In a major boost for Nigeria’s small business community, the Corporate Affairs Commission (CAC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have signed a Memorandum of Understanding (MoU) to ease business registration and formalise 250,000 Micro, Small and Medium Enterprises (MSMEs) across the country.
The agreement, signed in Abuja on Friday, waives all statutory fees for eligible entrepreneurs under President Bola Tinubu’s Renewed Hope Agenda, eliminating a long-standing cost barrier.
Registrar-General of CAC, Mr. Hussaini Magaji, said the initiative would enable entrepreneurs to obtain certificates seamlessly through the CAC portal without delays or middlemen.
“Formalising a business provides entrepreneurs with legal identity, improves access to finance and markets, enhances record-keeping and strengthens compliance with regulatory obligations,” Magaji noted. “For government, it expands the tax base and supports better policy design. By formalising an additional 250,000 enterprises, we are helping to create jobs, foster innovation and build a more inclusive economy.”
Magaji commended SMEDAN’s role in mobilising businesses and urged entrepreneurs to take advantage of the opportunity. He also called on the media to amplify the message to ensure no eligible business is left behind.
SMEDAN’s Director-General, Charles Odii, described the partnership as a milestone for small businesses, stressing that it would eliminate exploitation by middlemen who previously inflated registration costs—sometimes charging between N30,000 and N100,000, compared to the official CAC rate of about N11,000.
He explained that SMEDAN would profile and guide businesses for registration through its online portal, ensuring transparency and wider access. “This initiative complements the President’s N200 billion economic assistance programme, which includes N50 billion in grants for nano businesses, N75 billion in single-digit loans for SMEs and N75 billion for manufacturers,” Odii said.
According to him, the MoU is timely, as the CAC prepares to review its fees in October. “This guarantees that 250,000 businesses will benefit from free registration before the review,” he added.
Odii highlighted that many Nigerian businesses collapse within their first five years due to weak structures, noting that registration is a vital first step toward resilience. He assured that SMEDAN would continue supporting entrepreneurs with business clinics, advisory services and market linkages, working with agencies such as the Standards Organisation of Nigeria (SON) and the Nigerian Export Promotion Council (NEPC).
He further applauded the government’s move to raise the tax exemption threshold for small businesses with turnover up to N50 million, up from N25 million, describing it as a relief measure that will encourage compliance and growth.
