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.
What are the procedures for obtaining a Money Lending License 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
- 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;
- Police clearance certificates of the directors of the company;
- An application letter;
- Money Lenders Certificate Forms B and C from the Magistrate’s Court;
- Passport Photographs of directors of the company;
- Evidence of tax payment for all directors (for 3 years);
- Reference letter from the applicant’s bank;
- Proof of payment of the Money Lenders License application fee;
Renewal of License
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
- Application for renewal
- Moneylenders ordinance (form B) from Magistrate Court
- Duly completed as well as endorse (form C) from Chief Magistrate court
- The previous license issued
- Updated tax clearance
- Evidence of payment of renewal fee.
- 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
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