REQUIREMENTS AND PROCEDURE FOR THE REGISTRATION OF A MONEY LENDING COMPANY IN NIGERIA

The article specifies the necessary requirements and procedures that must be complied with before a money lending company can be dully registered in Nigeria

CHAMAN LAW FIRM

6/2/2022 2 min read

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REQUIREMENTS AND PROCEDURE FOR THE REGISTRATION OF A MONEY LENDING COMPANY IN NIGERIA

Section 2 of The Lagos State Money Lenders Laws defines, a Money Lending as "Every person whose business is that of money lending or who carries on or advertises or announces himself or holds himself out in any way as carrying on that business whether or not that person also possesses or earns property or money derived from sources other than the lending of money and whether or not that person carries on the business as a principal or as an agent"; but shall not include:

  • Society registered Cooperative Society Law;

  • Statutory corporation empowered by law to lend money;

  • Banks or insurance companies or other licensed business which lends money in the course its operations; and

  • Licensed pawnbroker.

Under the Nigerian law, it is an offence to engage in a money lending business without the required government licence and anyone found engaging in any activity of money lending, whether or not with the required licence, will be presumed to be a Money Lender and held liable under the law.

However, it is important to mention that in Lagos State, a money lender certificate and licence are usually granted to a corporate applicant who meets the requirements set by the Ministry of Home Affairs (as discussed below).

REQUIREMENTS FOR OBTAINING MONEY LENDERS LICENSE

  1. A cover letter with the company seal affixed to it

  2. Evidence of maintaining an office by the company.

  3. Certified True Copy of all Incorporation Documents

  4. Certificate of Incorporation of the Company

  5. Tax Clearance Certificate for applicant; in case it's a newly registered business, then a proof that the business is actually a registered taxpayer.

  6. Three-year tax clearance for not less than two directors of the company Police Clearance Certificate for two directors of the company

  7. Reference Letter from a business bank

  8. Logo or Symbol of the Company

  9. Evidence of payment of renewal fee.

STEPS AND PROCEDURE FOR APPLYING FOR A MONEY LENDING LICENSE IN LAGOS

An application will be made in the prescribed form to the Chief Magistrate within the magisterial jurisdiction where the business will be carried on with the applicant’s letterhead Such application shall be supported with the relevant documents.

Upon the application to the Chief Magistrate, the applicant will be issued a letter and Forms B and C.

After obtaining the necessary court documents, the applicant is to make a formal application to the Ministry of Home Affairs and Tourism with the relevant documents.

The Applicant shall make a payment of the official fee into the Lagos State Government Account

The applicant shall also make payment for the Application Form with the Receipt evidencing payment.

The final stage includes the visitation and physical inspection of the intended office by government officials. Upon visitation, if the company in question is already operating in the money lending activities, the books will be inspected in addition to the office.

If the company complies with the statutory requirements and upon the government officials’ satisfaction, the applicant will be issued with the Money Lending Licence

NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact chamanlawfirm@gmail.com

WRITTEN BY CHAMAN LAW FIRM TEAM

EMAIL: chamanlawfirm@gmail.com

TEL: 08065553671, 08024230080