Lagos Sanctions 15 Money Lending Firms for Violations

The Lagos State Government has sanctioned 15 money lending firms for breaching operational regulations, as disclosed by Ibrahim Layod, the Commissioner for Home Affairs, during a press briefing on Friday. This initiative is part of ongoing efforts to regulate the money lending sector and protect Lagos residents from exploitation and fraudulent financial practices.

Layod emphasized the government's commitment to enforcing strict compliance among operators within the industry. The sanctioned firms are expected to adhere to guidelines designed to protect residents from sharp practices.

Money lending plays a crucial role in supporting the economy by providing access to loans for petty traders and small business owners who often struggle to obtain credit from conventional banks. The Ministry of Home Affairs oversees the application and renewal process for money lenders' operational licenses and monitors their activities to ensure compliance with regulatory standards.

In 2025-2026, the ministry received 112 new applications from money lending firms and has 214 existing license renewals.