Category: Entrepreneurship & SMEs

ABUJA, Nigeria (NPA) — The Federal Government has commenced the free formalisation and registration of 250,000 Micro, Small and Medium Enterprises (MSMEs) across Nigeria in a major initiative aimed at expanding the country’s formal business sector and supporting entrepreneurship.

The programme, approved by President Bola Tinubu under the Renewed Hope Agenda, is being implemented through a partnership between the Corporate Affairs Commission (CAC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

Under the initiative, the Federal Government will waive all statutory business registration fees, removing one of the biggest financial barriers preventing many small businesses from formalising their operations.

According to the government, the programme is open to eligible entrepreneurs in all 36 states and the Federal Capital Territory on a first-come, first-served basis.

To qualify, applicants must own an unregistered business and register it as a Business Name under either a sole proprietorship or a partnership.

The scheme does not cover Limited Liability Companies (Ltd) or Non-Governmental Organisations (NGOs).

Eligible businesses include retail shops, fashion and tailoring enterprises, farms, technology service providers, artisan businesses and other genuine nano, micro and small enterprises.

Applicants are required to register on the SMEDAN portal using a valid email address and telephone number before completing their business profile with details including their proposed business name, business sector, owner’s information and National Identification Number (NIN).

Upon submission, applicants will receive a SMEDAN Unique Identification Number (SUIN), after which their applications will be transmitted electronically to the Corporate Affairs Commission for business name reservation and registration at no cost.

Successful applicants will receive their digital CAC Certificate of Registration by email.

The Federal Government said formal business registration would enable entrepreneurs to access government grants and intervention programmes, open corporate bank accounts, benefit from business development support and technical training, improve access to finance and investment opportunities, and enhance their credibility in local and international markets.

Government estimates indicate that approximately ₦3 billion in registration fees will be waived under the programme, enabling 250,000 nano, micro and small enterprises to join Nigeria’s formal economy.

The government also assured entrepreneurs that registration under the initiative does not automatically impose immediate tax obligations, noting that eligible small businesses will continue to benefit from existing tax exemption thresholds under Nigeria’s updated tax framework.

According to the Federal Government, the initiative forms part of broader efforts to promote entrepreneurship, create jobs, improve financial inclusion and strengthen the contribution of small businesses to Nigeria’s economic growth.

LAGOS, Nigeria (NPA) — Households and businesses across Lagos have continued to grapple with a widespread electricity blackout that has entered its sixth day, forcing many small enterprises to shut down as rising fuel costs make generator use increasingly unsustainable.

The prolonged outage has disrupted commercial activities across the state, with residents reporting difficulties in preserving food, pumping water, charging electronic devices and carrying out routine business operations.

Many small and medium-sized enterprises (SMEs), already struggling with rising operating costs, say the prolonged power outage has pushed them closer to closure as they can no longer afford the high cost of diesel and petrol needed to run generators.

Industry observers warn that the situation could further weaken the SME sector, one of Nigeria’s largest employers after agriculture, if electricity supply is not restored urgently.

The power disruption has been attributed to a combination of reduced electricity generation at the Egbin Power Station, faults on critical transmission infrastructure and instability on the national grid.

Egbin Power Station, located in Ikorodu, Lagos, is Nigeria’s largest gas-fired power plant with an installed capacity of 1,320 megawatts. Its reduced generation in recent days has significantly affected electricity supply across Lagos and the South-West.

The situation has been compounded by a fault on the Omotosho–Ikeja West 330kV transmission line, one of the major transmission corridors supplying electricity to Lagos. The fault has restricted the volume of power transmitted into the state, resulting in reduced allocations to electricity distribution companies.

Power supply was further disrupted following a national grid voltage instability on June 26, which reportedly caused several generating stations to shut down and affected critical transmission lines, including the Benin–Egbin 330kV line.

Engineers are said to be working to restore full stability to the grid and repair the affected transmission infrastructure.

The outage has affected customers served by both Eko Electricity Distribution Plc (EKEDP) and Ikeja Electric, leaving many communities without electricity for several consecutive days.

The blackout has also disrupted operations at technology hubs, manufacturing firms and service providers, with many businesses relying entirely on expensive alternative power sources to remain operational.

Residents have appealed to the Federal Government, the Transmission Company of Nigeria (TCN), electricity generation companies and distribution companies to expedite repairs and restore electricity supply.

They warned that prolonged outages could worsen economic hardship, increase production costs and force more small businesses to close.

Energy experts say the crisis highlights the persistent structural challenges facing Nigeria’s electricity sector, where generation shortfalls, ageing transmission infrastructure and recurring grid instability continue to undermine reliable power supply.

They argue that long-term investments in generation, transmission and distribution infrastructure are critical to reducing recurring nationwide outages and improving electricity reliability.

As repair works continue, thousands of households and businesses across Lagos remain hopeful that electricity supply will be restored soon to ease the mounting economic and social impact of the prolonged blackout.

LAGOS, Nigeria (NPA) — The Development Bank of Nigeria (DBN) Plc says it has disbursed more than N1 trillion to over one million Micro, Small and Medium Enterprises (MSMEs), supporting the creation of more than 1.6 million jobs since its inception.

Managing Director of DBN, Dr Tony Okpanachi, disclosed this on Wednesday in Lagos, outlining the bank’s achievements and growth strategy for the next five years.

Okpanachi said the bank’s next phase of expansion would focus on deepening financial inclusion, mobilising additional capital and increasing support for underserved sectors of the economy.

According to him, DBN aims to reach more than two million MSMEs and facilitate the creation of two million direct and indirect jobs over the next five years.

“Our strategic intent over this period is to achieve scale by expanding support for MSMEs and strengthening inclusive economic growth,” he said.

The managing director said the bank is targeting N1 trillion in outstanding loans and plans to issue N500 billion in guarantees under its new strategy. He added that DBN also intends to mobilise N1.3 trillion in debt and equity capital to support its expansion plans.

Okpanachi noted that inclusion remains a key pillar of the bank’s strategy, with 40 per cent of loans earmarked for women-led businesses and 30 per cent reserved for youth-owned enterprises. He added that 15 per cent of disbursements would target MSMEs in underdeveloped geopolitical zones and focus states.

The bank also plans to expand green financing to between N75 billion and N100 billion while training 500,000 MSMEs through its capacity-building programmes.

Reviewing the bank’s cumulative impact, Okpanachi said DBN has onboarded 84 Participating Financial Institutions (PFIs), including commercial banks, microfinance banks, merchant banks and development finance institutions.

He disclosed that women-owned businesses accounted for 77 per cent of beneficiaries, while 28 per cent were youth-led enterprises.

According to him, DBN disbursed N108 billion to more than 132,000 MSMEs operating in economically disadvantaged and conflict-affected states such as Borno, Adamawa, Katsina, Yobe and Zamfara.

In 2025 alone, the bank disbursed over N358 billion to more than 289,000 beneficiaries and onboarded five additional PFIs.

Speaking on the performance of DBN’s subsidiary, Impact Credit Guarantee Ltd. (ICGL), Okpanachi said the company has guaranteed loans exceeding N500 billion since inception.

He noted that ICGL, established in partnership with the World Bank, has supported more than 93,000 MSMEs and small corporates through over 130,000 credit guarantees, helping to sustain more than 203,000 jobs.

The subsidiary has also expanded its reach through partnerships with institutions including the African Development Bank and the European Investment Bank.

On financial sustainability, Okpanachi projected a cumulative five-year profit before tax of about N300 billion.

“We are balancing developmental impact with strong financial performance to ensure DBN remains a sustainable development finance institution,” he said.

He added that the bank has maintained stable supervisory ratings from the Central Bank of Nigeria and retained top credit ratings from Agusto & Co. and GCR Ratings.

Also speaking, Managing Director of ICGL, Mr Anthony Asonye, highlighted the critical role of credit guarantees in improving access to finance for MSMEs.

Asonye described credit guarantees as an effective tool for reducing lending risks and encouraging financial institutions to extend credit to underserved businesses.

He noted that Nigeria’s informal sector, despite contributing significantly to economic growth, continues to face limited access to formal financing due to perceived lending risks.

According to him, Nigeria has about 41 million registered SMEs, contributing between 45 and 49 per cent of the nation’s Gross Domestic Product (GDP), yet receiving less than one per cent of total commercial bank lending.

“SMEs contribute nearly half of our GDP, yet they receive less than one per cent of total banking credit,” Asonye said.

“Banks are often reluctant to lend because many SMEs lack adequate collateral, while prevailing risks in the operating environment push lending rates to between 35 and 40 per cent.”

To address the challenge, he said ICGL operates a World Bank-backed credit-collateral substitute scheme designed to de-risk lending to MSMEs.

He explained that the scheme provides silent guarantees to commercial banks, covering up to 60 per cent of default risk for standard loans and up to 75 per cent for businesses owned by women and young entrepreneurs.

“Our guarantee is a first-class, cash-backed collateral substitute,” he said.

“Commercial banks can deploy more assets to the SME sector with confidence, knowing there is a reliable backstop. It is a silent guarantee designed to minimise moral hazard while incentivising lending to the real drivers of the economy.” (NAN)