CAC registration has always been one of those things small business owners in Nigeria plan to do “eventually.” The cost is not enormous but it is enough to keep getting pushed down the priority list, especially for someone running a small shop, a fashion brand on Instagram, or a POS point. That calculation changed in September 2025.
The federal government, through SMEDAN and the Corporate Affairs Commission, launched a programme to register 250,000 Nigerian businesses for free. No agent fees, no processing charges, no unofficial payments. The slots are limited and they will run out, but as of mid-2026, the programme is still open.
This article explains who qualifies, how to apply, what the process involves, and what options exist if you miss the free registration window.
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What Is the Free CAC Business Name Registration Programme?
The Corporate Affairs Commission and the Small and Medium Enterprises Development Agency of Nigeria jointly unveiled a nationwide scheme to provide free business registration for 250,000 nano, micro, and small enterprises. The programme was announced in Abuja following the signing of a Memorandum of Understanding between both agencies.
A business name registration normally costs about ₦11,000. By waiving fees for 250,000 businesses, the CAC is letting go of roughly ₦3 billion in revenue. That is a significant concession, and it signals how serious the government is about pulling informal businesses into the formal sector.
The programme is part of the Renewed Hope Agenda and sits within a broader push to help small businesses access credit, government grants, and structured support programmes. Informal businesses are typically locked out of all of these, regardless of how long they have been operating.
Who Qualifies for Free CAC Registration?
The programme is designed for entrepreneurs who are already operating businesses but remain outside the formal sector due to cost, limited awareness, or fear of regulatory processes.
More specifically, micro enterprises are those with assets below ₦10 million (excluding land and buildings) and fewer than 10 employees. Small enterprises are those with assets between ₦10 million and ₦100 million and between 10 and 49 employees.
Eligibility requires Nigerian citizenship and operation of a micro, small, or medium enterprise without an existing CAC business name registration. Applicants are expected to provide accurate personal and business details and typically require a valid National Identification Number to complete the process.
MSMEs already on SMEDAN’s database without CAC registration will automatically qualify for the free registration drive.
One important boundary: participation is limited to business name registration only. It does not currently apply to limited liability companies or incorporated trustees. If you want to register a company rather than a business name, the standard fees still apply.
Who Does Not Qualify?
You are not eligible for the free programme if your business already has a CAC registration, whether that is a business name, a limited liability company, or any other structure. You also do not qualify if you are registering a new business for the first time purely for the purpose of accessing the free slots, since the intent is to formalise already-operating informal businesses.
Businesses looking to register a limited company or incorporated trustees are outside the scope of this initiative and will need to go through the standard CAC process with the applicable fees.
How to Apply: Step by Step
Step 1: Visit the SMEDAN Portal
Visit portal.smedan.gov.ng and complete the registration form. This is where the process begins. Do not use any third-party website or agent portal claiming to process free CAC registrations on your behalf, since the official entry point is SMEDAN’s own portal.
Step 2: Complete Your SMEDAN Registration
Provide accurate details about yourself and your business. You will need your National Identification Number. Make sure the business details you enter match what you actually operate, since discrepancies during verification can delay or void the application.
Step 3: Wait for SMEDAN to Contact You
Once registered with SMEDAN, beneficiaries will be contacted with the next steps for CAC certification. SMEDAN profiles eligible businesses and coordinates with CAC to process the registration. You do not need to approach CAC separately at this stage.
Step 4: CAC Reviews and Issues the Certificate
While SMEDAN facilitates and sponsors the process, CAC remains the sole authority responsible for reviewing applications, approving registrations, and issuing official certificates. Beneficiaries ultimately receive valid CAC documents directly from the Commission.
The certificate you receive through this programme is legally identical to one obtained through the standard fee-paying process. It carries the same weight for bank account opening, contract bidding, and any other purpose that requires CAC registration.
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Let our team handle your CAC registration and help you obtain your certificate without stress. From business name registration to company incorporation.
What If the Free Slots Are Full?
The 250,000 slots will not last forever, and there is no guarantee the programme will be extended in its current form. To track the next free registration cycle, monitor smedan.gov.ng and cac.gov.ng for announcements, follow the official SMEDAN and CAC social media accounts, and listen for federal government business development news.
If the free slots are already exhausted by the time you apply, standard CAC fees apply. The minimum cost for a new CAC business name registration is ₦11,000, which includes ₦1,000 for name reservation and ₦10,000 for registration. All payments go through Remita or an accredited payment channel on the CAC portal. No payment outside the portal is recognised.
CAC issues digital certificates within 24 to 72 hours for business names. So even outside the free programme, the process is faster than it used to be.
Benefits of Registering Your Business Name With CAC
A lot of business owners operate without registration for years and assume it makes no practical difference. It does.
A CAC-registered business name allows you to open a corporate bank account, which is different from a personal account and is often required before payment platforms, POS aggregators, and government agencies will work with you. It also makes you eligible for grants, loans, and capacity-building programmes that informal businesses are excluded from.
Government contracts at the local, state, and federal level all require CAC registration as a basic prerequisite. And in sectors where licensing is required, such as health, education, and food production, CAC registration is a starting point before any licence application can proceed.
For online businesses, registration also builds client trust. Many Nigerian consumers and B2B buyers are now asking for CAC numbers before making large purchases or engaging service providers for the first time.
Summary: Free vs Standard Registration
| Item | Free Programme (SMEDAN) | Standard CAC Process |
|---|---|---|
| Cost | Free | ₦11,000 minimum |
| Who it covers | Nano, micro, and small enterprises without existing CAC registration | Anyone registering a business name |
| Application entry point | portal.smedan.gov.ng | pre.cac.gov.ng |
| Certificate validity | Same as standard registration | Same |
| Limited liability company | Not covered | Available, with higher fees |
| Processing time | Varies (SMEDAN profiles first, then CAC processes) | 24 to 72 hours typically |
Frequently Asked Questions
Is the SMEDAN free CAC registration still available in 2026?
As of mid-2026, the programme is still open and accepting applications through the SMEDAN portal. However, the 250,000 slots are finite and first-come, first-served. The safest approach is to apply as soon as possible rather than waiting to see if the programme gets extended.
Do I need an agent to register through the free programme?
No. The process is fully online and goes through SMEDAN’s official portal. There is no requirement to use an agent, and paying anyone to “process” your free registration is unnecessary and risky since unofficial channels are not recognised by either SMEDAN or CAC.
What documents do I need to apply?
You need your National Identification Number, accurate personal information, and details about your business, including the proposed business name and the nature of your business activities. Having a backup business name ready is useful since your first choice may already be taken.
Will the free certificate be less valid than a paid one?
No. A certificate obtained through the free SMEDAN programme is issued directly by CAC and carries exactly the same legal standing as any other CAC business name registration. Banks, government agencies, and corporate clients treat it identically.
Can I use the free registration to set up a limited liability company?
No. The free programme covers business name registration only. Incorporated companies and incorporated trustees fall outside the scope of the initiative and require a separate application through the standard CAC process with the applicable fees.
What happens after I get the certificate?
Once your CAC certificate is issued, you can open a corporate bank account, apply for grants and government programmes, and begin using your registration number on official documents and correspondence. You are also automatically enrolled in SMEDAN’s MSME database, which gives you access to their capacity-building and support programmes.
Conclusion: Apply Before the Slots Run Out
Free government programmes with real, usable outcomes are not common enough to ignore. This one is legitimate, the certificate you receive is valid, and the process is fully online.
If your business is operating informally and you qualify as a nano, micro, or small enterprise, applying through the SMEDAN portal now makes more sense than waiting for a future cycle that may not come with the same terms. The slots are limited, the paperwork is straightforward, and the benefits of formalising your business extend well beyond having a certificate to show at the bank.
Obtain Your CAC Certificate
Let our team handle your CAC registration and help you obtain your certificate without stress. From business name registration to company incorporation.
