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The Lagos State Government has sanctioned at least 15 money lending companies for violating operational regulations and engaging in activities considered harmful to residents.
Eko Hot Blog reports that the Commissioner for Home Affairs, Ibrahim Layode, disclosed this during the 2026 Ministerial Press Briefing held in Ikeja on Friday.
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According to Layode, the sanctions form part of the state government’s ongoing efforts to regulate the money lending sector and protect Lagos residents from exploitative and fraudulent financial practices.
“The firms were sanctioned to ensure strict adherence to guidelines and to protect Lagosians from sharp practices by financial firms,” the commissioner said.
He explained that money lending remains an important part of the economy because it provides quick and accessible loans to petty traders and small business owners who often struggle to secure credit from conventional banks due to strict lending conditions.
“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 stated.
Layode noted that the Ministry of Home Affairs is responsible for processing applications, issuing and renewing operational licences for money lending firms in Lagos State, while also monitoring their activities to ensure compliance with regulatory standards.
He added that the ministry regularly organises stakeholder forums and training programmes to expose operators to global best practices and improve professionalism within 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 disclosed that the ministry works closely with regulatory agencies such as the Federal Competition and Consumer Protection Commission and the Special Control Unit Against Money Laundering to strengthen oversight and enforce compliance within the industry.
According to him, the government also profiles and monitors licensed operators to shield the public from fraudulent firms and questionable lending practices.
“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.
Layode stated that licensed money lenders have continued to support the survival and growth of micro and small-scale businesses across Lagos by providing alternative funding sources outside the traditional banking system.
He also revealed that the ministry received 112 fresh applications from money lending firms between 2025 and 2026, while 214 existing licences were renewed within the same period.
