CAC for Beginners: How Your Business Registration Unlocks ₦5 Million in Federal Loans
In 2026, a "Business Name" is more than just a title—it is your financial identity. The Federal Government of Nigeria, through the Bank of Industry (BOI) and SMEDAN, has made CAC registration the primary requirement to access the current ₦5 Million Presidential Intervention Loan. If your business is still "informal," you are leaving millions on the table.
Why CAC is the "Master Key" to Funding in 2026
Most federal loans (like the FGN MSME Intervention Fund) are disbursed at a 9% annual interest rate. Commercial banks charge 30%+. To get that 9% rate, you must prove your business is a legal entity.
Legitimacy: Lenders know you aren't a "fly-by-night" operation.
Corporate Account: You cannot open a business bank account without a CAC certificate.
Tax Identity: Registration automatically generates your Tax Identification Number (TIN), required for all government grants.
The ₦5 Million Federal Loan: What You Need to Know
The 2026 SME loan scheme managed by the Bank of Industry (BOI) has a specific checklist:
Loan Amount: Up to ₦5,000,000 per SME.
Interest Rate: 9% per annum (Single digit).
Tenor: Up to 3 years.
The "CAC Trigger": You must provide your RC Number or BN Number and evidence of up-to-date Annual Returns
How to Register Your Business (DIY Guide)
- Name Search: Visit pre.cac.gov.ng and reserve two proposed names (₦700 fee).
- Select Structure: Choose "Business Name" (for small shops/consultants) or "Company Limited by Shares" (for bigger startups).
- Enter Details: Provide your NIN, residential address, and a clear description of your business.
- Pay Filing Fees: In 2026, Business Name registration is roughly ₦10,000–₦12,000 including bank charges.
- Download Certificate: Once approved, download your electronic Certificate and Status Report immediately.
CAC Registered vs. Unregistered: Loan Opportunities
| Loan Type | With CAC | Without CAC |
|---|---|---|
| Max Loan Amount | ₦5 Million - ₦50 Million | Max ₦50,000 (Nano-grants) |
| Interest Rate | 9% Per Year | 15% - 30% Per Month |
| Repayment Term | 1 - 3 Years | 7 - 30 Days |
While waiting for your CAC certificate, avoid using unlicensed loan apps that might harass your contacts.
