Lagos drops hammer on 21 illegal money lenders, vows stricter oversight

In a renewed effort to sanitise the informal financial sector, the Lagos State Government has sanctioned and shut down 21 individuals and entities found to be operating as unlicensed money lenders.

The announcement was made on Tuesday at Alausa, Ikeja, by the Commissioner for Home Affairs, Mr. Olanrewaju Layode, during a ministerial press briefing to mark the second anniversary of Governor Babajide Sanwo-Olu’s second term in office.

Layode described the regulatory landscape of the money lending sector as complex and evolving, with over 600 operators currently licensed by the state.

“We have about 623 registered money lenders operating across Lagos, but unfortunately, some continue to defy the law by operating without licences,” he said. “To protect residents from predatory practices, we have sealed the offices of 21 unlicensed money lenders.”

He noted that some defaulters attempt to sidestep regulations by changing their locations without notifying the ministry, thereby complicating enforcement efforts.

“These evasive tactics not only hinder regulation but put vulnerable residents at risk. The ministry is intensifying its monitoring strategy and will not hesitate to apply the full weight of the law,” he warned.

The clampdown comes amid growing concerns over unethical lending practices, including exorbitant interest rates and public shaming of debtors, issues that have plagued Nigeria’s digital and informal loan markets.

The post Lagos drops hammer on 21 illegal money lenders, vows stricter oversight appeared first on Latest Nigeria News | Top Stories from Ripples Nigeria.