Nigeria to Invest ₦6 Billion in Youth Entrepreneurship with Free Business Registrations

The Corporate Affairs Commission (CAC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) are launching a ₦6 billion initiative to provide free business registration for 250,000 youth-led businesses, aiming to stimulate economic growth and reduce unemployment.

The program, unveiled recently, focuses on young entrepreneurs in sectors like content creation, small-scale trading, and emerging industries, assisting them in transitioning from informal to formally registered operations. This formalization is expected to improve access to funding and generate thousands of jobs, bolstering Nigeria’s growing MSME sector – a key driver of economic diversification. Speaking during a visit from the Association of Northern Nigerian Students in Kaduna, CAC Registrar-General Hussaini Ishaq Magaji encouraged young people to participate, stating the initiative “represents a significant economic intervention designed to strengthen the MSME sector and reduce youth unemployment.”

Alongside the registration drive, the CAC is implementing an Artificial Intelligence (AI) system to address service delays and a backlog of over 7,000 pending applications. Introduced earlier this year, the AI tool will automate tasks across compliance, registry operations, and customer service, processing requests and managing inquiries more efficiently. While the initial rollout faced challenges with payment and document submission, the platform now handles over 11,000 transactions daily, according to the CAC, and is designed to improve upon existing economic conditions in the region.

The move is part of a broader government effort to support youth-owned businesses and encourage formalization nationwide, recognizing that a formalized business sector is crucial for attracting investment and fostering sustainable economic development. Officials stated the CAC anticipates continued improvements in processing times and service accuracy as the AI system becomes fully integrated.