SMEDAN Opens Portal For Free Business Registration, Targets 250,000 Entrepreneurs
- Nigeria's SMEs dominate the economy but face challenges operating informally, limiting access to vital resources
- The Federal Government's free business registration initiative aims to formalise millions of SMEs, enhancing economic inclusion
- Formalisation unlocks growth opportunities, improves job security, and potentially transforms Nigeria's economic landscape by 2026
Nigeria’s micro, small and medium enterprises are at the heart of the economy, yet millions still operate outside the formal system.
With SMEs accounting for nearly 96% of registered businesses and contributing significantly to GDP and employment, the Federal Government’s free business registration initiative is emerging as a game-changer with far-reaching economic implications.
Source: Getty Images
More than a bureaucratic gesture, the policy signals a deliberate shift toward economic inclusion, data-driven planning, and long-term growth.
SMEs: The backbone of the economy
Past reports consistently show that SMEs dominate Nigeria’s business landscape.
They power local economies, absorb a large share of the workforce, and drive innovation at the grassroots level.
From neighbourhood retailers and artisans to small manufacturers and service providers, these enterprises keep the economy moving.
However, a significant number of them operate informally, limiting their access to finance, government support, and structured markets.
This informality has also made it difficult for policymakers to capture accurate data on economic activity, weakening planning and fiscal efficiency.
Why does free registration matter?
The free registration drive directly tackles one of the biggest barriers facing small businesses: cost and complexity.
For many entrepreneurs, formal registration has long been seen as expensive, stressful, and unnecessary for survival. Removing the cost element changes that perception.
By lowering the entry barrier, the initiative encourages millions of informal enterprises to step into the formal economy.
This expands official business records, strengthens regulatory oversight, and creates a more transparent economic environment.
For the government, it means better data to guide policy, infrastructure planning, and targeted interventions.
According to a report by Techeconomy, for investors, it improves confidence and visibility, making Nigeria’s SME sector more attractive for both local and foreign capital.
Unlocking growth and inclusion
Formalisation brings tangible benefits to entrepreneurs. Registered businesses are better positioned to access bank loans, grants, and credit schemes.
They can participate in government procurement, attract partnerships, and scale operations beyond subsistence levels.
Beyond finance, formalisation also improves job security and worker protections, helping to strengthen Nigeria’s labour market.
As more businesses become visible, economic inclusion deepens, and growth becomes broader-based rather than concentrated.
Implications for GDP and employment
With SMEs already contributing significantly to GDP, bringing millions more into the formal space could unlock fresh economic momentum.
Analysts believe that a wider tax base, even at modest levels, would improve government revenue without overburdening existing taxpayers.
More importantly, stronger SMEs translate into job creation, improved productivity, and increased household incomes.
Over time, this can help reduce poverty and stabilise local economies across states and regions.
Looking ahead to 2026 and beyond
Analysts say the free registration initiative could redefine Nigeria’s business landscape, shifting entrepreneurs from informal survival to sustainable growth and competitiveness.
Combined with broader reforms, digital-friendly systems, and ongoing policy reviews, MSME formalisation may become a cornerstone of Nigeria’s economic resurgence.
Source: UGC
As 2026 approaches, the success of this drive will depend on consistency, awareness, and complementary support such as access to finance, digital tools, and capacity building.
If sustained, the policy could mark a turning point, transforming small businesses into a powerful engine for inclusive and resilient economic growth.
CAC announces new deadline for all POS operators registration
Legit.ng previously reported that the Corporate Affairs Commission (CAC) has issued a new compliance deadline for the registration of all Point of Sale (PoS) operators in Nigeria, setting January 1, 2026, as the enforcement date for mandatory CAC registration across the country
The move, the Commission said, is aimed at sanitising Nigeria’s rapidly expanding PoS sector and curbing risks associated with unregistered operators.
In a notice endorsed by its management, the CAC raised alarms over the growing presence of PoS operators running without registration in breach of Companies and Allied Matters Act (CAMA) 2020 and CBN agent banking rules.
Source: Legit.ng
