₦airaland Forum

Treash:
A money lender is any person who lends money at interest or who lends money in consideration of a larger sum to another. The Law requires money lenders to obtain a moneylenders’ licence. Decisively, the law further criminalizes money lending business without license.

WHAT QUALIFIES A PERSON AS A MONEY LENDER IN LAW?

The court decided 2-3 condition precedents in holding that a person is a money lender.
1. The body is a business whose primary objective is
money lending.
2. The body holds itself as a money lender.
The mere fact
that a person gives out a loan with interest or in return for a higher amount does not make the person a money lender, unless the two conditions are fulfilled.

In Lagos, the Lagos State Money Lenders Law is the principal law which regulates money lending in the state and the authority responsible for issuing licenses is the Lagos State Ministry of Home Affairs and Tourism

REQUIREMENTS FOR MONEY LENDING IN LAGOS.
A potential investor is expected to incorporate a company before he can be granted a license to operate as money lender, and as such, must meet certain paper requirements which includes: Incorporation Documents, police clearance report of all directors, applicant banker's reference letter, 3 years Tax Clearance certificates of each director and so on. The police character certificate will state whether the director of the company has been convicted for any or not.

In the course of application, such investor is expected to apply to a Chief Magistrate for an Ordinance which will then proceed to Ministry for grant of license.

Upon satisfactory review of the above-listed documents, the officials of the Ministry will conduct a visit to the official address of the Applicant. Once the ministry is satisfied with all compliance, a license will be issued. The license issued is renewable every year.

It should be noted, that the court has power to review excessive loan interest. In an occasion, the court viewed that 50% interest per annum is high.

Treash:
A money lender is any person who lends money at interest or who lends money in consideration of a larger sum to another. The Law requires money lenders to obtain a moneylenders’ licence. Decisively, the law further criminalizes money lending business without license.

WHAT QUALIFIES A PERSON AS A MONEY LENDER IN LAW?

The court decided 2-3 condition precedents in holding that a person is a money lender.
1. The body is a business whose primary objective is
money lending.
2. The body holds itself as a money lender.
The mere fact
that a person gives out a loan with interest or in return for a higher amount does not make the person a money lender, unless the two conditions are fulfilled.

In Lagos, the Lagos State Money Lenders Law is the principal law which regulates money lending in the state and the authority responsible for issuing licenses is the Lagos State Ministry of Home Affairs and Tourism

REQUIREMENTS FOR MONEY LENDING IN LAGOS.
A potential investor is expected to incorporate a company before he can be granted a license to operate as money lender, and as such, must meet certain paper requirements which includes: Incorporation Documents, police clearance report of all directors, applicant banker's reference letter, 3 years Tax Clearance certificates of each director and so on. The police character certificate will state whether the director of the company has been convicted for any or not.

In the course of application, such investor is expected to apply to a Chief Magistrate for an Ordinance which will then proceed to Ministry for grant of license.

Upon satisfactory review of the above-listed documents, the officials of the Ministry will conduct a visit to the official address of the Applicant. Once the ministry is satisfied with all compliance, a license will be issued. The license issued is renewable every year.

It should be noted, that the court has power to review excessive loan interest. In an occasion, the court viewed that 50% interest per annum is high.