Oluwasanmi Ayokunle & Co.

Obtaining a Money Lender License in Nigeria

Published August 25, 2023

In Nigeria, to engage in legal money lending, both individuals and companies are required to obtain a Money Lenders license. This license for conducting money lending operations is granted by the respective states within Nigeria. Additionally, the Money Lenders license can also be issued by the Federal Capital Territory (Abuja) in Nigeria.

Obtaining a Money Lender License:

  1. Prepare an application letter on the company’s letterhead, addressed to the Chief Magistrate, with the company seal affixed.
  2. Provide certified true copies of CAC Form 2 and CAC Form 7.
  3. Submit the Memorandum and Articles of Association of the company.
  4. Provide the Certificate of Incorporation.
  5. Submit photocopies of means of identification of the directors.
  6. Include the Tax Clearance of the individual or corporate body obtained from the Federal Inland Revenue Service (FIRS), or proof of tax registration for new companies.
  7. Obtain Police Clearance for the applying individual/corporate body from the designated authority.
  8. Provide evidence of maintaining a current account with a licensed bank or a reference letter from the company’s bank.
  9. Prepare and submit Form B and Form C, which are usually prepared by the Court after the application submission.
  10. After submitting the required documents, the applicant will be issued a Money Lenders License, valid for one year and subject to annual renewal.

Renewing a Money Lender License:

  1. Submit an application for renewal.
  2. Obtain the Money Lenders Ordinance (Form B) from the Magistrate Court.
  3. Complete and endorse Form C from the Chief Magistrate court.
  4. Provide the previous license that was issued.
  5. Update the tax clearance.
  6. Provide evidence of payment of the renewal fee.
  7. Undergo inspection and re-visitation.

Timeline:

The process for obtaining a money lender license in Abuja typically takes between 2 to 4 weeks. However, this timeline might be extended if all the required documentation is not submitted correctly.

It’s important to note that the information provided is based on your input, and it’s recommended to consult official sources and legal experts to ensure accuracy and compliance with any potential changes in regulations. Additionally, regulations may differ for other regions in Nigeria.

By DAMILOLA AYODELE

For O&COLAW