In a bold push to formalise Nigeria’s vast informal economy, the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has begun approving free business name registrations for 250,000 micro, small and medium enterprises (MSMEs) in partnership with the Corporate Affairs Commission (CAC).
The initiative, launched under the Federal Government’s Renewed Hope Agenda, aims to break down financial and bureaucratic barriers that have long kept entrepreneurs from formalising their businesses, a foundational step toward growth and access to opportunities.
From Dreams to Documented Reality
Since its rollout, countless entrepreneurs who once struggled with the cost and complexity of formal registration have begun receiving approval notices in their inboxes, transforming hopes into legal reality.
Take Aisha, a tailor in Kano (name changed for privacy). For years she operated informally, hesitant to pay registration fees she could barely afford.
Last week, she received an official CAC approval email, free of charge, an affirmation that her business wasn’t just a side hustle, but a recognised enterprise. Through this new status, she now plans to open a bank account, access credit, and explore export options she never thought possible.
What this means for the economy
Formal business registration does more than put a name on paper, it unlocks credibility, financial services, market access, and government-backed opportunities. Yet, for many MSMEs, registration costs and procedural hurdles are prohibitive.
By waiving statutory fees, an estimated ₦3 billion in total, and integrating beneficiaries into SMEDAN’s national MSME database, the programme tackles one of the most persistent barriers to business growth.
This institutional recognition also primes entrepreneurs for capacity building, grants, and formal market participation.
How the Programme Works
Under the scheme:
The CAC waives all statutory fees for business name registration for 250,000 eligible
SMEDAN mobilises and profiles businesses, then supports them through the registration process.
Registered businesses receive official CAC certification, linking them to government services, finance, and market-enabling systems.
Business owners can begin the process via portal.smedan.gov.ng; those already in SMEDAN’s database are auto-qualified and guided step by step.
To ensure inclusivity, state-level SMEDAN offices and business clinics are offering hands-on assistance for entrepreneurs who may need help navigating the digital process.
A Turning Point for Nigeria’s Economy
Nigeria’s MSMEs account for the vast majority of businesses and workforce engagement, yet many remain informal, unable to fully contribute to or benefit from structured economic systems.
According to past reports, SMEs make up nearly 96 % of registered businesses and contribute significantly to GDP and employment.
This free registration drive doesn’t just expand official records, it marks a strategic push to integrate millions of informal enterprises into the formal economy, boosting government planning, investment inflows, and economic inclusion.
Looking Ahead
Analysts say this initiative could redefine Nigeria’s business landscape, moving entrepreneurs from informal survival to sustainable growth and competitiveness.
And with broader reforms, digital-friendly systems, and policy reviews underway, the formalisation of MSMEs may become the cornerstone of Nigeria’s economic resurgence in 2026 and beyond.
