Soaring Law Practice

Happy Sallah to our Muslim faithful.

🤔 Are you dealing with a moneylender or a microfinance bank?

A lot of people—borrowers and small businesses alike—don’t know the difference between state-licensed moneylenders and CBN-licensed microlenders.

Here's what you should know:

👉 Moneylenders are licensed by states. They can’t take deposits and usually only lend within that state.

👉 Microlenders, like microfinance banks, are licensed by the CBN. They operate across states, can take savings, and are more strictly regulated.

Now here’s the kicker:

⚠️ If a moneylender begins offering services like a bank—accepting deposits, operating nationwide, or offering more complex financial services—they must be licensed by the CBN, or they risk facing legal sanctions.

So before you borrow (or lend!), make sure you know who you’re dealing with. It could affect your rights, your money, and the enforceability of any loan agreement.

Need advice or clarity? We're here to help. 📩