The Lagos State government has sanctioned 15 money lending companies for breaching operational guidelines and engaging in practices deemed harmful to residents.
Commissioner for Home Affairs Ibrahim Layode announced the action Friday at the 2026 ministerial press briefing marking Gov. Babajide Sanwo-Olu’s third year in his second term.
He said the sanctions are part of efforts to clean up the sector and shield Lagosians from exploitation and fraudulent financial practices. “The firms were sanctioned to ensure strict adherence to guidelines and to protect Lagosians from sharp practices by financial firms,” Layode said.
Money lending remains vital for petty traders and small businesses that struggle to get loans from commercial banks due to tough requirements, he noted. The sector gives them quick access to credit to keep operations running.
The Ministry of Home Affairs handles licensing, renewals, and monitoring of money lenders in the state. Layode said the ministry also runs stakeholders’ forums to update operators on global best practices and boost professionalism.
The ministry works with federal agencies like the FCCPC and SCUML to enforce financial regulations, profile firms, and weed out dubious operators.
Licensed money lenders have helped grow micro and small businesses by offering alternative financing outside conventional banks, Layode added. Between 2025 and 2026, the ministry received 112 new applications and renewed 214 licences.
On citizenship matters, Layode said the ministry processed 68 applications for naturalisation and special immigrant status during the review period, with 20 applicants screened for onward transmission to the Federal Ministry of Interior.
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