How To Start a Lending Business in Nigeria [Guide]

Are you asking how to start a lending business in Nigeria? Well, you are at the right place, because this is what we will talk about today.

Nigeria or as many like to call it Naija, is a country on the West coast of Africa with a vast population.

Everyone needs money it doesn’t matter how much we have it’s never enough, this is where loans come in and the idea of money lending business.

Lending business of course is risky but we will talk about management software that will help you.

Besides risks come big rewards.

How to start a lending business in Nigeria

So what is lending?

It’s a process of giving another person,  group, or organization money to get it back with interest.

How profitable is a money lending business?

Very profitable considering the money you lend out isn’t the same amount you get back during payment.

With options like interest rates and penalties, the money you give out is guaranteed to grow as days go by.

What to consider:

  • Have a plan- don’t just start this business because you heard people are making money out of it.
  • Start small- to gain competition consider starting small, don’t begin lending out big chunks of money yet you haven’t established.
  • Make sure your interest rates align with the loan risks.
  • Have a documenting plan- keep all records of transactions done whether small or large.
  • Also a clean friendly environment- get clients to trust you and go spread the word about your business.
  • Have a credibility source- this helps you to check about a client whether they are eligible or risky.
  • Expand when time is right- you don’t have to be limited if your business is growing don’t limit expansion.
  • Don’t create artificial geographical limits for your business- if people from outside the country want to borrow have a plan that will secure the payments.

Requirements to start a lending business in Nigeria?

Before we get to requirements, let’s know some players in the market.

  1. LYDIA.CO – lends from US $500-15,000
  2. GROFIN- lends from US $100,000-1.5 Million
  3. ZEDVANCE- lends up to 3 Million Naira.
  4. PAYLATER- lends up to 500,000 Naira.
  5. ONE-FI- lends up to 200,000 Naira or more.

The above are some of the competitive money lenders, of course, many others are available and provide different loan amounts.


  • Documentation- you have to be documented by the immigration department if you are a foreigner.
  • Company name
  • Capital for the business.
  • Cash for Stamp Duty and Filling Fee
  • Certifications and Documents of agreements and terms of business.
  • Knowledge of the Money Lending Law.

The three processes to get your license:

  1. Application to the magistrate Court.
  2. Application to Ministry of Home Affairs  and Tourism
  3. Visitation from the Inspector Ministry.

Well, now that you have an idea, consider also having a lawyer to back you up on legal matters, advise you and your clients.

It’s also important to know more people that can always help you when you run into troubles or difficulties.

Well, we know how but not when to start. So when should you start a lending business in Nigeria? 

The time is now! This is why? 

Have you heard of credit management software? Yes, there is software to help you manage your business of lending by keeping records on all the transactions made.

Introducing Jisort, a web-based credit management software that automates transactions for Microfinance Institutions, SACCOs, Banks, Cooperatives, Credit Unions, Lending Organizations, and other MFIs. 

Simply Jisort is here to manage all transactions by keeping track of loans and keeping records of all transactions done.

Jisort lending system

Jisort has been operational for the last 6 years and has served both Local and International Clients. Besides their Core Banking systems are fully integrated with:

  • Banks
  • Mpesa
  • PesaLink
  • Credit Reference Bureaus (CRBs)
  • Vodacom
  • Tigo
  • Among others

They also offer alternative real-time integrated banking channel that allows Financial Institutions to offer banking services with minimum cost. 

Why Jisort?

  • Easy payment module- has a wide variety of integrations to choose from.
  • Full Human Resource and Payroll System to manage your human capital.
  • All in one place- manage all your clients easily and in one place.
  • Savings and Interest Accruing Savings product management system to offer saving accounts
  • Shares Management System – to offer shares, transfer shares, and manage issued shares to the public
  • Open API to readily extend system functionality or customize to fit your custom need.

The Jisort System Dashboard

jisort lending system in Nigeria

This simple screenshot shows all your members, completed loans, active loans, and pending loans, also the list of clients.

This system will help you manage many clients without worrying about remembering who borrowed and how much do they owe you.

jisort lending system in Nigeria

Well,  what next?

Sign up now for Jisort here.

Remember that money is never enough and investments” Investing should be more like watching paint dry or watching grass grow”, it’s up to you to choose the best criteria for you. 

Also, remember money doesn’t grow on grass so as you choose to start the lending business to make enough research.


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