CAC, SMEDAN sign MoU to provide free registration for 250,000 MSMEs

The Corporate Affairs Commission (CAC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have signed a memorandum of understanding (MoU) to offer free registration of business names to 250,000 micro, small, and medium-sized enterprises (MSMEs).

The agencies signed the MOU at a press conference in Abuja on Friday, offering free registration for businesses via SMEDAN’s website over the next three months.

Hussaini Magaji, the chief executive officer (CEO) of the CAC, said the initiative is part of the ‘renewed hope’ agenda, which has introduced significant reforms and policy innovations to drive economic growth and development.

Magaji said the free registration builds on previous efforts, including a $200 billion economic assistance programme for nano businesses, SMEs, and manufacturers, demonstrating the administration’s commitment to job creation.

The CEO said through the collaboration with SMEDAN, the CAC will waive all statutory fees and ensure a seamless registration process that enables beneficiaries to receive their certificates without delay.

“SMEDAN will mobilise, prepare and profile eligible businesses, providing them with unique identification numbers,” he said.

“Both organizations will jointly promote awareness, monitor progress and share data responsibly to guarantee transparency and measurable impact.

“Formalising a business is more than obtaining a certificate. It provides entrepreneurs with a legal identity, improves access to finance and markets, enhances record-keeping and strengthens compliance with tax and regulatory obligations.

“For government, it expands the tax base, improves policy design and reflects the true size and contribution of our MSME sector.

“By formalising an additional 250,000 enterprises under this initiative, we are helping to create jobs, foster innovation and build a more inclusive economy.”

Magaji commended SMEDAN’s leadership, the federal ministry of industry, trade and investment, and all stakeholders for making the initiative possible, while lauding President Bola Tinubu for his commitment to Nigerian entrepreneurs.

‘CAC NOT AN AVENUE TO TAX SMALL BUSINESSES’

Also speaking, Charles Odii, SMEDAN director-general (DG), clarified that the CAC registration is not a tax grab for small businesses, noting the new tax laws exempts businesses earning under N50 million from company income tax (CIT).

Odii said the agency is registering MSMEs with the CAC because businesses need registration to operate legally.

“There are disturbing statistics that show that three in every five businesses, you know, die in the first five years,” he said.

“One of the reasons why small businesses fail in Nigeria is because they’re not structured. The number one step to structure your business is registering with CAC. And we are so excited.”

Odii disclosed plans to hold physical forums in various Nigerian regions over the next three months to reach rural communities and facilitate registrations, complementing online efforts.

The DG said three more business clinics will hold this year in Katsina, Lagos, and the FCT, where businesses will be registered, with Vice-President Kashim Shettima scheduled to attend the Katsina event.