The Kano State Government is taking steps to simplify business registration processes to encourage Small and Medium Enterprises (SMEs) to formalize their ventures, boost economic growth, and improve tax revenue.
The Commissioner for Commerce, Investment and Industry, Alhaji Shehu Wada Sagagi, made this known last week while receiving a delegation led by the Registrar of the Corporate Affairs Commission (CAC), in Kano, Hajiya A’isha Datti, in his office.
Sagagi emphasized the significant role SMEs play in the economy, noting that they contribute more to the Gross Domestic Product (GDP) than large-scale manufacturers.
“When you see SMEs, they are at the bottom of the pyramid, but they are the largest. Their contribution to the GDP is even higher than that of larger manufacturers,” he stated.
To encourage more businesses to register, the commissioner announced plans to subsidize registration fees.
“Maybe we are going to form a committee, and I will ask the KIRS, COTECH, KOSMEDA, the director of SSA Business Development, and the Department of Commerce to come up with an acceptable fee that the state will pay for small businesses to register,” he said.
He pointed out that many businesses, especially in the leather industry, remain informal, leading to unrecorded exports.
“I visited Kofar Ruwa, Wambai, Zage, and Chiromawa, where a lot of leather work is undertaken, mostly by women. They manufacture footwear and leather bags, which are exported to Nigeria, Cameroon, Chad, and beyond, but because their businesses are not formalized, they are unaccounted for,” he explained.
The commissioner also stressed the need for financial inclusion to integrate these businesses into the state’s tax system.
“Let’s make sure that all these businesses that were not financially included achieve financial inclusiveness so they can contribute to the state’s revenue,” he added.
In a remark, Hajiya A’isha Datti highlighted the advantages of business formalization, including increased internally generated revenue (IGR), improved investor confidence, and better access to government incentives.
“When businesses formalize, they are required to pay taxes such as income tax, value-added tax, and business premises tax, all of which contribute significantly to the state’s IGR,” she noted.
She urged the state government to collaborate with CAC in reducing bureaucratic hurdles and streamlining business registration processes.
“The state government could run awareness campaigns alongside the Corporate Affairs Commission to educate citizens on the benefits of business registration,” she suggested.
Sagagi reaffirmed the government’s commitment to supporting SMEs, assuring that efforts would be made to lower registration fees.
“We will set up a committee, and I hope we are going to give out the lowest rate,” he said.
The meeting underscored Kano State’s commitment to fostering a business-friendly environment that encourages entrepreneurship and economic development.
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