Novus Microfinance Bank has launched a corporate intervention program providing free Corporate Affairs Commission (CAC) business name registrations for micro-entrepreneurs and small business owners across Benue State. The initiative removes the regulatory and financial barriers that typically prevent informal merchants from formalizing their businesses, allowing local traders to obtain legal corporate identities at zero cost.
By funding the registration fees on behalf of small business owners, the bank’s program supports the Benue State government’s economic policies aimed at mapping the informal sector. It also helps local businesses transition into the formal economy, making them eligible for structured financial services and public sector support.
1. Lowering Barriers to Bring Unregistered Merchants into the Formal Economy
A large portion of the retail and agricultural trade in North-Central Nigeria operates within the informal sector. Many small business owners choose to remain unregistered not because they want to avoid regulations, but because they face high initial registration costs, complex legal procedures, and lack access to the digital platforms used by the Corporate Affairs Commission.
The Novus MFB program solves these issues by acting as a direct intermediary:
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Absorbing Government Filing Fees: The bank pays all official CAC registration and processing fees, allowing micro-enterprises to preserve their limited working capital.
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Streamlining the Application Process: Novus MFB uses its branches to collect paper documentation from local markets, handles the digital uploads, and manages the entire registration process on the federal portal.
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Providing Proof of Legal Operations: Once approved, business owners receive official government certificates, giving them the legal documentation required to lease commercial property, open corporate bank accounts, and protect their business names from infringement.
2. Strategic Value for Microfinance Institutions
While the free registration drive serves as a strong corporate social responsibility project, it also functions as an effective tool for customer acquisition. By helping entrepreneurs register their businesses, Novus MFB positions itself as the primary financial partner for these newly formalized companies, creating a natural pathway to cross-sell its banking products.
3. Deadlines and Targeted Regional Impact
The bank has confirmed that the free registration program will accept applications until June 2026. This extended timeline is intended to allow market associations, farming cooperatives, and youth-led tech startups across Benue’s local government areas sufficient time to gather their documentation and submit applications.
Over the long term, moving thousands of traders into the formal economy helps the state expand its internal revenue planning data, makes local commerce more transparent, and gives small businesses the legal foundation they need to scale past the survival stage.
