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The Lagos State Government has sanctioned at least 15 money lending companies for breaching operational rules and engaging in practices deemed harmful to residents.
The Commissioner for Home Affairs, Ibrahim Layode, disclosed this at the 2026 Ministerial Press Briefing held in Alausa, Ikeja, stating that the move formed part of efforts to clean up the money lending sector and shield residents from exploitation and fraudulent financial practices.
He said the government would continue to enforce strict compliance among operators in the sector.
“The firms were sanctioned to ensure strict adherence to guidelines and to protect Lagosians from sharp practices by financial firms,” Layode said.
He noted that money lending plays a key role in the economy by providing quick access to credit for petty traders and small-scale entrepreneurs who often cannot meet commercial bank requirements.
Layode explained that the Ministry of Home Affairs handles registration, licensing and supervision of money lenders in the state.
He added that the government also holds regular stakeholder forums to expose operators to global best practices and improve professionalism in the sector.
The commissioner said the ministry works with federal agencies such as the Federal Competition and Consumer Protection Commission and SCUML to ensure compliance with financial regulations.
He stated that the ministry also profiles and monitors operators to protect residents from fraudulent schemes.
Layode said licensed money lenders have supported small businesses in Lagos by providing alternative financing outside traditional banking channels.
He disclosed that between 2025 and 2026, the ministry received 112 new applications and renewed 214 licences for money lending operations.
He added that 68 applications for naturalisation and special immigrant status were received within the same period, while 20 applicants were screened for further processing by the Federal Ministry of Interior.
