The Federal Government has launched an ambitious initiative to register 250,000 Micro, Small, and Medium Enterprises (MSMEs) free of charge, in a move aimed at bringing millions of informal businesses into the formal economy.
This was made known on SMEDAN’s X handle on Friday.
The Corporate Affairs Commission (CAC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) unveiled the programme on Friday, September 26, during a Memorandum of Understanding (MoU) signing ceremony in Abuja.
According to the agencies, the free business name registration drive “is designed to strengthen Nigeria’s MSME ecosystem by promoting formalization and reducing barriers to growth, in line with the Federal Government’s Renewed Hope vision.”
The initiative addresses a longstanding challenge that has kept millions of Nigerian entrepreneurs in the informal sector. “Formalization has long been a challenge for many small businesses, with cost, bureaucracy, and lack of awareness keeping millions in the informal sector. This often denies them access to finance, markets, and government support,” the joint statement noted.
CAC Registrar-General Hussaini Ishaq Magaji, SAN, emphasized the transformative potential of the programme, stating that “the free registration drive is aimed at breaking barriers that keep many businesses informal by removing the cost of registration and helping entrepreneurs access growth opportunities.”
SMEDAN Director-General Dr. Charles Odii highlighted the comprehensive support system accompanying the registration. “Formalization is the gateway to support,” Dr. Odii said, noting that registered businesses will benefit from continuous aftercare such as grants, training, and market access.
Beyond free registration, the scheme connects beneficiaries directly to SMEDAN’s MSME database, granting them access to “aftercare services and opportunities such as grants, capacity-building programmes, technical support, and market linkages.”
The financial commitment is substantial, with the two agency heads noting that “the initiative represents a major investment in Nigeria’s MSME ecosystem, with CAC foregoing about ₦3 billion in fees, while SMEDAN provides the support system to ensure businesses not only register but also thrive.”
Both leaders emphasized the programme’s alignment with broader government objectives. “They agreed that this collaboration gives practical meaning to the Federal Government’s Renewed Hope agenda by lowering barriers and creating an enabling environment for entrepreneurs,” according to the announcement.
The initiative is expected to significantly expand the formal MSME sector, which is widely recognized as critical to job creation and economic development in Nigeria.
