The Federal Government says it is investigating “sharp sharp” loan operators over alleged violations of customers’ data privacy.
The National Commissioner of the Nigeria Data Protection Commission, Mr Vincent Olatunji, disclosed this during an interview with the News Agency of Nigeria (NAN) on Tuesday in Abuja.
Digital lenders under scrutiny
“Sharp sharp” lenders, often called loan sharks, operate mostly online. They offer quick loans without collateral. Many are largely unregulated.
Olatunji said authorities are aware of growing complaints. He noted that some operators abuse borrowers’ personal data during debt recovery.
Alleged privacy breaches
He listed several violations under investigation. These include accessing borrowers’ contact lists. Others involve contacting relatives and friends without consent.
Some lenders also share customers’ photos. They send defamatory or threatening messages to recover loans.
He stressed that such actions violate data protection rules.
Public awareness and compliance
Olatunji urged Nigerians to understand their rights. He advised borrowers to read loan terms carefully before accepting offers.
He said poor awareness often exposes users to risk. Many people skip agreements before taking loans.
He added that unethical practices exist globally, not only in Nigeria.
Regulation of digital lenders
According to him, many lenders operate only online. This makes regulation more difficult.
However, he insisted that compliance is mandatory for all operators in Nigeria.
He also noted that lenders must secure approvals before operating.
Relevant regulators include the Federal Competition and Consumer Protection Commission, the National Information Technology Development Agency, the Nigerian Communications Commission, the Central Bank of Nigeria, and the Nigeria Police Force.
Ongoing investigations
Olatunji also spoke on ongoing cases involving Sterling Bank, Remita, and Temu.
He said investigations follow due process. This includes inviting organisations and reviewing their responses.
He added that Sterling Bank’s case has been concluded with a decision issued. Temu’s case is still ongoing after a request for more time.
NDPC position
The commissioner reaffirmed the agency’s focus on accountability. He said the goal is to protect Nigerians’ personal data.
He also stressed that regulators will act against unauthorised access to user contacts and other privacy breaches.
