Which Is Better · 4 min read
SMEDAN vs CAC - What's the Difference and Do You Really Need Both?
CAC makes you legal. SMEDAN classifies you as an MSME and unlocks grants, CBN loans and BOI schemes. Here's why every Naija founder should have both.
These two are NOT competitors - they do completely different jobs and you generally need both.
CAC (Corporate Affairs Commission)
- Gives your business legal existence
- Required before you can open a corporate bank account
- Required before SCUML, TIN, NAFDAC, NEPC, anything formal
SMEDAN (Small & Medium Enterprises Development Agency)
- Classifies you as a Micro, Small or Medium enterprise
- Issues the National MSME Registration Certificate
- Required for most CBN intervention loans, BOI MSME schemes, FG grants, GEEP, NIRSAL
- Often requested by donor programmes and supplier portals
Order
Register CAC first - your CAC number is what SMEDAN asks for. AMG can bundle SMEDAN with your CAC package so you walk out with both certificates.
If anyone tells you 'SMEDAN replaces CAC' - please don't listen. Confirm with AMG before paying anyone.