The Federal Government has begun probing the operations of certain fast loan providers, popularly known as “sharp sharp” lenders, over alleged breaches of customers’ data privacy.
The National Commissioner of the Nigeria Data Protection Commission (NDPC), Vincent Olatunji, disclosed this during an interview in Abuja.
These loan operators, often described as loan sharks, are mostly privately run and operate with minimal regulation, offering instant loans to individuals, sometimes without collateral.
Olatunji explained that authorities were aware that some of these lenders engage in questionable practices in an attempt to recover debts, including violating users’ privacy.
He listed some of the alleged misconduct to include gaining access to borrowers’ phone contacts, reaching out to their friends and family, sharing personal images without consent, and sending threatening or defamatory messages.
He stressed the importance of public awareness, urging Nigerians to understand their data rights and carefully read the terms of loan agreements before accepting any offers.
According to him, unethical handling of personal data by digital lenders is not limited to Nigeria but is a global issue, often worsened by users failing to review agreements before signing up.
Olatunji also noted that many of these operators exist solely online without physical offices, making regulation more challenging, though compliance with data protection laws remains compulsory.
He pointed out that several agencies are involved in oversight and consumer protection, including the Federal Competition and Consumer Protection Commission (FCCPC), National Information Technology Development Agency (NITDA), Nigerian Communications Commission (NCC), Central Bank of Nigeria (CBN), and the Nigeria Police.
He added that digital lenders must obtain proper licensing and approval from the FCCPC and adhere strictly to privacy requirements to avoid violating customers’ rights.
The commissioner warned that unauthorised access to individuals’ personal data, including contact lists, constitutes an offence and would be dealt with accordingly.
Speaking on ongoing investigations involving some organisations, he said due process was being followed to ensure fairness, with affected parties given the opportunity to respond before decisions are reached.
He reaffirmed that protecting Nigerians’ personal data and ensuring accountability among data handlers remain top priorities for the commission.