Money Lenders
In order to operate legally private moneylenders must obtain a license in the State where they do their lending business. Each State in Nigeria has a legislation governing lending that also regulates the activities of money lenders. Kudi Konsult can help you secure a Money Lenders License in Abuja and Lagos,
To get started you can click on the Start Now button which will lead you to a self service dashboard where you can input all necessary information for the service you desire and make payment online. If you would prefer to talk to a Consultant please hit the chat button below or call 0904 938 6246 (Available Mon-Fri 9am-5pm)
FAQs oN MONEY LENDERS LICENSE IN NIGERIA
A Money Lending License is an authority given to businesses for consumer and commercial lending in Nigeria.
No. The operations of a money lender company must be confined to the territorial geography of the State of license. However recently lenders seem to be bypassing this regulation by taking services online.
It is not advisable to carry on a moneylending business without a licence as it is criminal to do so. Also, as an unlicensed moneylender, you do not have the legal right to demand repayment of principal loan sums and accrued interest from borrowers who are in default of their loan obligations in court or anywhere else.
This is determined by the state where the application is made. For instance in Abuja, it can be obtained from the customary court while in Lagos it can be obtained from the Ministry of Home Affairs and Tourism.
Two certificates are issued namely; Form A and Form B.
These certificates are to be renewed annually.
In Abuja it takes about 1 week to go through the required documents submitted to be sure if the authenticity. After which the certificate can be issued. In Lagos it can take between 4-6 weeks in view of the requirement to conduct an inspection
All money lender licenses expire by 31st of December of the year of issuance and are renewable in January of every year.
There are certain requirements in Lagos State for Obtaining a Money Lender’s License and they are listed as follows:
- In Lagos state, the applicant must register as a Limited Liability Company with Corporate Affairs Commission (CAC) with at least two directors.
- An application is made in the appropriate format, to the Chief Magistrate of the Magisterial District where the lending company is located .
- A Money Lenders Certificate (Form B) and a letter addressed to the Permanent Secretary of the Ministry of Home Affairs are given to the applicant after a successful application, verifying due diligence and suggesting the issuing of a Money Lenders License.
- An application is then made to the Police for a Clearance report on the directors of the Money lending Company.
- The applicant would then make an application to the Lagos State Ministry of Home Affairs and attach the following supporting documents:
- 3 years (TCC) Tax Clearance Certificate for the Company and at least two directors
- Office address of the company or the individual.
- (CAC) Corporate Affairs Commission incorporation documents
- Police Clearance Certificate for two directors of the company
- A reference letter from a commercial bank in Nigeria
- Proof of payment of Application of application and processing fees
Upon submission of the application, the Ministry will carry out a Physical inspection of the place of business and the license will subsequently be issued once the applicant is deemed to be fit and proper to act as a money lender. The certificate is valid for one year and subject to renewal.
These are the requirements for obtaining Money Lenders License in Abuja:
1. Application letter to the Chief Magistrate accompanied by the following:
- The CAC Incorporation documents of the company.
- Tax Clearance Certificate of the Company.
- Police Clearance and thumbprint (For one or two of the company’s directors)
- Reference Letter from the Company’s bank
- Application letter for money lenders
- Means of identification of the Directors (Photocopy of National I.D)
- Affidavit of fact from of the Directors (this can be obtained from the Customary Court)
- Proof of payment of Application fees
Upon submission of these documents and payment of the prescribed fees, the application will be assigned to any Magistrate within the jurisdiction. If the application succeeds, the Money Lenders Certificate and License is issued to the Applicant by the assigned Magistrate for a period of one (1) year and shall be renewable at the expiration of the license.