Abuja: The Corporate Affairs Commission (CAC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have strengthened their partnership to facilitate business registration for small business owners across Nigeria. This development aims to streamline the registration process and target the formalization of 250,000 Micro, Small and Medium Enterprises (MSMEs) in the country.
According to News Agency of Nigeria, the Registrar-General of CAC, Mr. Hussaini Magaji, announced this initiative during the signing of a Memorandum of Understanding (MoU) between the two organizations in Abuja. The agreement sets the framework for free registration of MSMEs, eliminating cost barriers by waiving all statutory fees under the Renewed Hope Agenda of President Bola Tinubu's administration.
Magaji highlighted the importance of formalizing businesses, stating that it provides entrepreneurs with a legal identity, improves access to finance and markets, and strengthens compliance with tax and regulatory obligations. This initiative is expected to expand the tax base and enhance policy design, contributing significantly to Nigeria's MSME sector by creating jobs, fostering innovation, and building a more inclusive economy.
He urged MSMEs to seize this opportunity to formalize their businesses and become part of Nigeria's growth story, while also calling on the media to help spread the word to ensure deserving entrepreneurs are not left behind.
On the other hand, the Director-General of SMEDAN, Charles Odii, praised the initiative as a significant milestone for small businesses and a 'big win' for the current administration. SMEDAN plans to mobilize, profile, and guide eligible businesses for registration through its online portal, effectively eliminating the role of middlemen who previously inflated registration costs.
Odii noted that this initiative complements the President's N200 billion economic assistance program, which provides significant financial support for nano businesses, SMEs, and manufacturers. He emphasized that the MoU is timely, given CAC's upcoming fee review, ensuring 250,000 businesses benefit from free registration before the changes take effect.
The SMEDAN director-general also highlighted the need for business registration as a step towards building resilient enterprises, noting that many businesses fail within their first five years due to a lack of structure. Beyond registration, SMEDAN will continue to support entrepreneurs through business clinics, advisory services, and collaborations with other agencies, including the Standards Organisation of Nigeria (SON) and the Nigerian Export Promotion Council (NEPC).
Odii commended the President's decision to raise the tax exemption threshold for small businesses, reducing the burden on enterprises and encouraging compliance. He expressed gratitude to the Registrar-General of CAC, the Federal Ministry of Industry, Trade and Investment, and the Chief of Staff to the President for their support in realizing this initiative.