General News
FG Slashes Business Registration Cost for SMEs by 60%
Federal government has reduced the costs of registering Small and Medium Scale Enterprises (SMEs) with the Corporate Affairs Commission by 60 per cent.
Olusegun Aganga, minister of Industry, Trade and Investment, stated this while speaking at the 8th annual Micro, Small and Medium Enterprises finance conference.
The conference with theme ‘MSME financing in Nigeria: Past, present and future’ was conceptualised to look at the MSME finance sub-sector from a holistic perspective.
Aganga said the directive for the reduction of the business registration costs was given by President Goodluck Jonathan, adding that the development underscored the importance of the sector to poverty reduction, job creation and inclusive growth.
He said since SMEs account for about 80 per cent of businesses registered with the CAC as well as about 50 per cent of the country’s Gross Domestic Product, there was need to remove all factors that would impede their development to nation building.
He said, “The administration of Mr President has made it a matter of importance to support MSME in certain key areas-access to affordable finance which we are doing here today, access to markets, formalization of businesses, skill acquisition, provision of infrastructure to reduce the cost of businesses for SMEs.
“Already, the president has approved a reduction in the cost of setting up SMEs by 60 per cent and the idea is to reduce the cost of doing business.
“So today if you are going to CAC to set up a company, then know that the costs have been reduced by 60 per cent already.”
He said the N220bn facility whose disbursement was flagged off at the event by Jonathan would help not only to empower SMEs, but address the access to financing needs of the sector in an efficient and sustainable manner.
Jonathan while speaking at the event commended the CBN for providing the fund for the development of the sector at an interest rate of nine per cent.
He added that the decision of the apex bank to set aside 60 per cent of the fund for women was in line with his administration’s commitment to women empowerment.
The president said MSMEs have been recognized globally as the engine of growth in any development-oriented economy.
He added that due to their inherent labour intensive production processes, they also provide a veritable platform for job creation.
He said, “All over the developed world, the contribution of MSME to GDP is on the average of about 47 per cent, this shows clearly how important the MSME are to us.
“With about 17.3 million SMEs in Nigeria, there is need for more concrete and concerted efforts to expand the activities of MSMEs in our country.”
He said the focus of this year’s conference which is geared towards enhancing access to finance was appropriate noting that a vibrant MSME sub sector was indispensable to achieving sustainable transformation in the Nigerian economy.
Jonathan said as Africa’s largest economy with excellent prospects of becoming one of the 20 largest economy in the world in the nearest future, it is imperative that the challenges confronting MSMEs are addressed “frontally at this time.”
The President said his administration had already instituted a number of reforms to improve the business environment and build strong institutions that would fast track the growth and progress of MSMEs.
He said, “Given that the structural transformation of the economy remains our core priority, we are investing heavily in critical infrastructure to promote job creation and inclusive growth.
“We are aware that inadequate infrastructure increase the cost of production by estimated 30 per cent making Nigerian goods under-competitive and we need to improve on that.
“The federal government believes that stable power supply is the bedrock of our industrial development. It will not only reduce the cost of manufacturing and services significantly, it will also engender investments and create jobs.”
He also said as part of measures to enhance the contribution of MSMEs to economic growth, the Federal Government will establish a wholesale development finance institution, which would provide long term funds of up to 15 years for industrial development.
He added that existing DFIs would be restructured for better performance and improved access to finance by the MSMEs.
He said the enormity of the task ahead requires immediate and dedicated action adding that this underscores the need to effectively disburse the N220bn MSME fund.
In his keynote address delivered at the event, Mr Godwin Emefiele, CBN governor, said the MSME financial gap, which is estimated at N9.6tr was one of the major reason why the apex bank intervened in the sector.
He said in view of the fact that cost and access to credit had continued to be an inhibiting factor to the survival and growth of many MSMEs in the country, the apex bank would be working with relevant stakeholders to establish a Secured Transaction and National Collateral Registry to facilitate the registration and acceptability of movable property as loan collateral.
He added that the bank would also encourage venture capital companies to fund MSMEs, as well as set up a National Credit Scoring System to improve access to information on borrowers to positively influence credit decisions,
“We would also enhance the operations of Credit Reference Bureaus. We believe that these efforts would improve the information available to potential lenders on persons seeking loans and therefore, help to isolate bad borrowers from credible ones,” he said.
He said going forward, the CBN’s focus would remain on sectors that can create jobs on a mass scale as well as reduce the country’s import bill and conserve the country’s foreign exchange.
For example, he said the bank would maintain a keen interest in supporting the creation of an enabling environment to trigger private sector investment to curb the growing trend of medical tourism, which has depleted the nation’s foreign reserves.
In the power sector, he said 36 power projects have received N115.73bn from the Power and Aviation Intervention Fund noting the apex bank would also carefully consider funding viable gas to power projects.
He said, “In fact, we are currently collaborating with the Ministries of Power and Petroleum Resources, the Nigerian Electricity Regulatory Commission and all relevant stakeholders to find innovative ways of dealing with the legacy gas to power debt.
“This is to ensure that the international oil companies and other producers of gas can significantly increase the production and supply of gas to power plants across the country.”
At the event, Union Bank of Nigeria Plc with a total loan exposure of N4.17bn for 14,752 projects was decorated by the president as the best performing bank in the Agricultural Credit Guarantee Scheme.
Similarly, Sterling Bank Plc, with a total exposure of N6.16m in nine projects won the best performing bank in Commercial Agriculture Credit Scheme.
Based on the guidelines of the MSME fund, each state of the federation would be able to access the sum of N2bn which would be administered to beneficiaries at an interest rate of nine per cent.
Already, the apex bank had signed Memorandum of Understanding with governors from Delta, Akwa Ibom, Osun, Oyo, Bayelsa, Gombe, Zamfara, Enugu, Ondo and Benue state to access the fund.
Also, two per cent of the fund would be made available for economically active physically challenged entrepreneurs.
Federal government has secured a fresh $208.3 million financing from the World Bank to strengthen Nigeria’s cash transfer programme targeted at poor and vulnerable households as the country continues to grapple with the economic impact of ongoing reforms.
President Bola Tinubu’
The new facility is expected to bolster the government’s social protection initiative by providing direct cash support to millions of low-income Nigerians affected by rising living costs following the removal of petrol subsidy and the liberalisation of the foreign exchange market.
The funding forms part of the World Bank-backed social safety net programme aimed at cushioning the impact of economic reforms while improving the country’s social protection system.
It is also expected to support efforts to enhance the National Social Register, strengthen payment systems and ensure that financial assistance reaches eligible beneficiaries more efficiently.
The latest financing adds to a growing list of World Bank-supported projects approved under President Bola Tinubu’s administration.
Since the administration assumed office in May 2023, Nigeria has secured more than $11.4 billion in World Bank loan approvals across key sectors, including power, agriculture, healthcare, education, digital infrastructure, financial inclusion and social protection.
However, only part of the approved funding has been disbursed, with several projects still at various stages of implementation.
Government officials have maintained that expanding the cash transfer programme is essential to protecting vulnerable Nigerians from the short-term effects of economic reforms while laying the foundation for long-term economic stability.
However, the fresh borrowing has renewed concerns among economists and policy analysts over Nigeria’s rising debt burden and increasing dependence on external financing.
Critics have called for greater transparency in the utilisation of borrowed funds and improved monitoring of social intervention programmes to ensure that the intended beneficiaries receive the support.
According to data from the Debt Management Office (DMO), Nigeria’s total public debt stood at approximately ₦159.28 trillion as of December 31, 2025, with multilateral lenders, particularly the World Bank, accounting for a significant portion of the country’s external debt portfolio.
Despite the concerns, analysts note that World Bank loans are generally concessional, offering lower interest rates and longer repayment periods than commercial loans.
They argue that the ultimate value of the new financing will depend on effective implementation, accountability and the successful delivery of cash support to vulnerable households across the country.
Socio-Economic Rights and Accountability Project (SERAP) has filed a legal action against the Independent National Electoral Commission (INEC) for allegedly failing to investigate claims that governors under the All Progressives Congress (APC) diverted N800 billion from public funds to finance President Bola Tinubu’s re-election bid.
The lawsuit, marked FHC/ABJ/CS/1426/2026, was filed last week before the Federal High Court in Abuja.
SERAP is asking the court to issue an order of mandamus directing INEC to investigate the allegations and compel the commission to obtain full disclosure from the APC and the governors on the alleged campaign fund, including the identities of donors and the lawful sources of the funds.Campaigns & Elections.
The organisation is also seeking an order directing INEC to commence a formal review into compliance with Section 91 of the Electoral Act by political parties and candidates, particularly regarding the sources and scale of campaign financing in the current political cycle.
According to SERAP, the allegations raise serious concerns about political finance transparency, electoral integrity and Nigerians’ constitutional right to participate freely in governance.
In the suit filed on its behalf by lawyers Kolawole Oluwadare and Kehinde Oyewumi, the organisation argued that the reported diversion of public funds for political purposes poses a significant threat to the credibility of the 2027 general elections.
It maintained that opaque political financing remains a major gateway for corruption and undermines public confidence in democratic institutions.
“The abuse of state resources for electoral advantage undermines democratic integrity and public trust. Fairness, transparency, and accountability in political or campaign finance are essential safeguards against corruption, state capture, and undue influence in democratic processes,” SERAP stated.
The organisation argued that Section 91 of the Electoral Act empowers INEC to regulate political donations, require disclosure of campaign contributions and enforce sanctions where donation limits are exceeded.
It noted that political parties found to have exceeded donation limits are liable to a fine of up to N10m and forfeiture of excess funds, while individuals who exceed the legal threshold face fines amounting to five times the excess contribution.
SERAP further contended that the commission has constitutional and statutory obligations to ensure transparency in political financing and prevent the misuse of public resources for electoral advantage.
According to the group, allegations involving large-scale public funds and opaque financial arrangements fall squarely within INEC’s investigative and monitoring responsibilities under the Constitution and the Electoral Act.
The suit also cited Sections 13, 14(2)(c) and 15(5) of the 1999 Constitution (as amended), arguing that they impose obligations on public institutions, including INEC, to safeguard democratic participation, prevent corruption and uphold constitutional principles.
SERAP further relied on international legal instruments, including the African Charter on Human and Peoples’ Rights, the International Covenant on Civil and Political Rights and the United Nations Convention against Corruption, which it said require transparency in political financing and accountability in the management of public resources.
The organisation argued that any diversion of public funds for campaign purposes would amount to a violation of both domestic and international legal obligations and would undermine the principle of a level playing field in elections.
No date has been fixed for the hearing of the suit.
Hydrogen Payment Services Company Limited has reinforced its commitment to community impact through an employee-led blood donation drive in partnership with the Lagos State Blood Transfusion Service (LSBTS) and Gbagada General Hospital.
Held recently, the initiative extended this year’s World Blood Donor Day campaign, themed “One Drop of Humanity. Give Blood. Save Lives.” It brought together Hydrogen employees in a collective effort to strengthen blood reserves for patients across Lagos State.
The drive recorded strong participation, with employees voluntarily donating blood to support critical healthcare needs, including emergency care, surgical procedures, maternal health, sickle cell treatment, and assistance for accident victims. The contributions will help bolster the state’s blood bank and improve access to life-saving interventions.
Medical teams from LSBTS and Gbagada General Hospital supervised the exercise and engaged participants on the importance of regular voluntary blood donation. They also addressed common misconceptions, reinforcing the role of consistent donors in maintaining a safe and adequate blood supply.
Dr. Folashade Tawak, Senior Medical Practitioner with the Lagos State Government, commended the initiative.
“Voluntary blood donation remains one of the most impactful ways individuals can contribute to saving lives. We commend Hydrogen for driving this initiative and encouraging active employee participation. Efforts like this are critical to sustaining the blood reserves needed for patients in urgent need,” she said.
Fiyinfoluwa Olorunsola, Acting Chief Executive Officer of Hydrogen, said the initiative reflects the company’s broader purpose.
“At Hydrogen, our responsibility goes beyond building payment infrastructure. We are committed to making a meaningful difference in the communities we serve. This drive brings our people together around a cause that directly saves lives, and I am proud of the culture we are building, defined by purpose, compassion, and service,” she noted.
Also speaking, Obinna Ojekwe, Head of Marketing and Communications, highlighted the personal impact of the initiative: “While we enable the seamless movement of value every day, this initiative allowed us to give something more personal. Knowing that a simple act can save lives makes this deeply meaningful, and it reflects the kind of organisation we are proud to be part of.”
The blood donation drive underscores Hydrogen’s commitment to creating value beyond financial transactions by empowering its employees to contribute meaningfully to society. It forms part of the company’s broader 2026 employee volunteering and CSR programme, with additional community-focused initiatives planned throughout the year.
Hydrogen Payment Services Company Limited Hydrogen Payment Services Company Limited (Hydrogen) is Africa’s institutional payments infrastructure partner, enabling financial institutions and large organisations to process, move, and settle payments at scale with trust and operational integrity.
Through resilient, Africa-focused infrastructure, Hydrogen helps institutions manage payment complexity, improve efficiency, and deliver reliable services across the continent.
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