{"id":5206,"date":"2022-07-01T16:00:57","date_gmt":"2022-07-01T16:00:57","guid":{"rendered":"https:\/\/koriatlaw.com\/?p=5206"},"modified":"2022-07-01T16:00:57","modified_gmt":"2022-07-01T16:00:57","slug":"moneylenders-licence-in-oyo-state-requirement-cost-procedure-and-timeline","status":"publish","type":"post","link":"https:\/\/koriatlaw.com\/2026\/2022\/07\/01\/moneylenders-licence-in-oyo-state-requirement-cost-procedure-and-timeline\/","title":{"rendered":"MONEYLENDER\u2019S LICENCE IN OYO STATE: REQUIREMENT, COST, PROCEDURE AND TIMELINE"},"content":{"rendered":"\n
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1. Introduction<\/em><\/strong><\/p>\n\n\n\n

The licensing of a money lender company in Oyo State is one of the functions\nof the Ministry of Trade, Investment and Cooperatives (\u201cMinistry\u201d) of the Oyo State\nGovernment. The Ministry would issue a moneylender company a professional\/business\npremises registration certificate, which serves as a licence for the company to\noperate moneylending activities within the Oyo State.<\/p>\n\n\n\n

Before applying to the Ministry, the applicant company for moneylender\u2019s licence must be\nregistered as a private limited liability company with the CAC. Although the minimum\nshare capital with which the company is to be\nregistered is not specified by the Ministry, it is advisable that the share capital of a moneylenders is not less than N20 Million and should have at least two (2) Directors. See our earlier article for the general requirements\nfor incorporation here<\/a><\/em><\/strong>.<\/p>\n\n\n\n

2. <\/strong><\/em>Applicable Costs for Incorporating a Money Lenders Company<\/strong><\/em><\/strong><\/em><\/p>\n\n\n\n

The costs of incorporation of a company\nin Nigeria are usually dependent on the amount of share capital of the company.\nThis is because the share capital of a company attracts a stamp duty (payable\nto the Federal Inland Revenue Service) in addition to the incorporation or\nfiling fee chargeable by the CAC.<\/p>\n\n\n\n

The total of incorporation costs of a\nMoney Lender company (i.e. a N20 Million share capital company) in Nigeria is\nabout N305,000 (Three Hundred and Five Thousand Naira). The foregoing sum\nentails the CAC Registration Cost and Stamp Duty chargeable by Federal Inland\nRevenue Service (\u201cFIRS\u201d).<\/p>\n\n\n\n

The incorporation by CAC costs about\nN105,161.25 (i.e. this is calculated by paying N10,000 cost for the first 1\nmillion of the 20 million share capital and, then, paying N5,000 cost for every\nsubsequent N1million of the remaining 19 million share capital, which will then\nmean N5,000 multiplied by 19, plus the initial N10,000 which ultimately equals\nto N105,000). <\/p>\n\n\n\n

Also, as already mentioned above, stamp\nduty of N153,050 is payable to the Federal Inland Revenue Service on the N20\nmillion share capital (this sum is determined by multiplying 0.75% by\n20,000,000). <\/p>\n\n\n\n

Both payments above are payable using\nthe Federal Government Remita<\/em>\npayment platform which charges about N161 per payment.<\/p>\n\n\n\n

Post-incorporation costs for obtaining\nthe certified true copy of already registered company\u2019s documents and other\nmiscellaneous expenses should not exceed N50,000.<\/p>\n\n\n\n

3. Licensing Procedure and Costs<\/em><\/strong><\/p>\n\n\n\n

The procedure for\napplication of an operational licence for moneylender are in two phases, one\napplication is done at the Ministry and the other at the Magistrate Court.<\/p>\n\n\n\n

i. Requirements for the application to the Ministry <\/em><\/strong><\/p>\n\n\n\n

As mentioned above,\nthe Ministry issues a professional\/business premises registration certificate\nwhich serves as operational licence for money lending companies to operate\nwithin the state. <\/p>\n\n\n\n

The procedure\nfor acquiring the licence is as follows:<\/p>\n\n\n\n

(a.) An application\nletter in the prescribed form on the\nletter head paper of the company is addressed to the Honourable Commissioner of the\nMinistry of Trade, Investment & Cooperatives.<\/p>\n\n\n\n

(b) Accompanying the application letter are copies\nof the Certificate of Incorporation, the Memorandum and Articles of Association\n(\u201cMEMART\u201d) of the Company and other CAC documents\nshowing the share capital of the company, the shareholder(s), the director(s),\ncompany secretary and other particulars. Please note that the MEMART must\ncontain an object to the effect that the Company engages in the business of money lending services;<\/p>\n\n\n\n

(c) Three (3) years Tax Clearance Certificate of at least two (2)\nIndividual directors of the Company. Please note that it is required that the company must have at least two (2) adult\ndirectors.<\/p>\n\n\n\n

(d) Payment of\nregistration fee.<\/p>\n\n\n\n

ii.\nRequirements at the Magistrate Court<\/em><\/strong><\/p>\n\n\n\n

(a) The first step here is to apply to the Chief\nRegistrar of the Magistrate\u2019s Court for a money lender\u2019s licence.<\/strong><\/p>\n\n\n\n

(b) Certified\nTrue Copies of the Certificate of Incorporation, the Memorandum and Articles of\nAssociation (\u201cMEMART\u201d) of the Company and other CAC documents showing the share capital of the\ncompany, the shareholder(s), the director(s), company secretary and other\nparticulars of the company should accompany the application letter.<\/strong><\/p>\n\n\n\n

(c) Also\naccompanying the application letter are the following: <\/p>\n\n\n\n