No fewer than 15 money lender firms have been sanctioned by the Lagos State Government for engaging in unethical practices detrimental to residents of the state.
- +Lagos cracks down on 15 money lending firms
The measure, the government said, became necessary to ensure strict adherence to guidelines and protect Lagosians against sharp practices by financial firms.
The measure, the government said, became necessary to ensure strict adherence to guidelines and protect Lagosians against sharp practices by financial firms.
Ibrahim Layode, the state Commissioner for Home Affairs, who stated this, Friday, at the ongoing 2026 Ministerial Press Briefing, said the action formed part of the government’s efforts to sanitise the money lending sector and protect Lagosians from exploitation and fraudulent financial practices.
According to him, money lending remains a critical component of the economy because it provides quick access to credit for petty traders and small-scale business operators who often struggle to secure loans from commercial banks due to stringent conditions and requirements.
“Money lending business is one of the vital parts of the economy which allows people in the small-scale industry and petty traders to have stress-free access to quick loans to finance their businesses,” Layode said.
He said the ministry was responsible for processing applications, issuing and renewing licences for money lenders operating in the state, while also monitoring and supervising their activities.
Layode noted that the government regularly organises stakeholders’ forums for operators in the sector to expose them to global best practices and strengthen professionalism within the industry.
“We also conduct stakeholders’ forums for Money lender operators in order to bring them up to speed on the latest world best practices,” he said.
The commissioner said the ministry works in concert with federal regulatory agencies such as the Federal Competition and Consumer Protection Commission, and the Special Control Unit Against Money Laundering, to ensure compliance with financial regulations.
Layode further explained that the ministry profiles and monitors money lending firms to ensure that residents are protected from dubious operators and fraudulent schemes.
“In addition, the ministry registers, profiles and monitors the viability of such companies with a view to ensuring that while the money lenders are in business, the general public is also protected from being scammed by fraudulent people of questionable characters,” he said.
