Soaring Law Practice

Our children are our heritage, a symbol of hope and the pride of the society. They are innocent, vulnerable and deserve to be protected by all means. No child deserves to be subjected to any form of hardship and inhumane treatment due to the failure and ineptitude of the government. The future of any society lies in the hands of the children -destroying them is destroying the future of the society.

As we celebrate children’s day today, let us do a deep reflection and be reminded of the innocent children in the den of the kidnappers, with no shelter, with no food, languishing in pain. Let the tears of these innocent children ignite an anger in us. An anger that is not just expressed within the confine of our houses and social media spaces – let the anger cause each and every one of us to hold our government responsible for the torture of these children. Yes, the government owe them a duty of protection and safety, just as they owe every other child. Today, it is these innocent children, we do not know who the next victims will be. Let us rise in unity and solidarity, for the sake of our innocent children and their future, against the wickedness, insensibility, selfishness and nonchalance of our leaders. Our children deserve to live in a safe and secured society.

God bless our children. Happy children’s day to every child out there. I pray God’s protection on them all.

Happy Sallah to our Muslim faithful.

Happy Independence Day, Nigeria.

Bridging the Gap: Why Non-Regulated Moneylenders in Nigeria Must Strengthen Risk Management

In Nigeria’s dynamic financial landscape, non-regulated moneylenders — those not licensed by the Central Bank of Nigeria (CBN) — have become vital to grassroots economic activity. They provide quick loans to individuals, small businesses, traders, and artisans often excluded from traditional banking services.

However, while these lenders serve a real need, many lack the risk management systems needed to sustain their operations. And in today’s volatile economy, that’s a dangerous gap.

Why This Matters

Moneylenders who operate without CBN regulation are highly exposed to credit risk — the risk that borrowers will not repay their loans. Without a solid structure for assessing, documenting, monitoring, and recovering loans, many of these lenders struggle with:

• High default rates
• Liquidity issues
• Legal vulnerabilities
• Reputational damage

These risks don’t just hurt the lender; they threaten business continuity and investor confidence.

The Role of Moneylenders in Nigeria’s Economy

Moneylenders, especially at the micro and state level, contribute meaningfully to:

• Financial inclusion
• Microenterprise growth
• Rural and informal sector financing
• Employment and trade facilitation

Their impact is undeniable — but so are their vulnerabilities.

Key Risks Moneylenders Face

• Poor borrower profiling
• Lack of formal loan agreements
• Weak loan monitoring
• No structured recovery process
• Limited compliance with state laws

In a tough economy, with rising inflation and limited disposable income, these risks multiply.

How Moneylenders Can Build a Resilient Lending Business
Here are practical risk management strategies moneylenders should adopt:

1. Know Your Customer (KYC):
Collect and verify IDs, addresses, business details, and guarantors.

2. Formal Documentation:
Use written loan agreements that clearly state repayment terms and penalties.

3. Credit Scoring Systems:
Develop simple risk scoring based on income, trade history, or previous behavior.

4. Use Technology:
Tools like spreadsheets, mobile apps, or platforms like Migo or FairMoney can improve tracking.

5. Diversify Loan Portfolio:
Avoid lending too heavily to one sector or customer group.

6. Collateral or Guarantors:
Use movable assets, guarantors, or post-dated cheques for risk coverage.

7. Licensing & Legal Compliance:
Obtain a moneylender’s license under your state’s law for legitimacy and legal backup.

8. Partner for Recovery:
Work with debt recovery experts or use structured reminder systems.

Conclusion

Many moneylenders operate informally — but informality is not an excuse for poor risk controls.

Sustainability requires structure.
Growth requires systems.
Survival demands compliance.

At Soaring Law Practice, we advise informal and non-bank financial institutions on risk management, compliance, and legal structuring to ensure their businesses are resilient, scalable, and secure.

Want guidance on licensing, risk structuring, or legal protections for your lending business?

📩 Send us a message or email: [[email protected]]

🤔 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. 📩

The Nigerian president recently assented to four pivotal tax-related legislations aimed at overhauling Nigeria’s long-standing, fragmented, and inefficient tax structure. These laws, collectively called the Tax Reform Acts 2025, include:

1. Nigeria Revenue Service (Establishment) Act
2. Nigeria Tax Act
3. Nigeria Tax Administration Act
4. Joint Revenue Board (Establishment) Act

Together, these laws form the backbone of what may become Nigeria’s most ambitious tax reform since independence.

https://soaringlp.com/nigerias-new-tax-era-four-landmark-acts-and-what-they-mean-for-you/