How to start a money lending business in Nigeria

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 SME around the country. A majority of these SMEs lack funding and you can make a business out of providing it. However, like all businesses, you first have to know how to start a money lending business in Nigeria, and also successfully complete the registration. Read on to know just how. 

How much do you need to start a money lending business in Nigeria?

At the time of writing, the share capital of a money lending business must not be less than N20 million. This is to only approve businesses with enough capital to actually start running. The money lending business works in such a way that you might have to lend out a lot before profit. Therefore, as a result, you need to have enough capital to cover the running cost at the start. You can check out some other business ideas in Nigeria.

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How to register a money lending business in Nigeria

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 and do fill the following:

  1. Company name reservation
  2. CAAC 1.1 pre-registration form
  3. Payment of filing and stamp duty fees
  4. Uploading of requested documents, which includes:
  5. CAC1.1, MEMART, Form of Identification for directors and Secretary
  6. Proficiency certificate
  7. Stamp duty certificate
  8. Evidence of CAC payment

Finally, you would also need to submit the original of those documents to any official CAC office

Now, for a money lending business registration, you have to complete the following processes:

Step 1:

Apply to the magistrate court, where you would be required to submit the following

  • Application letter
  • Certificate of incorporation
  • Tax and police clearance
  • Memorandum and articles of association of your company
  • Evidence of maintenance of a current bank account
  • Certified copies of the CAC form 2 and 7

If successful, the magistrate court registry would give you a letter and Form B of the money lending ordinance to proceed.

Step 2:

application to the Ministry of Home Affairs and Tourism through the following steps:

  • Payment of N10,000 to purchase the money lender certificate
  • Collect an invoice of N50,000 from the Ministry
  • Finally, submit your application with the following documents:
  • Form B and Form C from the Magistrate court
  • Evidence of payment of application fees
  • Certificate of incorporation
  • Police report from the commissioner of police
  • PAYE certificate
  • A 3-year income tax clearance certificate

Step 3:

This step simply involves visitation and inspection of your business office by the ministry. Therefore, on successful inspection, you would receive your Money Lending Permit. Also, for further preparations, you can obtain the following as it would help your business:

  • A money lending operational manual
  • Get together all the necessary forms and documentation essential in the money lending process
  • A decent electronic system for fast and responsive loan giving process.
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Also, a good rule of thumb is to seek legal help and also that of other professionals too. More so, this is because starting this kind of business requires expertise.


Beyond the registration level, running a money lending business requires good management and strategy. However, although this article does not discuss that, you should get them in place. As long as you have all the necessary documents, registering a money lending company in Nigeria is straightforward.

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