Nigeria: Central Bank Licenses Lending Apps to Regulate Borrowing

The evolution has allured intensive participation in the lending sector, stimulating the growth of the Nigeria Domestic Credit by 16.2 per cent year on year as of December 2021.

There is no lending limit for the MFBs, and the Central Bank of Nigeria charges N400,000 to N500,000 for their registration. Operations are limited to Lagos State.

The Money Lenders license is issued and regulated by the money lenders laws of the 36 states in Nigeria.

The business of lending in Nigeria has metamorphosized from the traditional system to a more digitally enabled flexible system for a faster and more convenient process.

The evolution has allured intensive participation in the lending sector, stimulating the growth of the Nigeria Domestic Credit by 16.2 per cent year on year as of December 2021.

The present state of the Nigerian economy, the need to expand for companies and businesses, and the insatiable desire for money to meet unending needs, has led to the exponential growth of lending apps in Nigeria.

Commercial banks, financial institutions and microfinance banks have evolved to meet these needs and demands for loans.

There are several regulations and licenses applicable to lending in Nigeria.

Money Lenders License.

The Money Lenders license is issued and regulated by the money lenders laws of the 36 states in Nigeria. The Money Lenders Law is the principal law regulating and issuing money lending licenses in the West African country... Read more on All Africa

Source: All Africa