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Nigeria’s business landscape is buzzing with micro, small, and medium enterprises (MSMEs). These businesses create jobs and spark innovation, but a lot of them operate informally because the registration process can feel expensive or confusing. 

In fact, the Corporate Affairs Commission (CAC) typically charges about ₦ 11,000 to register a business name. To help take this burden off entrepreneurs, the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) teamed up with the CAC in September 2025 to offer free CAC registration to 250,000 MSMEs. 

FBA Nabena & Co. is a full-service law firm with 26 years of experience helping entrepreneurs and business corporations complete their registrations accurately. In this guide, we’ll walk through what the initiative is all about, who can benefit, and how you can sign up.

Why the Government Is Offering Free CAC Registration

Formalisation improves access to financing and markets

It’s common for entrepreneurs to stay informal because of cost, bureaucracy, or simply not knowing where to start. 

But staying off the books can hold you back; banks may not open corporate accounts, lenders might decline loans, and it can be harder to join big supply chains. Registering your business gives you credibility and opens doors to investors or partners. 

The free CAC registration programme is therefore about more than just saving money; it’s a way to help entrepreneurs join the formal economy and unlock new opportunities.

Part of the Renewed Hope Agenda

The free CAC registration drive falls under President Bola Ahmed Tinubu’s Renewed Hope Agenda. 

In late September 2025, the CAC and SMEDAN signed a Memorandum of Understanding in Abuja to deliver 250,000 free business name registrations. SMEDAN describes the partnership as an effort to “break down barriers for entrepreneurs” by taking away registration costs. 

The programme fits neatly into broader goals of innovation, job creation, and inclusive growth.

Significant cost savings for MSMEs

A business‑name registration normally costs about ₦ 11,000; not a small sum for nano and micro enterprises. By waiving fees for 250,000 businesses, the CAC is letting go of roughly ₦3 billion in revenue, according to Businessday.ng. 

That’s a big statement of support from the government to help entrepreneurs formalise without the usual financial hurdle.

Access to additional support and aftercare

There’s more to this programme than free paperwork. Once you sign up, your business gets listed in SMEDAN’s MSME database, opening the door to ongoing support. That includes grants, training, technical help, and even introductions to new markets.

SMEDAN’s Director‑General calls formalisation “the gateway to support” because it helps the agency match businesses with the right opportunities.

Removing fear of taxation and other barriers

Are you worried that registering will attract taxes you can’t afford? Reforms to Nigeria’s tax framework starting in 2026 raise the exemption threshold, so the smallest businesses won’t be overburdened. 

According to SMEDAN, combining these tax reforms with free CAC registration helps bring the Renewed Hope Agenda to life

Who Qualifies for the Free CAC Registration?

So who qualifies for free CAC registration? Here’s everything you need to know about meeting the criteria.

Targeted Enterprises

The free registration initiative is designed for nano, micro, and small enterprises. It applies to businesses across Nigeria’s 36 states and the Federal Capital Territory. 

According to the CAC, 250,000 business‑name registrations will be executed in collaboration with SMEDAN.

Criteria and eligibility

1. Enterprises not previously registered with the CAC. The programme covers business names that have not yet been registered. MSMEs already in the SMEDAN database but without CAC certification automatically qualify.
   
2. Registration on the SMEDAN portal. Eligible businesses must register with SMEDAN to obtain a SMEDAN Unique Identification Number (SUIN). During the MoU signing, the CAC Registrar‑General explained that SMEDAN will mobilise, prepare, and profile eligible businesses, meaning it will verify applicants’ details and issue SUINs.
   
3. Commitment to formal operations. The programme targets genuine businesses that seek to operate formally and access government support. Both agencies emphasised that the scheme is part of a larger effort to formalise the MSME sector and encourage compliance with regulatory requirements.
   

Who is Not Eligible?

The programme only covers business‑name registrations (not limited liability companies or incorporated trustees). The free slots are limited to 250,000 businesses and will likely be allocated on a first‑come‑first‑served basis according to Postimes.ng. 

Businesses that already have a CAC registration number do not need to apply.

How to Apply for the Free CAC Registration

The CAC and SMEDAN designed a straightforward application process. The steps below summarise official instructions contained in the programme announcements.

1. Visit the SMEDAN portal – go to portal.smedan.gov.ng and complete the registration form. Applicants will need basic information about their business, such as its name, address, owner details, and sector. You will also need to provide your NIN. Registering on the SMEDAN portal provides a unique SMEDAN identification number (SUIN) and enrolls the enterprise in the national MSME database.
   
2. Automatic qualification for existing SMEDAN members – MSMEs already on SMEDAN’s database who do not yet have CAC certificates will automatically qualify for the free registration drive. They should ensure that their contact details on the portal are up to date.
   
3. Await further instructions – after completing the SMEDAN registration, applicants will be contacted with the next steps for CAC certification. The CAC has committed to waiving all statutory fees and ensuring a seamless registration process so that beneficiaries receive their certificates promptly.
   

Where To Get Help

SMEDAN recognises that some entrepreneurs are “not digital natives.” For such applicants, SMEDAN State Offices and Business Clinic events nationwide will provide support to help entrepreneurs register. 

These physical support centres ensure that the free registration initiative is inclusive and accessible to business owners who may not have reliable internet access or technical skills.

What Does Free CAC Registration Provide?

Free CAC registration is a government initiative designed to help small businesses formalise easily by removing costs and simplifying the process. It opens the door for entrepreneurs to access support, funding, and broader opportunities through CAC and SMEDAN.

Waiving statutory fees and reducing bureaucracy

During the launch, the CAC Registrar‑General reiterated that all statutory fees will be waived. This means that the usual costs associated with business‑name registration are eliminated. The commission also promised a seamless process that allows beneficiaries to receive certificates quickly.

Integration into the SMEDAN database

Once registered, businesses will be entered into SMEDAN’s database. The agency will assign a unique SUIN and provide aftercare such as access to grants, capacity‑building programmes, technical support, and market linkages. SMEDAN will also profile each enterprise to understand its needs and match it with relevant opportunities.

Data sharing and transparency

The MoU stipulates that SMEDAN and the CAC will jointly promote awareness, monitor progress and share data responsibly. This collaborative approach ensures transparency in how the free slots are allocated and allows both agencies to measure the initiative’s impact.

Part of a broader support ecosystem

The free business registration drive is one component of a broader MSME support ecosystem under the Renewed Hope Agenda. The CAC Registrar‑General highlighted reforms such as a N200 billion economic assistance programme for nano businesses, SMEs, and manufacturers. 

By formalising their operations, eligible businesses position themselves to benefit from such programmes.

Benefits of Formalising Your Business Now

1. Enhanced credibility and legitimacy – formal registration signals that your business is serious and trustworthy. This can attract customers, partners and lenders. SMEDAN explains that formalisation provides “improved credibility, access to government interventions and opportunities to scale in both local and international markets.”
   
2. Access to financing and government schemes – many banks and investors require evidence of registration. By joining SMEDAN’s database through the free scheme, businesses can access grants, capacity‑building programmes, technical support and market linkages.
   
3. Simplified tax and regulatory compliance – the new tax framework increasing exemption thresholds reduces the tax burden on small businesses. Formalising now allows you to understand and take advantage of these reforms.
   
4. Long‑term growth prospects – the registration initiative aims to help businesses grow, create jobs and participate in larger supply chains. The CAC emphasised that removing registration costs enables entrepreneurs to take the “first step toward growth, legitimacy and access to bigger opportunities.”
   

Tips for a Successful Application

• Prepare your business information – gather the proposed business name, owner’s full name, contact details, and business address. Ensure the name complies with CAC guidelines (avoid names identical to existing businesses or containing restricted words).
  
• Register early – the free slots are limited to 250,000 businesses, so apply as soon as possible.
  
• Keep your contact details up to date – after registering with SMEDAN, ensure your email address and phone number are correct. All communication about the free registration will be sent via the contact information provided.
  
• Attend a Business Clinic if needed – if you encounter difficulties or lack internet access, visit a SMEDAN State Office or Business Clinic to receive in‑person assistance.
  
• Beware of fraud – the official registration portal is portal.smedan.gov.ng. Avoid third parties who promise registration in exchange for money.
  

Next Steps

You now know that the free CAC registration programme exists, why it matters, and how to apply. To progress to the next stage, consider the following actions:

1. Explore the standard CAC registration process. The free CAC registration programme is limited to business‑name registrations. For other business structures or if you miss the free slots, learn about the regular process and timelines by reading our detailed guide on CAC registration in Nigeria.
   
2. Compare costs. Although the free programme waives fees, understanding standard charges can help you plan for future expansions (e.g., converting to a company). See our breakdown of CAC registration fees for different entity types.
   
3. Seek professional advice. For complex transactions such as partnerships, shareholding agreements, or corporate restructuring, professional counsel ensures compliance. Our corporate and commercial services page outlines the support we offer to growing businesses.

By taking advantage of the free CAC registration initiative, Nigerian entrepreneurs can formalise, gain access to support programmes, and position themselves for growth. If you are eligible, register via SMEDAN’s portal today; opportunities abound for MSMEs that take this critical step towards legitimacy and expansion.

Contact FBA Nabena & Co. today for a consultation or reach us via a call at +234 807-201-3078. We’re here to help business owners like you succeed, starting with getting your company properly registered and compliant with all legal requirements.