SMEDAN: Registering 250,000 New Businesses, Its Impact on Small Business Owners in Nigeria

This initiative, announced in late September 2025, aims to formalize informal businesses across the country’s 36 states and the Federal Capital Territory (FCT), waiving registration fees estimated at ₦3 billion in total.

For small business owners struggling with bureaucratic hurdles and costs, this could be a transformative opportunity. But how exactly will SMEDAN achieve this, and what does it mean for entrepreneurs on the ground? Let’s break it down.

The partnership between SMEDAN and CAC streamlines the business registration process, making it accessible and cost-free for eligible MSMEs. Typically, registering a business with the CAC involves a fee of around ₦11,000, which can be a barrier for many startups and informal operators.

Under this program, that cost is entirely waived for the first 250,000 applicants, regardless of any future fee adjustments.

The registration drive is designed to be straightforward and digital, encouraging widespread participation. Here’s how it works:

Application Process: Interested business owners must visit the official SMEDAN portal at portal.smedan.gov.ng.

 They need to sign up, create an account, and complete the registration form with basic details about their business, such as name, type, location, and owner information.

Eligibility and Scope: The initiative targets new or unregistered MSMEs, including sole proprietorships, partnerships, and limited liability companies. It’s open nationwide, ensuring equitable distribution across states to support rural and urban entrepreneurs alike.

Timeline and Rollout: Launched on September 27, 2025, the program is expected to run until the quota of 250,000 registrations is met.

Support Mechanisms: To facilitate the process, SMEDAN will provide guidance through helplines, webinars, or local offices. The goal is not just registration but also to educate owners on compliance and growth strategies.

This collaborative effort builds on previous SMEDAN programs aimed at empowering MSMEs, which contribute over 50% to Nigeria’s GDP and employ millions. By removing financial barriers, the agencies hope to bring more businesses into the formal economy, fostering transparency and accountability.

For small business owners in Nigeria, ranging from street vendors and artisans to tech startups, this initiative represents more than just a free registration; it’s a gateway to legitimacy and growth. Here’s a closer look at the implications:

Financial Relief and Accessibility: The waived ₦11,000 fee directly saves money for cash-strapped entrepreneurs, especially in an economy grappling with inflation and high operational costs.

Access to Funding and Support: Formal registration is often a prerequisite for accessing loans, grants, and government incentives. Registered businesses can tap into programs like the Central Bank of Nigeria’s intervention funds, SMEDAN’s matching grants, or international aid. It also improves creditworthiness, making it easier to secure bank loans or investor capital.

Enhanced Credibility and Market Opportunities: A CAC-registered business gains trust from customers, suppliers, and partners. This formal status can open doors to contracts, tenders, and e-commerce platforms that require verified entities. For instance, owners can now participate in government procurement processes or export opportunities more seamlessly.

Legal Protection and Compliance: Registration provides legal safeguards, such as limited liability for company owners, protecting personal assets from business debts. It also ensures compliance with tax and regulatory requirements, reducing the risk of fines or shutdowns. In the long term, this promotes sustainable business practices.

Broader Economic Impact: On a macro level, formalizing 250,000 businesses could boost tax revenues, create jobs, and stimulate innovation.

 For owners, it means being part of a supported ecosystem, with potential for training, networking, and market linkages through SMEDAN’s resources.

However, challenges remain. Not all owners may have internet access or the know-how to navigate the portal, potentially excluding those in remote areas. SMEDAN has urged stakeholders to spread awareness, and partnerships with local organizations could help bridge this gap.

SMEDAN’s ambitious target of registering 250,000 new businesses highlights the government’s commitment to inclusive economic development. As Nigeria pushes toward diversification beyond oil, empowering small businesses is key to achieving sustainable growth. For aspiring and existing entrepreneurs, this is a call to action: seize the opportunity to formalize and thrive.If you’re a small business owner, head to the SMEDAN portal today, spots are filling up fast. This initiative isn’t just about numbers; it’s about unlocking potential and building a resilient economy, one registration at a time.