Lagos State Penalizes 15 Money Lenders for Regulatory Breaches

Lagos govt sanctions 15 money lending firms over operational violations Lagos State Government has sanctioned at least 15 money lending companies for breaching operational regulations and engaging in activities considered harmful to residents. The Commissioner for Home Affairs, Ibrahim Layode, disclosed this on Friday during the 2026 Ministerial Press Briefing held in Ikeja, stating that the move was part of ongoing efforts to regulate the money lending sector and shield Lagosians from exploitative and fraudulent financial practices. According to Layode, the state government remains committed to enforcing strict compliance among operators within the industry. “The firms were sanctioned to ensure strict adherence to guidelines and to protect Lagosians from sharp practices by financial firms,” the commissioner stated. He noted that money lending plays an important role in supporting the economy by providing accessible loans to petty traders and small business owners who often face difficulties obtaining credit from conventional banks due to rigid 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 said. Layode explained that the Ministry of Home Affairs oversees the processing of applications, issuance and renewal of operational licences for money lenders in Lagos State, while also monitoring their activities to ensure compliance with regulatory standards. He added that the ministry regularly organises stakeholder engagements and training sessions aimed at exposing operators to international best practices and improving professionalism in the sector. “We also conduct stakeholders’ forums for moneylender operators in order to bring them up to speed on the latest world best practices,” he said. The commissioner further revealed that the ministry collaborates with federal regulatory bodies, including the Federal Competition and Consumer Protection Commission, FCCPC, and the Special Control Unit Against Money Laundering, SCUML, to strengthen oversight and ensure compliance with financial regulations. Layode said the government also profiles and monitors licensed money lending firms to protect residents from fraudulent operators and questionable business activities. “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 added. He maintained that licensed money lenders have continued to support the growth of micro and small-scale businesses in Lagos by offering alternative sources of funding outside traditional 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,” Layode said. The commissioner also disclosed that between 2025 and 2026, the ministry received 112 fresh applications from money lending firms, while 214 existing licences were renewed. You have continued to violate my father’s rights – El-Rufai tells ICPC You may like • Lagos bans petroleum tankers from transporting edible oil Lagos bans petroleum tankers from transporting edible oil • Tinubu departs Rwanda for Lagos [VIDEO] Tinubu departs Rwanda for Lagos [VIDEO] • 2026 Hajj: First batch of Lagos pilgrims proceeds to Makkah 2026 Hajj: First batch of Lagos pilgrims proceeds to Makkah • Lagos reschedules Public Service Examinations Lagos reschedules Public Service Examinations • NSCDC arrests suspected cable vandals in Lagos community NSCDC arrests suspected cable vandals in Lagos community • Lagos records surge in accidents involving dispatch riders — LASTMA Lagos records surge in accidents involving dispatch riders — LASTMA