Entrepreneurship in Nigeria often comes with challenges, but for many small-scale manufacturers, the journey toward regulatory compliance can feel like navigating a battlefield. This reality was brought to light by , founder of and WEM Hub Africa, who recently shared her experience supporting businesses through the complexities of formal registration.
What began as a straightforward mission—to help businesses transition from informal, non-regulated production into fully compliant operations—quickly evolved into something far more complicated. Through the AEIF Manufacturing Incubation program, the goal was initially to assist entrepreneurs with business registration. However, the process exposed deeper systemic issues affecting dozens of small businesses.
Out of the participants admitted into the program, at least 58 businesses had previously attempted to register with (NAFDAC) but were unsuccessful. While failed registration attempts are not uncommon, the more alarming discovery was what followed: many of these businesses had relied on third-party agents to handle their applications—and were now locked out of their own accounts.
The root of the issue lies in the NAFDAC registration system, where a company’s Tax Identification Number (TIN) serves as the unique user ID. In numerous cases, agents completed the registration process on behalf of business owners. When applications failed, these agents retained control of the accounts and demanded exorbitant fees—ranging from ₦400,000 to ₦1.5 million—to release access back to the rightful owners. With no ability to change their TIN, affected businesses were effectively blocked from reapplying or moving forward.
As the scale of the problem became clear, Edu took decisive action. Leveraging her network, she engaged with relevant officials to find a solution. Her intervention has already yielded tangible results: 19 businesses have successfully regained control of their accounts after login credentials were reset and returned directly to the owners.
Despite this progress, many cases remain unresolved. Efforts are ongoing to recover the remaining accounts and restore full ownership to affected entrepreneurs.
This situation highlights a critical issue within the small business ecosystem—one that goes beyond regulatory hurdles to include exploitation, lack of transparency, and the vulnerability of entrepreneurs navigating complex systems. As initiatives like WEM Hub Africa continue their work, the hope is not only to achieve compliance but also to create a safer, more supportive pathway for businesses striving to grow legitimately.
