The Lagos State Government has sanctioned at least 15 money lending firms for violating operational guidelines 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, stating that the action was part of efforts to sanitise the money lending sector and protect residents from exploitation and fraudulent financial practices.
Layode said the government would continue to enforce strict compliance among operators in the sector to ensure ethical business conduct.
According to him, the sanctioned firms were penalised to guarantee adherence to existing regulations and shield Lagos residents from exploitative practices by some financial operators.
He noted that money lending remains an important part of the economy because it provides quick access to credit for petty traders and small-scale business owners who often face difficulties securing loans from conventional banks due to strict lending 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 said.
The commissioner explained that the Ministry of Home Affairs is responsible for processing applications, issuing licences and renewals for money lending firms, as well as supervising and monitoring their activities across the state.
He added that the ministry regularly organises stakeholders’ forums to expose operators to global best practices and strengthen professionalism within the industry.
Layode also disclosed that the ministry collaborates with federal regulatory agencies, including the Federal Competition and Consumer Protection Commission and the Special Control Unit Against Money Laundering, to ensure compliance with financial and consumer protection regulations.
According to him, the government profiles and monitors money lending firms to protect residents from fraudulent operators and dubious 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.
Layode stated that licensed money lenders have contributed significantly to the survival and growth of micro and small businesses in Lagos by providing alternative financing opportunities outside traditional banking institutions.
He said the partnership between the government and licensed operators had helped many small-scale entrepreneurs sustain their businesses without the burden of stringent loan conditions and high interest rates often associated with commercial banks.
The commissioner revealed that between 2025 and 2026, the ministry received 112 fresh applications from money lending operators, while 214 existing licences were renewed.
On naturalisation and special immigrant status applications, Layode said the ministry, in partnership with the Federal Ministry of Interior, continued to process applications from foreign nationals seeking Nigerian citizenship or permanent residency.
He explained that naturalisation is granted to foreigners who have resided continuously in Nigeria for at least 15 years and have established investment interests in their states of residence.
Layode added that special immigrant status is intended for foreign nationals married to Nigerian citizens as part of efforts to promote integration and economic development.
According to him, applicants are subjected to screening and verification by agencies including the Nigeria Immigration Service, Department of State Services, Nigeria Police Force, the Lagos State Ministry of Justice and the Lagos State Internal Revenue Service.
He disclosed that 68 applications for naturalisation and special immigrant status were received during the period under review, while 20 applicants were screened and cross-examined before being forwarded to the Federal Ministry of Interior for final clearance.
