Lagos State government has sanctioned 15 money lending firms for violating operational guidelines and engaging in practices considered detrimental to residents of the state.
Speaking, on Friday, during the 2026
ministerial press briefing to mark the third year of the second term of
Governor Babajide Sanwo-Olu, the Commissioner for Home Affairs, Ibrahim
Layode, said the action formed part of the government’s efforts to sanitise the
money lending sector and protect Lagosians from exploitation and fraudulent
financial practices.
He added that the state government would
continue to enforce strict compliance among money lenders operating within
Lagos. “The firms were sanctioned to ensure strict adherence to guidelines and
to protect Lagosians from sharp practices by financial firms,” he said.
The commissioner also said money lending
remains a critical component of the economy because it provides quick access to
credit for petty traders and small-scale business operators who often struggle
to secure loans from commercial banks due to stringent conditions and
requirements.
“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,” Layode stated.
He explained that the Ministry of Home
Affairs is responsible for processing applications, issuing and renewing
licences for money lenders operating in the state, while also monitoring and
supervising their activities.
The commissioner said the government
regularly organises stakeholders’ forums for operators in the sector to expose
them to global best practices and strengthen professionalism within the
industry.
“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 disclosed that the
ministry works closely with federal regulatory agencies, including the Federal
Competition and Consumer Protection Commission, FCCPC, and the Special
Control Unit Against Money Laundering, SCUML, to ensure compliance with
financial regulations.
Layode further explained that the
ministry profiles and monitors money lending firms to ensure that residents are
protected from dubious operators and fraudulent schemes.
“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 said.
He added that the activities of licensed
money lenders have contributed significantly to the growth of micro and small
businesses in Lagos by providing alternative financing opportunities outside
conventional banking institutions.
“This partnership has greatly assisted
small-scale business owners in Lagos to keep their petty businesses
afloat without having to contend with high interest rates and clauses of the
big commercial banks,” Layode said.
According to the commissioner, within
the 2025–2026 period under review, the ministry received 112 new applications
from money lending operators, while 214 existing licences were renewed.
On naturalisation and special immigrant
status applications, Layode said the ministry, in collaboration with the
Federal Ministry of Interior, continued to process applications from foreign
nationals seeking Nigerian citizenship or permanent residency status.
He explained that naturalisation is
granted to foreigners who have lived continuously in Nigeria for at least 15
years and have established investment interests in their states of residence.
“The objective of the exercise is to
grant citizenship rights to foreigners who have lived in the country
continuously for fifteen years and above with investment interests in their
states of residence,” he stated.
Layode added that special immigrant
status is designed for foreign nationals married to Nigerian citizens as part
of efforts to promote integration and economic development.
He disclosed that applicants undergo
screening and verification processes involving agencies such as the Nigerian
Immigration Service, Department of State Services, Nigeria Police, Lagos State
Ministry of Justice and the Lagos State Internal Revenue Service.
According to him, 68 applications for
naturalisation and special immigrant status were received during the period
under review, while 20 applicants were cross-examined and screened for onward
transmission to the Federal Ministry of Interior for final clearance.
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