4 October 2018

Nigeria: Govt Cuts MSMEs Registration Costs By 50%

The federal government has approved a 90-day special window, from October 1 to December 31, 2018, for Micro, Small and Medium Enterprises (MSMEs) to register their business at 50 percent reduction in cost from N10,000 to N5,000.

Vice President, Prof. Yemi Osinbajo, disclosed this at the launch of the 19th edition of the National MSMEs Clinics in Enugu, Enugu State, noting that the move is aimed further easing the process of registering small businesses in the country.

In a statement made available to Vanguard, Osinbajo stated: "It was observed during some of the earlier editions of the MSME Clinics that a lot of MSMEs were finding it difficult to register their businesses as a result of cost. The practice since we began the MSME clinics is that most agencies offer price reductions especially for registration, and all other pre-investment approvals, during the Clinics.

"So, I am pleased to announce that the Federal Government, through the Corporate Affairs Commission (CAC), has approved a special window of 90 days from October 1st to Dec 31st 2018, to register businesses at a considerably reduced rate of N5000 only, down from as much as N10,000 previously. This will afford more MSMEs an opportunity to formalize their businesses."

Speaking on other initiatives by government to consolidate the gains of the MSMEs Clinics, the vice president said: "We will be establishing shared facilities for MSMEs based on a partnership between the federal government, interested States, Bank of Industry (BoI), Nigerian Export-Import Bank (NEXIM), Federal Inland Revenue Service (FIRS), National Agency for Food and Drug Administration and Control (NAFDAC), Standards Organisation of Nigeria (SON) and interested private sector partners, as part of our efforts at deepening the impact of the Clinics.

"The purpose of these shared facilities is to have a fully-equipped place with machinery and equipment required for various trades and businesses. MSMEs can then do their businesses at those locations at a reasonable cost.

"This way, MSMEs are spared the financial burden of having to buy their own equipment in order to be able to do business. Where possible, these shared facilities would have been pre-certified by relevant agencies, removing the need for MSMEs to pursue these certifications by themselves."

He also announced the Federal Government's willingness to partner with State governments in establishing more One-Stop Shops, to further enhance business registration and facilitate seamless interaction between owners of small businesses and relevant regulatory agencies.

Earlier in his remarks, Governor Ifeanyi, Ugwuanyi of Enugu said the State government had already keyed into some of the social investment programmes initiated by the federal government, assuring that the State would continue to cooperate with all federal authorities to improve the well-being of the people.

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