FG Grants N3 Billion Waiver to MSMEs, Invites Small Business Owners to Register For Free
- The Nigerian government waives ₦3 billion in business name registration fees for MSMEs to enhance formalisation
- Daily filings for business registrations surged from a few hundred to nearly 10,000 amid the new initiative
- Over 60,000 MSMEs have already registered, unlocking crucial access to funding and growth opportunities
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s small business landscape is experiencing a dramatic transformation following the Federal Government’s ₦3 billion waiver on business name registration fees for micro, small and medium enterprises (MSMEs).
Since the initiative was introduced, daily filings at the Corporate Affairs Commission have surged from a few hundred to nearly 10,000 applications, marking an estimated 2,000 per cent increase.
Source: Twitter
What was once a slow administrative process has evolved into a digital-driven mass formalisation effort, reshaping the country’s enterprise ecosystem.
The programme, implemented in collaboration with the Small and Medium Enterprises Development Agency of Nigeria, aims to formalise up to one million MSMEs nationwide.
The first phase covers 250,000 free business name registrations, with additional batches scheduled until the one-million target is achieved.
A strategic shift toward formalisation
At its core, the waiver represents a calculated policy shift. Rather than prioritising short-term revenue, the government is focusing on long-term economic expansion through broader formalisation.
Registrar-General of CAC, Hussaini Magaji, described the initiative as a structural investment in Nigeria’s enterprise base, according to a report by Leadership.
According to him, waiving registration fees removes a long-standing barrier that kept many small businesses in the informal sector.
By formalising their operations, entrepreneurs gain legitimacy, improved access to finance, and eligibility for government-backed opportunities.
Officials emphasise that the initial 250,000 registrations are only the first step in what is designed as a sustained national intervention.
AI powers the registration boom
The unprecedented spike in applications has forced a technological pivot. To manage the influx,
CAC has deployed artificial intelligence-powered systems capable of handling around 10,000 registrations daily while processing roughly 5,000 inquiries across email, call centres and digital platforms. a Punch report had said.
Manual systems, officials say, would have collapsed under the current volume.
Digitisation has shortened turnaround times and simplified procedures, especially for nano and micro enterprises registering for the first time.
The registration surge is unfolding on two tracks. One is market-driven, as entrepreneurs formalise to access banking services and comply with tax reforms.
The other is policy-driven, anchored by the CAC-SMEDAN free registration scheme. Importantly, the 10,000 daily filings reflect broader reforms and digital awareness beyond just beneficiaries of the waiver.
60,000 MSMEs already onboarded
SMEDAN disclosed that about 60,000 MSMEs have already benefited from the free registration initiative, with participation spanning all 36 states and the Federal Capital Territory.
Director-General Charles Odii described formalisation as the gateway to grants, training, financing and market access.
Once registered and captured in SMEDAN’s database, businesses become eligible for after-care support and targeted growth programmes.
To ensure inclusivity, the agency provides physical onboarding assistance through state offices and business clinics.
Entrepreneurs unfamiliar with digital platforms receive hands-on support, including help with documentation such as National Identification Numbers.
Experts: Formalisation strengthens financial inclusion
Policy and financial inclusion experts say the rapid growth in registrations is improving enterprise visibility. With better data profiling, banks, fintech firms and development finance institutions can design tailored credit products for previously invisible businesses.
Financial inclusion analyst Douglas Michael noted that verifiable business identities reduce lending risks and lower the cost of credit.
Source: Getty Images
MSME specialist Dr Fredrick Ijere added that improved enterprise data allows policymakers to move from broad interventions to targeted grants and structured financing.
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has repeatedly framed the broader reforms as pro-growth rather than punitive, stressing that small businesses are meant to benefit, not be burdened.
Entrepreneurs feel immediate impact
For many business owners, the benefits are already tangible. From access to bank accounts and websites to increased customer trust, formal registration is changing perceptions and unlocking opportunities.
With ₦3 billion committed, AI-enabled processing in place, and a phased rollout targeting one million MSMEs, analysts expect elevated registration levels to continue.
The initiative signals a clear strategy: expand the tax base through growth, strengthen productivity, and gradually integrate Nigeria’s vast informal sector into a more structured, opportunity-driven economy.
CAC Removes 400,000+ Non-compliant Firms
Legit.ng earlier reported that the Corporate Affairs Commission (CAC) has removed more than 400,000 companies from Nigeria’s official business register over issues of inactivity and non-compliance during 2025.
This disclosure was made by the Registrar-General of the commission, Hussaini Magaji, while addressing participants at a “Celebration Walk” organised by the CAC on Saturday in Abuja, according to the News Agency of Nigeria (NAN).
Magaji explained that the mass delisting was part of a deliberate effort to sanitise the commission’s database and ensure that only active, law-abiding entities remain on the national register.
Source: Legit.ng
