The Lagos State Government has sanctioned 15 money lending companies for violating operational regulations and engaging in practices considered harmful to residents.
The State Commissioner for Home Affairs, Ibrahim Layode, disclosed this during the 2026 Ministerial Press Briefing held in Alausa, Ikeja.
According to Layode, the sanctions form part of the state government’s efforts to clean up the money lending sector and protect Lagos residents from exploitation, harassment 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 stressed that the state government would continue enforcing compliance among money lenders operating within Lagos.
Layode described money lending as an important part of the economy, especially for petty traders and small business owners who often find it difficult to access loans from commercial banks because of strict requirements and 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.
The commissioner explained that the Ministry of Home Affairs is responsible for processing applications, issuing licences, renewing permits and supervising the activities of money lenders across the state.
He added that the ministry regularly organises stakeholders’ forums to educate operators on global best practices and improve professionalism in the industry.
“We also conduct stakeholders’ forum for moneylender operators in order to bring them up to speed on the latest world best practices,” Layode said.
According to him, the ministry works closely with 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 explained that the ministry profiles and monitors money lending firms to protect the public from fraudulent operators and questionable 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 added.
He noted that licensed money lenders have contributed to the growth of micro and small businesses in Lagos by offering 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,” he said.
Layode further disclosed that between 2025 and 2026, the ministry received 112 fresh applications from money lending operators and renewed 214 existing licences.
On immigration matters, the commissioner said the ministry, in collaboration with the Federal Ministry of Interior, continued processing applications for naturalisation and special immigrant status.
He explained that naturalisation is granted to foreign nationals who have resided continuously in Nigeria for at least 15 years and have established investment interests within their states of residence.
Layode added that special immigrant status is designed for foreigners married to Nigerian citizens as part of efforts to encourage integration and economic development.
He said applicants were subjected to screening and verification exercises involving agencies such as the Nigerian Immigration Service, the Department of State Services, the Nigeria Police Force, the Lagos State Ministry of Justice and the Lagos State Internal Revenue Service.
According to him, the ministry received 68 applications for naturalisation and special immigrant status during the period under review, while 20 applicants were screened and recommended to the Federal Ministry of Interior for final approval.
