Federal Government Grants N3 Billion Waiver to MSMEs, Invites Small Business Owners to Register For Free
The Nigerian Federal Government has implemented a groundbreaking initiative, waiving a substantial N3 billion in business name registration fees for micro, small, and medium enterprises (MSMEs). This strategic move aims to accelerate the formalisation of the nation's vast informal sector, with small business owners now invited to register their enterprises completely free of charge.
Unprecedented Surge in Business Registrations
Since the introduction of this transformative programme, daily business registration filings at the Corporate Affairs Commission have experienced an extraordinary increase. What was previously a slow administrative process involving only a few hundred applications daily has now exploded to nearly 10,000 daily filings, representing an estimated 2,000 percent surge in registration activity.
Registrar General of the Corporate Affairs Commission, Hassan Magaji, has confirmed that over 60,000 MSMEs have already successfully registered under this initiative. This remarkable uptake demonstrates the pent-up demand for formal business recognition among Nigeria's entrepreneurial community.
Strategic Economic Formalisation Initiative
The programme represents a calculated policy shift by the Federal Government, implemented in collaboration with the Small and Medium Enterprises Development Agency of Nigeria. Rather than prioritising short-term revenue collection, the government is focusing on long-term economic expansion through broader formalisation of the business landscape.
Registrar-General Hussaini Magaji has described this initiative as a structural investment in Nigeria's enterprise foundation. According to his statements, waiving registration fees removes a significant barrier that has historically kept countless small businesses operating in the informal sector, unable to access formal financial systems and government support programmes.
Technological Infrastructure Supports Registration Boom
The unprecedented spike in registration applications has necessitated a technological transformation at the Corporate Affairs Commission. To manage the massive influx, CAC has deployed artificial intelligence-powered systems capable of processing approximately 10,000 registrations daily while simultaneously handling around 5,000 inquiries across multiple communication channels including email, call centres, and digital platforms.
Officials have acknowledged that traditional manual systems would have completely collapsed under the current volume of applications. The digital transformation has significantly shortened processing times and simplified registration procedures, particularly benefiting nano and micro enterprises registering for the first time.
Comprehensive Benefits for Registered Businesses
SMEDAN Director-General Charles Odii has emphasised that formalisation serves as the essential gateway to numerous benefits for small businesses. Once registered and captured in SMEDAN's comprehensive database, businesses become eligible for grants, specialised training programmes, financing opportunities, and enhanced market access.
The agency has implemented inclusive measures to ensure broad participation, providing physical onboarding assistance through state offices and business clinics. Entrepreneurs unfamiliar with digital platforms receive hands-on support, including assistance with essential documentation such as National Identification Numbers.
Expert Analysis on Economic Impact
Policy and financial inclusion experts have highlighted how the rapid growth in business registrations is improving enterprise visibility throughout the Nigerian economy. With better data profiling of registered businesses, financial institutions including banks, fintech companies, and development finance organisations can design tailored credit products specifically for previously undocumented enterprises.
Financial inclusion analyst Douglas Michael has noted that verifiable business identities significantly reduce lending risks and consequently lower the cost of credit for small businesses. MSME specialist Dr. Fredrick Ijere has added that improved enterprise data enables policymakers to transition from broad interventions to targeted grants and structured financing programmes.
Phased Implementation and Future Targets
The current initiative represents only the first phase of a comprehensive national intervention. The initial phase covers 250,000 free business name registrations, with additional batches scheduled until the programme achieves its ambitious target of formalising one million MSMEs nationwide.
With N3 billion already committed to this initiative, AI-enabled processing systems fully operational, and a carefully planned phased rollout targeting one million MSMEs, economic analysts anticipate that elevated registration levels will continue throughout the implementation period.
Complementary Regulatory Actions
In a related development, the Corporate Affairs Commission has recently removed more than 400,000 companies from Nigeria's official business register due to issues of inactivity and non-compliance during 2025. Registrar-General Hussaini Magaji explained that this mass delisting forms part of a deliberate effort to sanitise the commission's database and ensure that only active, law-abiding entities remain on the national business register.
This dual approach of encouraging formalisation while maintaining regulatory standards represents a comprehensive strategy to strengthen Nigeria's business ecosystem, expand the national tax base through sustainable growth, and gradually integrate the country's vast informal sector into a more structured, opportunity-driven economy.
