The Federal Government has officially opened applications for the free registration of 250,000 Micro, Small and Medium Enterprises (MSMEs), giving thousands of Nigerian entrepreneurs a rare opportunity to formalise their businesses at no cost.
Initiative Details and Rationale
The initiative, being implemented through the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) in partnership with the Corporate Affairs Commission (CAC), is aimed at eliminating one of the biggest financial hurdles faced by small business owners: the cost of business registration. Approved by President Bola Tinubu, the programme will see the Federal Government pay the statutory CAC Business Name registration fees for successful applicants, allowing eligible nano, micro and small businesses to become legally recognised without spending a kobo, according to a report by Punch.
Formal registration is a major requirement for businesses seeking access to government grants, loans, contracts, banking services and investment opportunities. However, many small businesses remain unregistered because of the costs involved. With this intervention, the Federal Government hopes to encourage more entrepreneurs to join Nigeria's formal economy, improve business credibility and create pathways to long-term growth.
Launch and Additional Support
The initiative was unveiled by the Presidency during the 8th National MSME Awards held at the State House in Abuja on June 27, 2026. Beyond free CAC registration, beneficiaries will also receive business development support, technical training and other capacity-building opportunities designed to help them grow sustainable enterprises.
The programme targets nano, micro and small businesses that are yet to register with the Corporate Affairs Commission. However, entrepreneurs who are already registered on the SMEDAN database but do not have a CAC registration may also qualify automatically, provided they meet the programme's requirements. The initiative is expected to benefit businesses operating across different sectors of the Nigerian economy, from retail and agriculture to manufacturing, technology and creative enterprises.
How to Apply for Free CAC Registration
Business owners interested in the programme can apply through the official SMEDAN portal by following these steps:
- Visit the SMEDAN registration portal.
- Create an account using your full name, email address, phone number and a password.
- Complete the MSME registration form with accurate business information.
- When asked whether your business already has a CAC registration number, select "No."
- Review all the information provided before submitting your application.
- Wait for notification from SMEDAN if your application is successful.
Applicants selected under the programme will receive further instructions on completing their free Business Name registration with the Corporate Affairs Commission.
Wider Business Formalisation Drive
The programme follows a Memorandum of Understanding signed between SMEDAN and the Corporate Affairs Commission to formalise 250,000 businesses nationwide. According to the Presidency, President Tinubu approved the initiative in 2026 as part of broader efforts to reduce barriers facing small businesses and increase their participation in Nigeria's formal financial and regulatory system.
By removing registration costs, the government believes more entrepreneurs will be able to access financing, expand their operations, improve compliance and contribute more effectively to economic growth. With applications now open, eligible business owners are being encouraged to complete their registrations early, as only 250,000 businesses will benefit from the free CAC registration scheme.
Previous Related Initiative
Legit.ng earlier reported that the CAC has announced a fresh initiative aimed at easing the burden on small business owners across Nigeria. Under the new programme, 3,500 small enterprises will enjoy free business name registration, covering all 36 states and the Federal Capital Territory. The announcement was made by the Registrar-General of the commission, Hussaini Magaji, via the agency’s official X handle.
