How to Start Money Lending Business in Nigeria


The money lending industry is currently experiencing high demand and is expected to continue to do so. This is primarily due to the prevailing economic situation in Nigeria, where a significant portion of the population is living in poverty and relies on borrowing for their survival.

Additionally, the presence of numerous small and medium enterprises (SMEs) across the country contributes to the increased demand for money lending services.


Many of these SMEs face a lack of funding, presenting a business opportunity for those willing to provide financial support.

However, like any business venture, it is crucial to understand how to start a money lending business in Nigeria and successfully complete the registration process. Continue reading to learn the necessary steps.

What capital is required to start a money lending business in Nigeria? As of now, the share capital required for a money lending business should not be less than N20 million. This ensures that businesses have sufficient capital to commence operations, considering that in this line of business, a substantial amount may need to be lent out before generating profits.


Therefore, having enough capital is crucial to cover initial operating costs. You can explore other business ideas in Nigeria as well.

How to register a money lending business in Nigeria Registering a new company in Nigeria generally follows the same procedures as registering with the Corporate Affairs Commission (CAC). However, in the digital age, most of the process can be completed online. Here are the steps involved:

  1. Visit the Corporate Affairs Commission website at and complete the following:
  • Reserve a company name.
  • Fill out the CAAC 1.1 pre-registration form.
  • Pay the required filing and stamp duty fees.
  • Upload the requested documents, including CAC1.1, MEMART, Form of Identification for directors and Secretary, proficiency certificate, stamp duty certificate, and evidence of CAC payment.
  • Finally, submit the originals of these documents to any official CAC office.

To register a money lending business, you must also complete the following processes:

Step 1:

  • Apply to the magistrate court and submit the following documents:
    • Application letter.
    • Certificate of incorporation.
    • Tax and police clearance.
    • Memorandum and articles of association of your company.
    • Evidence of maintaining a current bank account.
    • Certified copies of CAC form 2 and 7. If your application is successful, the magistrate court registry will provide you with a letter and Form B of the money lending ordinance to proceed.

Step 2:

  • Apply to the Ministry of Home Affairs and Tourism by following these steps:
    • Pay 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 involves a visitation and inspection of your business office by the ministry. Once the inspection is successfully completed, you will receive your Money Lending Permit. Additionally, to prepare your business further, consider obtaining the following:
    • A money lending operational manual.
    • All the necessary forms and documentation essential in the money lending process.
    • A reliable electronic system for a fast and responsive loan approval process.

Seeking legal assistance and consulting with professionals is advisable when starting this type of business, as it requires expertise.

Conclusion: Beyond the registration process, running a money lending business demands effective management and strategic planning. While this article does not delve into those aspects, it is crucial to have them in place. As long as you possess all the required documents, registering a money lending company in Nigeria is a straightforward process.


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