Free CAC Registration for Small Businesses in Nigeria (2026): How to Apply

The Federal Government is registering 250,000 small businesses with the CAC for free — a real waiver of the roughly ₦10,000–₦11,000 registration fee, delivered through a CAC–SMEDAN partnership. If you have been meaning to formalise your business, this is the cheapest moment you will get. Here is who qualifies, exactly how to apply, and how to avoid the scam that has grown up around it.

This is genuinely free. Register through the official SMEDAN portal — you should never pay anyone a "processing fee" to access the free scheme. Slots are limited and first-come, first-served.

What the scheme is

Under the Federal Government's MSME drive, the CAC and SMEDAN — the Small and Medium Enterprises Development Agency — are covering the cost of business-name registration for 250,000 micro, small and nano enterprises.

Formalising matters more than most informal traders expect. A CAC certificate lets you open a corporate bank account, apply for loans and grants, win larger and corporate contracts, and it is increasingly required to access government support at all. A great many Nigerian businesses are excluded from formal finance for the sole reason that they were never registered.

How to apply (step by step)

Go to the SMEDAN portal — portal.smedan.gov.ng/signup — and create an account with your name, email and a password.
Complete your business profile — business name, address, sector, and your National Identity Number (NIN). You will be issued a SMEDAN ID (SUIN).
When asked "do you already have a CAC number?", select "No".
SMEDAN profiles your business and passes it to the CAC, which completes the free registration.

That is the whole process, and there is no payment for eligible businesses. You will need a NIN first; it is also what generates your Tax ID.

Choose your business name carefully

One practical tip that saves a lot of frustration: applications are commonly rejected because the proposed name is already taken, too similar to an existing one, or uses restricted words. Before you apply:

Search the CAC's public register for anything close to your intended name.
Avoid words implying regulated activity — bank, insurance, holdings, federal, national — unless you hold the relevant approval.
Have two or three alternatives ready so a rejection does not cost you your place in the queue.

⚠️ The scam to expect

Any free government scheme attracts intermediaries who charge for access to it. Expect to encounter "agents" on WhatsApp and Facebook offering to secure your free CAC slot for ₦5,000 or ₦10,000 — which is precisely the fee the scheme exists to remove.

Rules to hold to:

Apply on the official SMEDAN portal yourself. Type the address rather than following a link sent to you.
Never pay for the free scheme. If you are paying, you are not on it.
Never share your NIN or BVN with someone who contacted you first. Those details are what identity fraud runs on.
Be wary of anyone promising to "guarantee" a slot. Nobody can; it is first-come, first-served.

Good to know

It covers business-name registration (sole proprietorship or partnership), not a limited company. For the difference and when the company is worth paying for, see business name vs limited company.
The scheme is unaffected by the CAC's April 2026 "AI service charge", which applies to paid registrations rather than the free MSME slots.
Slots are limited and first-come, first-served, so apply early rather than perfectly.
If the free allocation has been exhausted by the time you read this, the paid route is still modest — see how much it costs to register a business.

After you're registered

A CAC number unlocks the next steps, and the order matters:

Your Tax ID — your CAC number now serves as your business Tax ID, and it is free to generate: how to get a TIN.
A business bank account — open it immediately and put everything through it, because lenders will later ask for 6–12 months of statements: how to open a business bank account.
Funding — you can now apply for government schemes, grants and business loans.
Keep it current — business names must be renewed and kept up to date, and letting registration lapse undoes the benefit.

Frequently asked questions

Is CAC registration really free in 2026? For eligible micro and small businesses under the FG/CAC/SMEDAN scheme covering 250,000 MSMEs, yes — the business-name registration fee is waived. Apply through the official SMEDAN portal.

What does the free scheme cover? Business-name registration only, not limited company incorporation.

Do I need a NIN? Yes — your National Identification Number is required to create the SMEDAN profile.

Should I pay an agent to get me a free slot? No. If you are being charged, you are not getting the free scheme. Apply yourself on portal.smedan.gov.ng.

What if the slots run out? Registering a business name yourself through the CAC portal still costs only around ₦10,000–₦12,000 — see the full cost breakdown.

Educational information, not legal advice. Government schemes open and close — confirm the scheme is still running and that slots remain on the official SMEDAN and CAC channels before applying, and never pay for a free service.