When Bola Ahmed Tinubu, President of Nigeria announced a free business registration drive on September 26, 2025, the country’s tiny entrepreneurs suddenly had a reason to celebrate.
The announcement came at the Free Business Registration LaunchAbuja, where Hussaini Ishaq Magaji, Registrar‑General of the Corporate Affairs Commission (CAC) signed a memorandum of understanding with Charles Odii, Director‑General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). Their partnership will waive roughly ₦3 billion in statutory fees and open a streamlined portal for 250,000 nano, micro and small enterprises across all 36 states and the Federal Capital Territory.
Why formalising Nigeria’s informal economy matters
Nigeria’s informal sector boasts an estimated 70 percent of total employment, yet most of those businesses operate in the shadows because registration costs and red tape are prohibitive. Without a formal registration, entrepreneurs cannot access bank loans, government contracts or the growing digital marketplaces that are reshaping African commerce.
Previous attempts – such as the 2020 “One‑Stop Registration” pilot – faltered due to fragmented data and limited outreach. The new scheme aims to correct those flaws by leveraging SMEDAN’s existing MSME database, which already houses over 1.2 million active profiles.
Details of the free registration scheme
Under the agreement, CAC will completely waive the incorporation fee, the name reservation charge and the annual return cost for qualifying nano, micro and small enterprises (NMSMEs). To qualify, a firm must employ fewer than 20 staff, have an annual turnover under ₦50 million, and operate in sectors such as tailoring, hairdressing, barbering, petty trade, agro‑processing or small‑scale manufacturing.
Entrepreneurs can enrol by visiting portal.smedan.gov.ng, filling a short online form, and uploading a copy of a valid ID and proof of address. Within 48 hours, CAC will issue a digital certificate of incorporation, and the business will automatically be entered into SMEDAN’s grant and training pipelines.
Benefits beyond the certificate include access to:
- Targeted grants totalling up to ₦2 million per approved business.
- Quarterly capacity‑building workshops on digital marketing, basic accounting and export readiness.
- Inclusion in the Expanded National MSME Clinics, a network of physical hubs that connect entrepreneurs with regulatory advice and market intelligence.
Official reactions and on‑the‑ground sentiment
Kashim Shettima, Vice President of Nigeria praised the launch, saying, “The Expanded National MSME Clinics stand as a symbol of empowerment, a place where innovation thrives and the spirit of entrepreneurship is not checked by strategic governance.” He added that the clinics would act as “a singular platform where small businesses can present challenges and receive timely intervention.”
SMEDAN officials highlighted that the programme dovetails with President Tinubu’s Renewed Hope Agenda, a two‑year plan that promises to create 5 million jobs through private‑sector growth. “We are moving from a policy‑talk environment to concrete action,” noted Charles Odii during the ceremony.
Grassroots reactions have been mixed but hopeful. Fatima Ibrahim, a Lagos‑based tailor who runs a one‑woman workshop, told reporters, “I’ve been waiting for this for years. The fees stopped me from getting a real business licence, and now I can finally apply for a loan.” Meanwhile, some business‑association leaders warned that the rollout must be monitored closely to avoid corruption or uneven geographic coverage.
Projected impact and potential challenges
The government estimates that formalising 250,000 enterprises could unlock up to ₦15 billion in additional tax revenue over the next five years, while also paving the way for a 12‑percent increase in SME‑driven GDP. Analysts at PwC Nigeria project that, if 60 percent of registered firms secure a single grant, the cumulative increase in productive capacity could be worth ₦8 billion. However, challenges loom. First, the digital literacy gap in rural areas may curb uptake; the government has pledged to partner with telecom firms to provide free data bundles for registration. Second, ensuring that the certificates are accepted by banks and procurement agencies will require a coordinated outreach campaign.
Finally, the scheme’s success hinges on transparent monitoring. CAC and SMEDAN will publish monthly dashboards showing registrations by state, sector and gender, a move intended to keep civil‑society watchdogs in the loop.
What’s next for Nigeria’s SMEs?
In the coming weeks, CAC will roll out mobile registration vans to reach remote communities in the North East and South‑South zones. Simultaneously, SMEDAN is piloting a “Mentor‑Match” platform that pairs newly registered firms with seasoned entrepreneurs who have successfully transitioned to the formal sector. The administration has also hinted at a future amendment to the Companies and Allied Matters Act (CAMA) that could lower the minimum share capital requirement for micro enterprises, further reducing entry barriers.
Frequently Asked Questions
Who can apply for the free registration?
Any nano, micro or small enterprise with fewer than 20 employees, an annual turnover below ₦50 million, and operating in designated sectors such as tailoring, hairdressing or agro‑processing can register for free through the SMEDAN portal.
What financial support becomes available after registration?
Registered businesses gain access to SMEDAN‑managed grants of up to ₦2 million, discounted training programs, and priority consideration for government procurement tenders that require a formal licence.
How will the government ensure the scheme stays transparent?
Both CAC and SMEDAN will release monthly dashboards detailing the number of registrations per state, sector and gender. Independent watchdog groups have been invited to audit the data and report any irregularities.
When will the mobile registration units start operating?
The mobile units are scheduled to begin visits in early October 2025, starting with underserved regions in the North East, before expanding nationwide over the next three months.
What long‑term benefits does the government expect?
Beyond immediate job creation, the administration projects an additional ₦15 billion in tax revenue and a 12 percent boost to SME‑driven GDP by 2030, as formal businesses gain better access to finance and markets.
Rashi Nirmaan
September 29, 2025 AT 18:34It is commendable that the federal administration is finally addressing the systemic marginalisation of indigenous entrepreneurs through a zero‑cost registration initiative. The waiver of ₦3 billion in statutory fees signals a decisive policy shift. By targeting nano, micro and small enterprises the scheme aligns with the broader Renewed Hope Agenda. This move should reduce the entry barriers that have long stifled grassroots innovation.