Free CAC registration won't solve SMEs' problems, says AMEN President

AMEN Criticises Free CAC Scheme as Misplaced Priority

The Association of Micro Entrepreneurs of Nigeria, AMEN, has criticised the Federal Government's decision to offer free Corporate Affairs Commission, CAC, registration to 250,000 small and medium-sized enterprises, SMEs, describing the initiative as misplaced and insisting that access to finance, stable electricity and an enabling business environment remain the real challenges confronting businesses. President of AMEN, Comrade Prince Saviour Iche, made the remarks while reacting to President Bola Tinubu's approval of the free CAC registration scheme, which is aimed at encouraging business formalisation, expanding the tax base and promoting economic growth.

Iche argued that while the initiative may encourage more businesses to register formally, it would do little to address the harsh economic realities forcing many enterprises to shut down.

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.

— Comrade Prince Saviour Iche, President, AMEN

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.

— Comrade Prince Saviour Iche

N40,000 Daily Diesel Bill Exposes the Real Cost of Doing Business

Highlighting the impact of rising operating costs on businesses, Iche said entrepreneurs now spend significantly more on alternative power sources due to unreliable electricity supply.

I spend about N40,000 every working day on diesel alone to power my office. Previously, I spent about N18,000 daily. That tells you how much the cost of doing business has increased.

— Comrade Prince Saviour Iche

The industrialist, who said he rose from hawking on the streets to becoming a successful entrepreneur, maintained that his position reflected the experiences and concerns of members of the association across the country. He further claimed that about 500,000 SMEs have shut down since the current administration assumed office, blaming the closures on harsh economic conditions and an unfavourable business environment. The figure was based on data available to the association and could not be independently verified.

Revive Closed Businesses Before Registering New Ones, Iche Urges

Rather than focusing on registering new businesses, Iche urged the Federal Government to prioritise the revival of enterprises that have ceased operations.

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.

— Comrade Prince Saviour Iche

He warned that the decline in SME activities has contributed to rising unemployment, worsening insecurity and the increasing migration of skilled Nigerians abroad in search of better opportunities. According to him, providing stronger support for local industries would stimulate production, create jobs and reduce poverty across the country.

SMEDAN Intervention Funds Should Be Made Public — AMEN

Iche also called on President Tinubu and the Economic and Financial Crimes Commission, EFCC, to investigate claims by the Small and Medium Enterprises Development Agency of Nigeria, SMEDAN, that billions of naira had been disbursed as intervention funds to support SMEs. He urged the agency to publish the identities of beneficiaries in the interest of transparency and accountability.

The government should make public the names of those who benefited so Nigerians can see where the money went.

— Comrade Prince Saviour Iche

Drawing comparisons with China and Japan, Iche said governments in those countries deliberately invest in SMEs because they recognise them as major drivers of industrialisation, employment generation and economic growth. He urged the Federal Government to emulate such models by investing in manufacturing, improving electricity supply and implementing policies that encourage businesses to grow. He also appealed to the Federal Government to engage recognised business associations 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.

— Comrade Prince Saviour Iche

As of the time of filing this report, the Presidency, the Federal Ministry of Industry, Trade and Investment, and SMEDAN had not responded to the issues raised by the AMEN president.

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