Lagos govt 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. This move is aimed at addressing the issues of high-interest rates and exploitation of borrowers by some money lenders.

The review is expected to focus on the following key areas:

  1. Interest rates: The government plans to cap interest rates charged by money lenders to prevent exploitation of borrowers.
  2. Licensing and regulation: The review will also focus on strengthening the licensing and regulation of money lenders to ensure that they operate within the law and do not engage in unfair practices.
  3. Borrower protection: The government aims to introduce measures to protect borrowers from harassment and intimidation by money lenders.
  4. Alternative dispute resolution: The review will also consider the establishment of an alternative dispute resolution mechanism to resolve disputes between borrowers and money lenders.

The Lagos State Government has stated that the review is necessary to ensure that the money lending industry operates in a fair and transparent manner, and to protect the rights of borrowers.

It is worth noting that the review is still in its early stages, and the government has not yet provided a timeline for when the new law will be implemented.

Source: Punch Newspaper, "Lagos to review law on money lending"