As Nigeria’s financial services landscape continues to evolve, regulatory compliance remains a cornerstone for sustainable operations. In line with this, moneylenders and digital lending platforms across the country are reminded of the mandatory annual renewal of their operational licences, a requirement that has become increasingly standardised across most states in Nigeria.
The operational licences of moneylenders and digital lenders in most Nigerian states particularly in Lagos and Abuja are now deemed to expire on the 31st of December each year. Effective from 1st January 2026, all moneylenders and digital lending companies are required to reapply for the renewal of their licences through their respective state licensing authorities. This reapplication process is not merely a formality it is a critical compliance step that ensures, continued legal operation within the state, alignment with updated regulatory frameworks, verification of ethical lending practices and protection of consumer rights and data.
The procedure for renewal of a money lender licence is similar to that of a fresh application for the licence. There are, however, slight differences in the requirements for a licence renewal application which must be observed carefully to avoid undue delays or potential refusal of the application.
Licence Renewal In Lagos State
In Lagos State, an moneylender company is required to submit an application to the Magistrate’s Court for a new money lender certificate and thereafter make a separate application to the Ministry of Home Affairs and Tourism (“Ministry”) for the renewal of the moneylender licence. Whilst the application to the Magistrate’s Court may be pretty straightforward, the application to the Ministry may sometimes be problematic if not well handled. This is because the Ministry will conduct an inspection of the loan company’s office to check its books and interview its directors and management staff as well as verifying all submitted tax clearance certificates (“TCC”) before renewing the company’s licence.
Upon receipt of an application for renewal of money lender’s licence, the Ministry will review and verify the authenticity of the following documents which every loan company must submit in support of its application for licence renewal, namely:
- Money Lender Certificate from the Magistrate’s Court,
- Three (3) years’ tax clearance certificate (including the current year) of the directors and the company,
- Proof of the company’s signage which must be well displayed within the loan company’s premises,
- Copy of the company’s previous money lender’s licence,
- Evidence of remittance of the employee tax of the loan company’s workers to the Lagos Inland Revenue Service (“LIRS”), and
- Payment of Renewal Fee (note: the Ministry is currently reviewing the Renewal Fee which will be officially communicated to the public in January 2023).
- Immigration permits such as business permit (for a foreign owned loan company), Combined Expatriate Resident Permit and Alien Card (“CERPAC”), Quotas Returns and Expatriate Tax Assessment.
Troubles may arise during the review of the above requirements if they are not genuine or satisfactory to the Ministry. The Ministry will contact the responsible agencies for the confirmation of the above requirements and satisfy itself that the documents submitted by a loan company are genuine and compliant. Where there is any deficiency, the application for renewal of money lender’s licence may be refused or delayed till when the loan company complies with any outstanding or rectifies the deficiency in the requirements submitted to the Ministry.
Additionally, if there has been a change in company directorship, the Ministry must be notified. Supporting documentation from the Corporate Affairs Commission (CAC) confirming such changes must be submitted.
Licence Renewal In Abuja
Compared to Lagos, the renewal process in Abuja is relatively less bureaucratic. The application is submitted directly to the Magistrate’s Court, accompanied by the following documents:
- Company incorporation documents;
- Police clearance reports for the directors of the company;
- Copy of the existing Money Lenders’ licence and certificate;
- Tax Clearance Certificate of the company;
- Affidavit of facts of one Director;
- Proof of operating bank account with a commercial bank in Nigeria,
FCCPC Re-Registration Requirement for Digital Lenders
Protection Commission (FCCPC) now mandates all digital lenders with existing approvals to re-register under the new Digital Electronic Online and Non-Traditional consumer Lending Regulation 2025 (“the Regulation”). FCCPC has set Monday, 5th January 2026, as the deadline for full compliance with the Regulation. Failure to re-register will result in operational restrictions and may attract additional sanctions as permitted by law. To know more about the exposure of digital lenders under the new FCCPC regulation click here.
Moneylenders and digital lenders are advised to begin preparations early to ensure a smooth renewal process. Engaging with legal and compliance professionals, updating internal policies, and maintaining open communication with licensing authorities will be key to maintaining operational continuity in 2026 and beyond.
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About KORIAT & CO.
We are a commercial law firm in Nigeria with network of lawyers and consultants in Ghana, Kenya and Rwanda. The above article is not legal advice and does not automatically make our readers our clients unless they specifically instruct us to act or represent them in any way.
We assist local and foreign clients to process company registration and business licences in Nigeria, Ghana, Kenya and Rwanda.
Please contact Koriat & Co. through admin@koriatlaw.com or 09067842241 if you require additional information about or assistance in processing company incorporation or application for a money lender’s licence.
