₦6,000,000,000 divided by 250,000 businesses equals ₦24,000 for each business. It’s the math behind one of Nigeria’s largest youth entrepreneurship initiatives in years. The Corporate Affairs Commission (CAC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) are working together to invest ₦6 billion in the economy. They will help 250,000 young Nigerians register their businesses for free.
This is about so much more than a certificate. That registration is the key that unlocks a corporate bank account, makes a business eligible for loans, and gives it the credibility to bid for real contracts. It’s a strategic move to bring Nigeria’s massive, vibrant ‘hustle’ economy out of the shadows and into the formal system, where it can truly grow.
Why This Matters
What does “free registration” really give you? It gives legitimacy. It gives access.
- It means a Content Creator or Social Media Manager can now have a recognised business name.
- That opens doors: bank accounts, grants, loans, partnerships, contracts.
- It helps move them from informal situations into formal systems where they can receive public support and oversight.
By removing a barrier (registration cost), CAC and SMEDAN are trying to turn thousands of side hustles into real businesses. Over time, that ripple could be meaningful for jobs, tax base, and inclusive growth.
Registrar-General Hussaini Ishaq Magaji, SAN, made this point clear when he addressed student groups in Kaduna: he described the move as “injecting ₦6 billion into the economy.” He urged youth to leverage the free registration window as part of efforts to curb unemployment. According to him, the initiative leans heavily on technology: CAC has introduced an AI agent to clear a backlog of ~7,000 pending applications and speed up compliance, registry, and customer-service tasks.
The 5 Big Problems This Free Offer Is Trying to Solve
- Registration cost and complexity: Usually, registering a name with CAC has a fee (roughly ₦10,000), an amount some small businesses can’t afford.
- Informal vs formal trade: Many microbusinesses remain unregistered, operating without bank records, without access to government programs or tenders, and vulnerable to disruption.
- Bureaucratic delays & backlog: Even people ready to register face long delays. That’s why the CAC is introducing AI assistance. This new system will process emails, find duplicate requests, reroute inquiries, and ultimately reduce waiting times.
- Technical issues: The new AI-driven portal is encountering technical problems. It is not flawless yet. Users have reported logjams involving payment issues, submission errors, and slowdowns for services not included in the initial rollout.
- Trust, Awareness, Reach: A free registration campaign won’t matter if youth and micro-entrepreneurs don’t know or distrust it. SMEDAN is already holding Business Clinics to clarify guidelines, answer questions, and bring CAC officials face-to-face with entrepreneurs.
Imagine “Ada,” a 22-year-old content creator in Enugu. She posts designs on social media, gets paid via PayPal, but can’t scale because clients ask for company names, invoices, and tax IDs. She has no access to bank credit, government support, or big gigs.
Within this window, Ada applies, gets her business name free, and builds credibility. She now qualifies for local grants, can pitch to bigger clients, and keeps better financial records. That shift, from side hustle to registered enterprise, changes her trajectory. Multiply Ada by tens of thousands across cities and states, and you start seeing something bigger: a youth business class emerging.
What to Watch / What Needs More Clarity
- Follow-through & implementation: Does CAC deliver? Are names approved quickly? Are youth actually reached in rural, remote zones?
- Post-registration support: Registration alone isn’t enough. Will these newly formalised businesses get mentoring, low-interest loans, and market access?
- Sustainability: The ₦6B covers the registration window. What happens after the window closes? Will fees come back, and will that stall growth again?
- Equity of access: Are young women, rural youth, and people without tech tools able to tap into this?
- Impact measurement: How many of these 250,000 will survive 1, 2, 3 years? Jobs created, revenue growth?
That ₦6 billion real hope for young Nigerians trying to build something meaningful in this tough economy. If the CAC and SMEDAN support this initiative with prompt approvals, digital tools, mentorship, and market access, it could transform into a significant movement for small businesses in Nigeria.
However, if it only results in paperwork, it might just become another forgotten headline. The ₦24,000 per business isn’t just some random fee but a serious investment based on the belief that Nigerian youth are out there actively creating their own opportunities.
