Money Lending is regulated by various laws existing in the individual states where the business operates from.
The Money lending business is regulated by the MONEY LENDERS’ LAWS OF LAGOS STATE, THE MONEY LENDERS’ ACT, CAP 525 LAWS OF FCT VOL 3 2007 in Lagos and Abuja respectively.
PROCEDURE FOR OBTAINING THE MONEY LENDER LICENCE
The procedure for obtaining the money lenders license is one and same all over the country. There are basically three (3) main steps one must take to obtain the license.
1. Apply to the Chief Magistrate within the jurisdiction where the business operates. The document needed for this application are:
a) A cover letter (i.e. an application Letter for Moneylenders license addressed to the
Chief Magistrate on a Letterhead paper with the company seal affix to the letter). b) A copy of the incorporation documents of the company, status report and memart
c) Tax Clearance of the Individual or Corporate Body [Obtained from Federal Inland Revenue Service- FIRS] and if it’s a new company- provide proof that you are a registered tax payer.
d) Police Clearance of the applying individual/ directors of the company (Applicable in
e) Evidence of Maintenance of current account under a licensed Bank.
f) Three years tax clearance for at least 2 directors of the company where the applicant is a company.
g) Passport Photograph and Identity Card of the applicants
2. After submission of the above mentioned documents, the Magistrate will issue a Form B and Form C as pre-condition for obtaining the license. Thereafter, the applicants are to make a formal application to the Ministry of home affairs and tourism (this step is only applicable to Lagos), make the necessary payment into a designated account.
3. Subsequently, an inspection of the registered address of the company will be scheduled and afterwards license will be issued.
4. Please note that the last 2 steps only apply to Lagos State. For some state, license is issued upon application to the Chief Magistrate and making the requisite payment.
This legal opinion is by no means exhaustive, it is advised, you visit a legal consultant to guide you through the process of obtaining a money lenders’ license.
Written by Ifeanyi Ugwumba
Associate, Starlion Legal
For: Starlion Legal