The Lagos State Government has sanctioned at least 15 money lending companies for violating operational regulations and engaging in practices deemed harmful to residents.
The Commissioner for Home Affairs, Ibrahim Layode, made this known on Friday during the 2026 Ministerial Press Briefing held in Ikeja. He said the action forms part of ongoing efforts to regulate the money lending sector and protect Lagos residents from exploitative and fraudulent financial practices.
According to him, the Lagos State government remains committed to enforcing strict compliance among industry operators.
He explained that the sanctioned firms were penalised to ensure full adherence to established guidelines and to safeguard citizens from sharp practices by financial institutions.
Layode noted that money lending remains an important part of the economy, as it provides quick and accessible loans to petty traders and small business owners who are often unable to access credit from traditional banks due to strict requirements.
He added that the Ministry of Home Affairs is responsible for processing applications, issuing and renewing licences for money lenders in Lagos State, as well as monitoring their operations to ensure compliance with regulatory standards.
The commissioner also said the ministry regularly organises stakeholder meetings and training sessions to expose operators to global best practices and improve professionalism in the sector.
In addition, he stated that the Lagos State government works with federal agencies such as 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.
According to him, the ministry also profiles and monitors licensed money lending companies to protect residents from fraudulent operators and unethical practices.
He added that licensed lenders continue to play a key role in supporting micro and small-scale businesses in Lagos by providing alternative financing options outside traditional banking systems.
Layode further revealed that between 2025 and 2026, the ministry received 112 new applications from money lending firms, while 214 existing licences were renewed.
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