible businesses for registration through its dedicated online portal.
“The platform will eliminate middlemen who previously inflated registration costs, sometimes charging between N30,000 and N100,000 against the official CAC rate of about N11,000,” Odii said.
The director-general also noted that the initiative complements the President’s N200 billion economic assistance programme, which provides N50 billion in grants for nano businesses, N75 billion in single-digit loans for SMEs, and N75 billion for manufacturers. According to him, the interventions demonstrate the government’s resolve to reduce the cost of doing business and expand opportunities for entrepreneurs.
Odii stressed that the MoU comes at a critical time, as CAC plans to review its fees by October, ensuring that 250,000 businesses benefit from free registration before any fee increase.
Highlighting the importance of structure, Odii added, “Many businesses collapse within their first five years due to lack of formal registration. Registration is the first step in building resilient enterprises.”
Beyond registration, SMEDAN will provide ongoing support through business clinics, advisory services, and market linkages, in collaboration with other agencies such as the Standards Organisation of Nigeria (SON) and the Nigerian Export Promotion Council (NEPC).
Odii also praised the government’s decision to raise the tax exemption threshold for small businesses from N25 million to N50 million annual turnover, which reduces the financial burden on entrepreneurs and encourages compliance.
He concluded by thanking the Registrar-General of CAC, the Federal Ministry of Industry, Trade and Investment, and the Chief of Staff to the President for their support in bringing the initiative to fruition, reiterating the administration’s commitment to nurturing Nigeria’s MSME sector.
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Reporting by Peter Anene, Business Editor in Lagos, Nigeria.
