Federal Government Approves Free Registration for 250,000 MSMEs to Boost Economic Formalization
In a significant move to strengthen Nigeria's economic foundation, the Federal Government has authorized the free registration of 250,000 micro, small and medium enterprises (MSMEs) across the nation. This initiative, spearheaded by the Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) in collaboration with the Corporate Affairs Commission (CAC), aims to enhance business formalization, improve access to credit facilities, and support post-pandemic recovery for small-scale entrepreneurs.
Simplified Digital Registration Process
Dr. Charles Odii, the Director General of SMEDAN, announced this development during a stakeholder engagement in Abuja focused on Nigeria's new tax legislation. According to Odii, the registration process has been designed to be straightforward and entirely digital. Eligible business owners can now visit the SMEDAN website to complete their registration without incurring any costs. Once submitted, SMEDAN will forward the details to the CAC for official processing, ensuring a seamless and cost-free experience for applicants.
"SMEDAN has secured presidential approval for the registration of 250,000 businesses at no charge," Odii stated. "MSMEs simply need to access the SMEDAN website, register their business, and we will handle the rest with the CAC free of charge." This program is expected to alleviate one of the major obstacles faced by small enterprises: the financial and procedural complexities associated with formal registration.
Addressing Post-COVID Economic Challenges
Odii also provided updated statistics on Nigeria's SME sector, highlighting the severe impact of the COVID-19 pandemic. "Prior to the pandemic, Nigeria had approximately 41 million SMEs. After COVID, we lost around three million of these enterprises," he revealed. "Current data indicates that we now have 39,224,380 SMEs operating in the country." The free registration drive forms part of a broader strategy to rebuild and fortify this critical sector, which serves as the backbone of Nigeria's economy.
Enhanced Access to Finance and State Partnerships
Beyond registration, SMEDAN is actively working to improve financial access for small businesses. The agency is focusing on facilitating single-digit interest loans and grants to support business growth and sustainability. "We aim to enhance this initiative by improving access to credit, particularly through single-digit interest loans and grants," Odii emphasized.
Furthermore, SMEDAN has entered into memoranda of understanding with several state governments to extend MSME support at the subnational level. States such as Katsina, Anambra, and Zamfara are among those partnering with the agency to provide localized assistance and resources for entrepreneurs.
Supportive Tax Reforms for Business Growth
During the same event, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal and Tax Reforms, addressed the new tax laws designed to alleviate pressure on workers and businesses. "You cannot build a prosperous society without allowing businesses to thrive," Oyedele remarked. "The key to societal success lies in enabling our 35 million big, nano, micro, and small and medium businesses to expand and prosper."
He noted that under the current tax framework, 98 percent of low- and middle-income earners will experience reduced tax burdens. These reforms are intended to create a more conducive environment for business operations and economic growth.
Broader Economic Implications
The free business registration initiative is anticipated to bring a substantial number of enterprises into the formal economy, positioning them for sustainable development and increased access to financial services. By reducing barriers to entry and formalization, the government hopes to stimulate entrepreneurship, enhance job creation, and drive overall economic recovery in Nigeria.
This program represents a pivotal step in supporting the resilience and growth of Nigeria's MSME sector, which is essential for national economic stability and progress.
