The Ministry of Home Affairs and Tourism (“Ministry”) of the Lagos State Government has renewed the operational licence for digital lending business for our client, Igho Finance Limited. This renewal of the digital lending licence is a confirmation of the company’s compliance with regulatory standards and best practices in digital lending business in Nigeria. You can also read more on the subject of money lending licensing requirements and operations in our previous articles below:
1. HOW TO SET UP A DIGITAL LENDING BUSINESS IN LAGOS STATE.
2. KEY POINTS ON RENEWAL OF MONEY LENDERS’ LICENCE IN LAGOS
In order to undertake the business of digital lending in Lagos State, a business promoter must first be registered as a limited liability company with N20 Million share capital, obtain the money lender certificate from a Magistrate’s Court of Lagos State and the operational licence of the Ministry as well as the approval of the Federal Competition and Consumer Protection Commission (“FCCPC”). It is important to mention that proofs of registration with the Money Lenders Association (“MLA”) and the Nigerian Data Protection Bureau (“NDPB”) are necessary requirements, amongst others, for the registration of a digital lending business with the FCCPC.
It is important to add also that without obtaining the required digital lending certificate, licence and approvals, the operators of a digital lending business may be unable to enjoy the necessary business cooperation of the financial institutions in Nigeria including the payments companies who may refuse to process the lending company’s disbursements to its borrowing customers. Please note that all illegal operators of digital lending businesses in Nigeria are liable to police raids, arrests, prosecution and punishments (if found guilty) including jail term for directors and staff, forfeiture of assets and deletion of the company’s lending Apps from the Google’s Playstore, amongst others.
Whilst the FCCPC registration is once and for all time (except for a revalidation of digital Apps which the FCCPC may require whenever it deems necessary for peculiar cases or companies), the money lending certificate of the Magistrate’s Court and the licence of the Ministry are renewable yearly as they expire on 31st of December of the year of issuance.
Please read more about Money lending licence below:
