Two Nigerian government agencies, the Corporate Affairs Commission (CAC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), have unveiled a free business registration initiative aimed at formalizing 250,000 nano, micro, and small enterprises across the country.

The announcement came after the agencies signed a Memorandum of Understanding (MoU) in Abuja on Friday, marking the second year in office of CAC Registrar-General Hussaini Magaji and SMEDAN Director-General Charles Odii, both appointed in October 2023.

Registrar-General Magaji explained that the initiative is part of President Bola Ahmed Tinubu’s plan to expand opportunities for small businesses and entrepreneurs nationwide. By waiving approximately ₦3 billion in registration fees, the scheme removes barriers that keep many businesses informal, allowing entrepreneurs to take their first step toward growth, legitimacy, and access to bigger opportunities.

“This drive is about breaking down the barriers that keep too many of our small businesses informal,” Magaji said. “By removing the cost of business name registration for 250,000 businesses, we are helping more entrepreneurs take the first step towards growth, legitimacy, and access to bigger opportunities.”

SMEDAN’s Odii added that the initiative also aims to reduce the number of illegal businesses and decrease the collapse rate of SMEs in Nigeria, ultimately strengthening the country’s MSME ecosystem.

With this scheme, thousands of Nigerian entrepreneurs now have the chance to formalize their businesses, paving the way for growth, funding, and greater economic participation.