Lagos to overhaul laws on money lending

Lagos State Government has announced plans to overhaul its laws on money lending to protect the rights of borrowers and ensure fair practices in the industry.

According to a statement by the Lagos State Ministry of Justice, the state government is reviewing its laws on money lending to address the challenges faced by borrowers, including exorbitant interest rates, harsh penalties, and lack of transparency.

The review is aimed at ensuring that the laws are in line with international best practices and the needs of the modern economy. The government is also seeking to promote financial inclusion and access to credit for all segments of the population.

Some of the key changes being proposed include:

1. Introduction of a cap on interest rates: The government is considering introducing a cap on interest rates to prevent lenders from charging exorbitant rates that can lead to debt traps.
2. Regulation of lenders: The government plans to establish a regulatory framework to oversee the activities of money lenders and ensure that they operate in a transparent and fair manner.
3. Protection of borrowers' rights: The government is proposing to introduce measures to protect the rights of borrowers, including the right to fair treatment, transparency, and accountability.
4. Alternative dispute resolution mechanisms: The government is considering introducing alternative dispute resolution mechanisms to resolve disputes between lenders and borrowers in a timely and cost-effective manner.
5. Education and awareness: The government plans to launch public awareness campaigns to educate borrowers about their rights and responsibilities, as well as the risks associated with money lending.

The review of the laws on money lending is part of the Lagos State Government's efforts to promote financial inclusion and economic development in the state. The government believes that by providing access to credit and protecting the rights of borrowers, it can help to stimulate economic growth and reduce poverty.

The review process is expected to be completed in the next few months, and the government plans to implement the new laws and regulations in the near future.