Been looking for how to get money lending license in Nigeria as a potential entrepreneur who maybe had been brooding over the decision of delving into the financial industry or any related business that has to do with lending or collecting money in this green country.
Well, as it is known that before one goes into starting a business or anything at all anywhere in the world, there is one very good step that needs to be taken into planning and that is the collection of the license to operate. This usually comes immediately after the registration of the particular company.
In recent years, Nigeria has experienced significant advancements in internet technology, leading to the growth of various online services, including online money lending. These advancements have transformed the financial landscape in the country, providing easier access to credit and financial services for individuals and businesses.
The money lending business currently is, and would keep being, one of the services in high demand. This is because according to the current economic situation in Nigeria, the majority are poor. Therefore, they look to borrowing for survival. However, a major part of the high demand for money lending services is because of the presence of many SMEs around the country.
Registration
Registering a new company in Nigeria largely follows the same procedure as registering with the Corporate Affairs Commission. However, since we are in the digital age, a majority of the process can be done online. Firstly, you have to visit the Corporate Affairs Commission at https://www.cac.gov.ng/ and do fill in the following:
- Company name reservation
- CAAC 1.1 Pre-registration form
- Payment of filing and stamp duty fees
- Uploading of requested documents, which include:
- CAC1.1, MEMART, Form of Identification for Directors and Secretary
- Proficiency certificate
- Stamp duty certificate
- Evidence of CAC payment
You would also need to submit the original of those documents to any official CAC office
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Finding Money Lending License in Nigeria
Ever been in search of how to get money lending license in Nigeria, here are the needed info which is an absolute outline of the answer to your question:
- Register Your Company Documents
Every money lending company operating in Nigeria must be registered with the Corporate Affairs Commission (CAC). Money lending activities must be included in the objectives of the company. A lending company seeking an FCCPC registration must provide its incorporation documents and details of its officers and beneficial owners.
- Register with the MLAN
Before submitting for FCCPC registration, a money lending company must register with the Money Lending Association of Nigeria (MILAN).
- Run Data Auditing and Prove Evidence of Compliance
Before a registration application can be submitted to the FCCPC, the commission mandates all lending companies to engage in the data auditing process and obtain evidence of compliance from the Nigeria Data Protection Commission. Consequently, every lending company is required to appoint a Data Protection Compliance organization (DPCO), which shall train the company on the importance and management of data.
- Apply for Registration with FCCPC
Under the Federal Competition and Consumer Protection Commission (FCCPC) Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022, online money lenders companies must provide the following requirements for registration with the FCCPC.
- Certified copy of the certificate of incorporation of the company
- A brief description of the business of the Applicant and where relevant, their groups.
- Organogram showing role players and location of key role players and any operational approving authorities/person.
- Name and address of a person within the business who is authorized to accept all correspondence and accept service on behalf of the business.
- Evidence of membership in any trade or professional associations.
- Any service level agreements with any service providers with respect to operations but excluding administration.
- Evidence of feedback and complaint resolution mechanism
- Evidence of tax payments or tax waivers where applicable
- Evidence of data audit and Data Protection Impact Assessment (DPIA).
- All applicable fees associated with service
