How to register a money lending business in Nigeria?

How to register a money lending business in Nigeria?

If there’s one thing people always need, it’s money. It doesn’t matter how much we have. We always need more. As a result, people often find themselves in need of a loan. That’s when the money lending business comes in. If you would like to know how to start this type of company in Nigeria, continue reading below.

Successful bussinesman

Money Lending Business

Money Lending

Before we begin explaining the registration process of a company in Nigeria, let us answer the question - what does “lending” mean? It is the process of giving another person money with the agreement that it will be paid back, usually with interest.

Money lending businesses survive on the idea that the person loaning the money will pay an interest rate as a price for the loan. Lending money is often a risky thing to do, especially to new businesses. Thus, the interest rates can be substantial to cover the potential danger of losing an investment. The secret of a successful money lender lies within his ability to know which people deserve a loan and which can only cause trouble in the future.

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If you are interested in opening your very own money lending company and you can use your finances as a starting fund, we recommend opening a private lending business. In this case, your interests are much higher than if you were using broker’s funds and running a hard money lending operation. Money lenders offer their services via checks cashing, advances on paydays, loans, and other small credit services, which can’t be provided by large banks.

Man lending money

Here’s a list of the things you need to keep in mind if you’re planning on starting a money lending company:

  • Make sure that interest rates are appropriate to the risks involved in the loan;
  • Start with a small market to be competitive;
  • Have at least two or three sources that confirm the credibility of your client;
  • Be sure to check the insurance provided by the customer;
  • Have a clean, professional office space;
  • Maintain a friendly environment to show your clients that they can trust you;
  • Always document every detail of your loan;
  • When the time is right – expand;
  • Don’t create artificial geographical limits for your company.

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We’ve covered the basics of what a money lending company is and what are its most important parts. Now let’s talk about the money lenders in Nigeria.

Money Lenders in Nigeria

Money Lender company office

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Whether you’re going to register your own business, or you want to take a loan yourself, it’s useful to know which money lenders are already established in Nigeria. This way you can scout and examine your competition and learn a few tricks about what makes a money lender operation successful.

For this purpose, we’ve prepared a small list of the Top 7 Online Money Lending Companies in Nigeria.


The first company on our list has already made a name for themselves in the Nigerian market. Lidya allows small amount loans between $500 and $15,000.


KiaKia offers a fast and elegant solution to people in need of a loan. Thanks to their top-notch technology and algorithms they can offer their lending services to thousands of people across Nigeria.

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OneFi is an online money lender that provides 3-6 month loans to individual customers that are considered trustworthy.


QuickCheck is one of the first lending companies to use mobile technology to give their clients an opportunity to borrow up to 30,000 Naira for fifteen days or a month.

Loan application


Zedvance is a money lending operation that is focused on offering loans up to N3,000,000 to individual clients within a day.

6. C24

C24 Limited is an online lending business that strives to grant people a chance to open their new business.


Paylater is an online-exclusive money lending business that offers short-term borrows in Nigeria. They offer loans up to N500,000 within three days.

Suitcase full of money

Tip: Before applying for a loan on any of these platforms be sure to read their Terms & Conditions to avoid any problems.

So you know the companies you will compete against. Be sure you know what they do to know how 'to fight' them. Now let’s talk about the registration process of a money lending business in Nigeria.

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How to register a company in Nigeria

Company registration

Starting your own business is a hard thing to do. It’s daunting to think about how much money and effort it takes. Remember, there are both correct and incorrect paths you can take while setting up your business. The first thing you have to ensure is that your documentation is flawless. This goes both for the legal and accounting sides of your business. Hiring a lawyer is a great way to simplify this task, but it does require additional funds.

To register a new company you need to obtain all the necessary licenses from the government. Thankfully, we live in the 21st century, so the majority of the registration process can be done online. Visit the Corporate Affairs Commission website. Find the “Registration of Company” tab in the Services menu and you’ll be in six short steps of completing the registration of your business:

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  • Company Name Reservation;
  • CAC1.1 Pre-Registration Form;
  • Paying the Filing Fee and the Stamp duty fee;
  • Document Scans (CAC1.1, MEMART, Proficiency certificate, Form of Identification for Director\s and Secretary, Stamp Duty Certificate, Evidence of CAC payment)
  • Uploading the documents mentioned above;
  • Submitting the originals of these documents to a CAC office of your choosing.
Lend! sign

If you want to register a money lending business, then you have to study the Money Lending Law in Nigeria. As you can see there, you need a separate license to offer money loans. The process of receiving such a permit involves three stages, each with a number of steps.

Stage 1 – Apply to the Magistrate Court with the following documents:

  • Application letter
  • Certified Copies of the CAC Form 2 and 7
  • Memorandum and Articles of Association of the company
  • Certificate of Incorporation
  • Tax and Police Clearance
  • Evidence of Maintenance of a current Bank account

As a result, you will receive a letter from the Magistrate Court Registry and Form B of the Money Lenders ordinance.

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Stage 2 – Apply to the Ministry of Home Affairs and Tourism

This stage involves the following steps:

  • Pay a fee of 10,000 Naira for the purchase of the Money Lender certificate
  • Collect an invoice for a sum of 50,000 Naira from the Ministry.
  • Submit the Application with the covering letter, Form B and Form C from the Magistrate Court, the Police report from Commissioner of Police, a 3-year Income Tax Clearance Certificate, the PAYE Certificate, the Certificate of Incorporation and the evidence of payment of application fees.
Loan money income

Stage 3 – Visitation

Later, an inspection from the Ministry will visit the registered office address to investigate your operation. Following the inspection, you will finally be given the Money Lending permit.

Upon receiving your license, we recommend you acquire the following things that will help you at the beginning of your path:

  • A money lending operational manual from a professional banking expert;
  • All the necessary forms and accounting documentation essential to a money lending company;
  • A basic electronic system to streamline the loan-giving process;

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It’s also important to discuss the contract you’re offering to your clients with a lawyer so that the clients won’t be able to find any loopholes and leave you empty-handed.

Money stack

As a closing note, we advise you to seek the help of professionals if you can afford it, as starting a company is not something that can be done alone.

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