Lagos government plans review of law on money lending

According to recent reports, the Lagos State Government has announced plans to review the law on money lending in the state. The review is aimed at addressing the issues of high-interest rates and exploitation of borrowers by some money lenders.

The Lagos State Commissioner for Finance, Dr. Rabiu Olowo, made this announcement during a meeting with stakeholders in the financial sector. According to him, the review of the law is necessary to ensure that money lending is done in a fair and transparent manner.

The current law on money lending in Lagos State is the Lagos State Money Lenders Law, 2004. The law regulates the activities of money lenders in the state and provides for the licensing and registration of money lenders. However, the law has been criticized for being outdated and not providing adequate protection for borrowers.

The planned review of the law is expected to address some of the issues that have been raised by borrowers, including the high-interest rates charged by some money lenders. The review is also expected to provide for more stringent regulations and penalties for money lenders who engage in exploitative practices.

The Lagos State Government has also announced plans to establish a regulatory body to oversee the activities of money lenders in the state. The regulatory body will be responsible for ensuring that money lenders comply with the law and provide fair and transparent services to borrowers.

The planned review of the law on money lending in Lagos State is a welcome development, as it is expected to provide more protection for borrowers and promote a more stable and sustainable financial system in the state.