AMEN President Faults Tinubu’s Free CAC Registration Initiative, Seeks Power, Finance for SMEs

AMEN President Faults Tinubu’s Free CAC Registration Initiative, Seeks Power, Finance for SMEs

….Calls for Business-Friendly Policies

SMEs Need Capital, Not Free CAC Registration, AMEN Tells Tinubu

…..Faults Tinubu’s Free CAC Initiative, Calls for Business-Friendly Policies

By Naomi Onome

The President of the Association of Micro Entrepreneurs of Nigeria (AMEN), Comrade Prince Saviour Iche, has criticised the Federal Government’s decision to offer free Corporate Affairs Commission (CAC) registration to 250,000 small and medium-sized enterprises (SMEs), arguing that the initiative fails to address the real challenges confronting businesses across the country.

President Bola Tinubu recently approved the free registration scheme as part of efforts to encourage business formalisation, expand the tax base and promote economic growth. However, Iche said entrepreneurs are more concerned about access to finance, stable electricity supply and an enabling business environment than the cost of registering their businesses.

Speaking during an interview, the AMEN president said the policy reflected what he described as poor advice given to the President by those responsible for SME and investment policies.

“I will not blame President Tinubu. I believe he has not been properly advised. If the right people with practical business experience were advising him, they would know that free CAC registration is not the problem facing SMEs,” he said.

Iche questioned whether key government officials responsible for trade, investment and SME development possess sufficient practical experience in running businesses.

According to him, registering a business with the Corporate Affairs Commission costs about ₦20,000 and is no longer a major obstacle for entrepreneurs.

“Our problem is not CAC registration. Our problems are access to finance, the high cost of doing business and the lack of reliable electricity. Those are the issues threatening the survival of SMEs,” he said.

He lamented the rising operational costs faced by business owners, citing his own experience as an example.

“I spend about ₦40,000 every working day on diesel alone to power my office. Previously, I spent about ₦18,000 daily. That tells you how much the cost of doing business has increased.”

The industrialist, who said he built his business from hawking on the streets before becoming an entrepreneur, maintained that his views were based on practical experience and regular engagement with members of the association.

Iche further claimed that about 500,000 SMEs have shut down since the current administration came into office, attributing the closures to harsh economic conditions and an unfavourable business climate.

He said the figure represented data available to the association, although it could not be independently verified.

Rather than registering new businesses, he urged the Federal Government to focus on reviving enterprises that have already folded up.

“There are businesses that registered years ago but have closed because they could no longer survive. Government should concentrate on helping such businesses return to production instead of celebrating free registration,” he said.

According to him, the decline of SMEs has contributed to rising unemployment, increased insecurity and the migration of skilled Nigerians to other countries in search of better opportunities.

He maintained that stronger support for local industries would help stimulate production, create jobs and reduce poverty.

Iche also called on President Tinubu and the Economic and Financial Crimes Commission (EFCC) to scrutinise claims by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) that billions of naira had been disbursed to support SMEs.

He specifically urged the agency to publish details of beneficiaries of the intervention funds to promote transparency and accountability.

“The government should make public the names of those who benefited so Nigerians can see where the money went,” he said.

The AMEN president insisted that many businesses that have shut down could quickly resume operations if provided with affordable financing and a more supportive business environment.

“The knowledge and experience are still there. What many entrepreneurs lack today is capital and an environment that allows businesses to survive.”

Drawing comparisons with countries such as China and Japan, he said governments in those countries deliberately invest in SMEs because they recognise them as critical drivers of industrialisation, employment and economic growth.

He argued that Nigeria should adopt similar policies by investing in manufacturing, improving electricity supply and creating conditions that enable businesses to thrive.

Iche also called on the Federal Government to engage business associations more frequently before introducing policies affecting the SME sector.

“There are recognised business groups across the country with firsthand knowledge of the challenges facing entrepreneurs. Government should invite us to the table so we can provide practical recommendations that will help revive the sector,” he said.

As of the time of filing this report, the Presidency, the Federal Ministry of Industry, Trade and Investment and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) had not responded to the issues raised by the AMEN president.