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In a new effort to clean up the informal financial sector, the Lagos state government has approved and closed 21 people and the entity found to operate as a lender of money without permission.
The announcement was made on Tuesday in Alausa, Ikeja, by the Commissioner of Domestic Affairs, Mr. Olanrewaju Layode, during the Minister’s press briefing to mark the second warning of the second term of office of the Governor of Babajide Sanwo-Olu.
Layode describes the landscape of the money loan sector regulation as a complex and developing, with more than 600 operators currently licensed by the state.
“We have around 623 registered money lenders operating throughout Lagos, but unfortunately, some continue to oppose the law by operating without licenses,” he said. “To protect the population from predatory practices, we have sealed the office of 21 lenders of money without permission.”
He noted that some default tried to avoid regulations by changing their location without telling the ministry, thus complicating law enforcement efforts.
“The tactics that dodged not only inhibits regulations but also make residents vulnerable to risk. The Ministry is intensifying its monitoring strategy and will not hesitate to implement full legal weight,” he warned.
Clampdown appeared in the midst of greater concerns over unethical loan practices, including exorbitant interest rates and humiliating debtors, problems that had disrupted the Nigerian digital and informal loan market.
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