13 Jan Registration of Money Lenders Licence (Lagos State)
A money lender licence can be granted to a person or business whose sole business is lending money with the expectation of a higher amount in return. Money lender licences are regulated by the various states money lending laws in Nigeria. The license is granted for a period of one-year term, expires 31st of December ever year and can be renewed. The licence can be applied for by an individual or a company.
Steps and Procedure in acquiring a Money Lenders Licence
The applicant applies to the Magistrate court (addressed to the Chief Magistrate) and if the company is the applicant, the cover letter of the application should be on the letterhead of the company with the company seal affixed to the letter. The application is to ascertain that the applicant is of good character and fit to manage the money lending business. The cover letter will be accompanied by relevant documents.
If the application is successful, the applicant will be issued
- Letter from the Chief Magistrate addressed to the Permanent Secretary of the Ministry of Home Affairs, confirming due compliance, and recommending the issuance of the money lenders certificate.
- Forms B and C of the Money Lenders Ordinance 1938.
The applicant after acquiring the required court documents, will apply to the Ministry of Home Affairs and Tourism along with the documents earlier submitted at the magistrate above.
The applicant will also be required to make payment of N25,000 for the purchase of the application form required for the regularization of Money Lenders Certificate, with attesting receipt to evidence and N200,000 for the payment of Money Lenders fees to the government account while making the above application.
The government officials on an agreed date will physically visit and inspect the premises and officers of the applicant (and books and records if the applicant has already commenced operations). If they conclude to their satisfaction that the company complies with the statutory requirements, the company will be issued with the money lending license certificate.
Renewal of Money Lenders Licence.
As said above, the licence is granted for a term of one year and can be renewed. The effect of not renewing the licence is that it makes it difficult for the lender to bring an action in court to recover loans from a defaulting borrower.
Berkeley Legal advises on incorporation of financial institutions and provide regulatory advice to enable our clients obtain make informed business decision and obtain a Money Lender licence in the various States of Nigeria.
The information provided in this article is for general informational purposes only and does not constitute legal advice. If you require specific legal advice on any of the matters covered in this article please contact firstname.lastname@example.org