Babajide Sanwo-Olu
Lagos State government has sanctioned 21 money lending companies for various regulatory breaches, according to the Commissioner for Home Affairs, Ibrahim Kayode.
Speaking during a ministerial press briefing on Tuesday, marking the second year of Governor Babajide Sanwo-Olu’s second term, Kayode highlighted that some firms failed to disclose key information about their operations, including changing business addresses without notifying the ministry. Others were found engaging in questionable activities.
“Moneylending business is one of the vital parts of the economy which allows people in small-scale industries and petty traders to have stress-free access to loans to finance their businesses, which might be difficult in the commercial banking sector due to prevailing conditions attached to granting of loans,” Kayode said.
He explained that the Ministry of Home Affairs oversees the registration, renewal, and licensing of moneylender operators in Lagos State. It also monitors their activities to ensure compliance with federal financial regulatory bodies such as the Federal Competition and Consumer Protection Commission (FCCPC) and the Special Control Unit Against Money Laundering (SCUML).
The ministry also holds stakeholders’ forums for moneylenders to foster cooperation and compliance.
Kayode noted a partnership between the ministry and the private sector, requiring most small-scale money lending organisations to register with the ministry.
The collaboration helps the ministry profile and regulate these companies to protect the public from fraudulent actors while supporting legitimate business operations.
“This partnership has greatly assisted small-scale business owners in Lagos to keep their petty businesses afloat without having to contend with the high interest rates of the big banks. This activity has contributed to the micro-economic growth of businesses in the State,” Kayode said.
Between May 2024 and May 2025, the ministry received 149 new moneylender applications and renewed licenses for 474 operators.
Read also:
Loan-app-in-Nigeria-with-low-interest-rates
Loan app publishes photos of debtors on social media
Lagos State Government Sanctions 21 Money Lending Companies
