The Lagos State government has penalized 21 money lending companies for breaching various regulatory guidelines. This was disclosed by the Commissioner for Home Affairs, Ibrahim Kayode, during a ministerial press briefing held to mark Governor Babajide Sanwo-Olu’s second term anniversary. The violations included failure to update the government on changes such as business addresses and involvement in suspicious activities that contravene set rules.
Kayode emphasized the essential role money lending plays in supporting small businesses and petty traders, especially those who struggle to access traditional bank loans due to stringent requirements. He noted that these alternative lenders provide crucial financial support, helping many small-scale entrepreneurs survive and thrive in a challenging economic environment.
The Ministry of Home Affairs is responsible for the registration, renewal, and licensing of moneylenders in Lagos State. It also ensures their operations align with federal regulations, including those from the Federal Competition and Consumer Protection Commission (FCCPC) and the Special Control Unit Against Money Laundering (SCUML). The ministry conducts regular oversight and engagement with operators through stakeholder forums to ensure compliance.
Kayode also mentioned the ministry’s collaboration with private sector players, which mandates registration of most small-scale lenders. This initiative helps identify and monitor these businesses, ensuring public protection from fraudulent practices while encouraging the growth of legitimate lending operations.
Over the past year, the ministry has processed 149 new applications and renewed licenses for 474 existing money lenders. Kayode concluded that the government’s actions not only ensure a regulated financial environment but also promote the sustainability and microeconomic growth of small businesses across Lagos State.
Source: The Guardian