Free CAC Registration 2025

The Federal Government of Nigeria, in a major push to formalise the nation’s vast informal sector, has launched a collaborative scheme offering Free CAC Registration for over 250,000 Micro, Small, and Medium Enterprises (MSMEs) nationwide.

This landmark initiative, a joint effort between the Corporate Affairs Commission (CAC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), is designed to break down the primary barriers of cost and bureaucracy that have historically hindered small businesses from achieving formal status.

The Cost of Informality: A $3 Billion Investment

The collaboration was sealed with the signing of a Memorandum of Understanding (MoU) in Abuja. According to the Registrar-General/CEO of the CAC, Hussaini Ishaq Magaji (SAN), the Commission is set to waive all statutory fees for the 250,000 business names, an investment estimated to be worth approximately ₦3 billion in foregone revenue.

This financial sacrifice underscores the government’s commitment, under the Renewed Hope Agenda of President Bola Ahmed Tinubu, to foster an enabling environment for grassroots enterprises.

“This drive is about breaking down the barriers that keep too many of our small businesses informal. By removing the cost of business name registration… we are helping more entrepreneurs take the first step towards growth, legitimacy, and access to bigger opportunities.”
Hussaini Ishaq Magaji (SAN), CAC Registrar-General

Why Formalisation is Your Growth Strategy

For years, millions of Nigerian entrepreneurs have operated outside the formal economy, limiting their access to critical growth opportunities. By acquiring a legally registered business name from the CAC, MSMEs can immediately access:

1. Access to Finance: Formal businesses are prioritized for government-backed loans, grants (like the Presidential Conditional Grant Scheme), and funding from financial institutions.
2. Government Support: Registration is the essential first step to being onboarded into the SMEDAN database, which grants access to aftercare services, technical support, and capacity-building programs.
3. Market Linkages: A CAC certificate enhances legitimacy, making it easier to secure contracts, partner with larger corporations, and access international markets like the African Continental Free Trade Area (AfCFTA).
4. Tax Clarity: The SMEDAN Director-General, Charles Odii, clarified that concerns about excessive taxation are being addressed. The new tax framework taking effect in 2026 is expected to raise exemption thresholds for small businesses, ensuring that formalisation does not become a tax burden.

How to Qualify and Apply for the Free Business Registration

The application process has been streamlined through the SMEDAN platform, ensuring transparency and ease of access for eligible nano, micro, and small enterprises.

1. Confirm eligibility
   You must be operating as a nano, micro, or small enterprise that currently lacks CAC business registration.
2. Register through SMEDAN’s portal
   Go to the SMEDAN website (portal.smedan.gov.ng) and fill out the required registration forms. Ensure you provide accurate business name, activity, location, and contact information.
3. Get assistance if needed
   For those unfamiliar with online registration, SMEDAN’s state offices and business clinics will provide in-person support.
4. Onboarding into the MSME database
   Once registered, your business is entered into SMEDAN’s official MSME database, which unlocks benefits like capacity building, grants, market linkages, etc.

A Pledge to the MSME Ecosystem

The free registration drive is more than a momentary relief; it is a strategic step towards reducing the high failure rate of small businesses in Nigeria and accelerating job creation.

The initiative has been praised by both the CAC and SMEDAN leadership as a practical and meaningful commitment to the Renewed Hope vision, encouraging every small business owner to seize this historic opportunity and take the definitive step towards formal growth and economic sustainability.