Section 57: Prohibition of Unlicensed Financial Institutions.

(1) Without prejudice to the provisions of Chapter A of this Act, no person shall carry on specialised banking or business of other financial institution in Nigeria other than insurance, pension fund management, collective investment schemes and capital market business as defined respectively in the Insurance Act, the Pension Reform Act and the Investment and Securities Act except it is a company duly incorporated in Nigeria and holds a valid licence granted under this Act.
(Cap. 117. LFN, 2004.) (Act No. 4. 2014.) (Act No. 29. 2007)
(2) In this section, "business of other financial institutions" include-
(a) business of a discount house;
(b) bureau de change;
(c) credit bureau;
(d) finance company or money brokerage;
(e) international money transfer services;
(f) mortgage refinance company;
(g) mortgage guarantee company;
(h) credit guarantee;
(i) financial holding company or payment service providers; and
(j) businesses whose objects include-
(i) factoring,
(ii) project financing,
(iii) equipment leasing,
(iv) debt administration,
(v) private ledger services,
(vi) investment management,
(vii) local purchases order financing,
(viii) export finance, and
(ix) such other business as the Bank may, from time to time, designate, regardless of whether such businesses are conducted digitally, virtually or electronically only.
(3) Any person or institution which, before the commencement of this Act, was carrying on any business of other financial institution shall apply in writing to the Bank for a licence within three months of the date of commencement of this Act.
(4) Any person who fails to apply as provided in subsection (3) or who so applies and is not granted a licence within three months of such application shall cease to carry on such business of other financial institutions.
(5) Any person who conducts or is involved in conducting the business of other financial institutions without a valid licence in contravention of subsection (1) or (4), commits an offence and is liable on conviction-
(a) in the case of a body corporate, to a fine of not less than N10,000,000 and an additional fine of not less than N200,000 for each day during which the offence continues; and
(b) in any other case-
(i) to imprisonment for a term of not less than five years,
(ii) a fine of not less than N2,000,000 and an additional fine of not less than N50,000 for each day during which the contravention continues, or
(iii) both such imprisonment and fine.