Can I be a lender in Nigeria without holding a formal license? This is a common question for individuals who want to offer personal loans or invest in lending as a side activity. Lending is a regulated business in Nigeria, with rules set by both the Central Bank of Nigeria (CBN) and state governments.
The CBN issue microfinance bank, finance house, and commercial bank licenses as the primary means of regulating lending. States, on the other hand, license cooperatives and money lenders.
While individuals may lend without getting a license from the CBN or a state, they still need to follow state lending laws. These rules apply even if the lender operates informally.
To qualify as an individual lender, your main business must not be lending. Lending should only be a secondary activity, not your primary source of income or business focus.
Read further: 5 tips that can help you become a more efficient in lending