How to Obtain a Money Lender’s License in Lagos State, Nigeria

How to Obtain a Money Lender’s License in Lagos State, Nigeria

October 22, 2025

Starting a money lending business in Lagos can be a profitable venture but it’s also a regulated activity. To legally operate as a lender, you must obtain a Money Lender’s License under the Money Lenders Law of Lagos State. This license ensures compliance with financial regulations and protects both lenders and borrowers.

Below is a step-by-step guide on how to obtain your money lender’s license in Lagos State.

1.     Understand Who Needs a Money Lender’s License

Any individual or company that engages in the business of lending money to others for profit whether through loans, advances, or credit facilities must obtain a money lender’s license.
However, banks, microfinance institutions, and cooperative societies licensed by the Central Bank of Nigeria (CBN) are exempt.

2.     Legal Basis

The licensing process is governed by:

  • Money Lenders Law of Lagos State (Cap M7, Laws of Lagos State 2015)
  • Money Lenders Regulations 1997

These laws empower the Lagos State Ministry of Home Affairs and the Magistrate Court to issue licenses to qualified applicants.

3.     Prerequisites Before Application

To apply for a license, you must first have:

  • A registered company with the Corporate Affairs Commission (CAC).
  • An object clause in your Memorandum of Association permitting lending or financing activities.
  • A registered business addressin Lagos State.
  • Relevant KYC and corporate documents(CAC forms, TIN, utility bill, ID of directors, etc.).

4.     Step-by-Step Application Process

Step 1: Apply to the Chief Magistrate Court

  • Submit an application for a Letter of Authority to Operate as a Money Lender.
  • The application includes company details, directors’ names, and nature of the business.
  • The court may conduct a brief background check or require an appearance.

Step 2: Obtain Police Clearance

  • Directors are required to obtain police clearance certificates confirming no criminal record.

Step 3: Apply to the Lagos State Ministry of Home Affairs

  • With the Magistrate’s letter of authority, apply to the Ministry for the Money Lender’s License.
  • Attach all supporting documents, including the court order, CAC documents, and police clearance.

Step 4: Pay Statutory Fees

  • Payment of the prescribed license fee(which varies yearly).
  • Proof of payment must be attached to your submission.

Step 5: Inspection & Approval

  • The Ministry may inspect your business premises to confirm it is suitable for a lending operation.
  • Upon satisfactory review, the Money Lender’s Certificate and Licenseare issued.

5.     Duration and Renewal

  • The Money Lender’s License is valid for one year and must be renewed annually.
  • Renewal follows a simplified version of the initial process and payment of renewal fees.

6.     Penalties for Non-Compliance

Operating without a valid license constitutes an offense under Lagos law.
Penalties include fines, closure of business premises, or imprisonment.

In addition, unlicensed lenders cannot legally enforce loan repayment in court.

7.     Professional Support

Given the procedural steps and multiple agencies involved, engaging a lawyer or compliance consultant experienced in regulatory licensing can save time and ensure full compliance.

Obtaining a Money Lender’s License in Lagos State is essential for any business seeking to engage in lawful lending. With the right documentation and guidance, the process is straightforward and ensures your operations are recognized and protected under Nigerian law.

If you’re considering starting a lending business or need help securing your license, 618 Bees can guide you through each step from company registration to license application and renewal support.

 

We hope you find this information helpful. Feel free to reach out to us via our dedicated Call Centre lines; +2349017190079/08080819653 (WhatsApp available) or 01-2803791 or by email via hello@618bees.com. We look forward to assisting you with all of your business and compliance filings. Contact us today!

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached

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