The Lagos State Government has sanctioned no fewer than 15 money lending firms for violating operational guidelines and engaging in practices considered detrimental to residents of the state.
The State Commissioner for Home Affairs, Ibrahim Layode, disclosed this at the 2026 Ministerial Press in Alausa, Ikeja, saying the action formed part of the government’s efforts to sanitise the money lending sector and protect Lagosians from exploitation and fraudulent financial practices.
Layode said the state government would continue to enforce strict compliance among money lenders operating within Lagos.
“The firms were sanctioned to ensure strict adherence to guidelines and to protect Lagosians from sharp practices by financial firms”.
According to the commissioner, 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.
“Moneylending 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”.
He explained that the Ministry of Home Affairs is responsible for processing applications, issuing and renewing licences for money lenders operating in the state, while also monitoring and supervising their activities.
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Layode said 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’ forum for Moneylender operators in order to bring them up to speed on the latest world best practices”.
The commissioner disclosed that the ministry works closely with federal regulatory agencies, including the Federal Competition and Consumer Protection Commission, FCCPC, and the Special Control Unit Against Money Laundering, SCUML, 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.
He added that the activities of licensed money lenders have contributed significantly to the growth of micro and small businesses in Lagos by providing alternative financing opportunities outside conventional banking institutions.
“This partnership has greatly assisted small-scale business owners in Lagos to keep their petty businesses afloat without having to contend with high interest rates and clauses of the big commercial banks”.
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