To operate as a lawful moneylender in Lagos, an individual or company must first procure the Money Lenders License in Lagos. A money lender's license is issued in the state where the money lending company or individual wishes to operate. The Magistrate Court will first issue a money lending certificate, which the State Ministry of Home Affairs will subsequently process into the money lending license.

Engaging in a money lending business without a license is a punishable offense in Nigeria, and the law provides that anyone reported engaging in any money lending activity, whether or not with the required license, will be presumed to be a Money Lender and held liable.

Find out the procedure for obtaining a money lening license in Nigeria's capital

How do you become a licensed money lender in Lagos?

In order to become a legitimate money lender in Nigeria, an individual or company must first obtain a Money Lender License. Section 4 of the Lagos State Money Lenders Law states that a person who lends money at interest or lends a sum of money in consideration of a larger sum being repaid shall be presumed to be a money lender until the contrary is proven. We have therefore provided the requirements needed to process the money lender license

Requirements for Obtaining a Money Lenders License in Lagos State

  1. The incorporation documents of the company; It is important to note that the memorandum and article of association of the company must contain lending services objectives;
  2. Police clearance certificates of the directors of the company;
  3. An application letter;
  4. Money Lenders Certificate Forms B and C from the Magistrate's Court;
  5. Passport Photographs of directors of the company;
  6. Evidence of tax payment for all directors (for 3 years);
  7. Reference letter from the applicant's bank;
  8. Proof of payment of the Money Lenders License application fee;

Renewal of Money Lending License in Lagos

The applicant will be issued a Money Lenders License which shall be valid for one (1) year and subject to annual renewal . The requirements for the renewal of money lenders license is provided below:

Requirements for renewing a Money Lenders License in Lagos

  1. Application for renewal
  2. Moneylenders ordinance (form B) from Magistrate Court
  3. Duly completed as well as endorse (form C) from Chief Magistrate court
  4. The previous license issued
  5. Updated tax clearance
  6. Evidence of payment of renewal fee.
  7. Inspection and Re-visitation.

Following the submission of all required documents, the officials from the Lagos State Ministry of Home Affairs will conduct a physical inspection of the applicant's place of business after which, the applicant will be issued a Money
Lenders License.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.