The Federal Government says it is investigating the activities of some loan sharks over the violation of customers’ data privacy.
Vincent Olatunji, the national commissioner of the Nigeria Data Protection Commission, announced this during an interview on Tuesday.
‘Sharp Sharp’ loan operators, also known in some quarters as loan sharks, are private sector-based, largely unregulated loan vendors who advance immediate loans to soliciting and sometimes unsolicited customers without collateral.
He spoke on the sidelines of a data protection officer training in Abuja.
He said the federal government was aware that some of those lenders breached their customers’ data privacy in their desperate bid to recover their loans.
According to him, some of the violations include accessing borrowers’ phone contact lists to reach their family members and friends; sharing images without consent; and sending defamatory or threatening messages.
The commissioner emphasised the need for increased public awareness, urging Nigerians to understand their rights and carefully review loan agreements before accepting offers.
Mr Olatunji, however, said unethical data practices by loan operators remained a global concern.
“Many borrowers unknowingly expose their personal data due to failure to read loan agreements. This is not peculiar to Nigeria; it is common in every part of the world,” Mr Olatunji stated. “Unfortunately, most of the information are from those who obtained loans without going through the agreement they signed before accessing the loans.”
He said Nigeria has several consumer protection entities, such as the Federal Competition and Consumer Protection Commission, that lead consumer protection efforts.
The NDPC boss listed other key agencies involved in regulating the space as the National Information Technology Development Agency, the Nigerian Communications Commission, the Central Bank of Nigeria, and the Nigeria Police.
He said that any digital lender should obtain approval and licensing from the FCCPC, with strict requirements to uphold user privacy.
Regarding the investigations of Sterling Bank, Remita and Temu, Mr Olatunji said the commission was adhering strictly to due process to ensure fairness and accountability.
“Investigations take time because we must follow laid-down procedures. We invite organisations, review their submissions, and give them the opportunity to defend themselves.
“For Sterling Bank, we have completed the process and issued our decision. For Temu, the process is ongoing, and they have requested an extension of time to appear before the commission, which has been granted,” he said.
Mr Olatunji reiterated that the NDPC’s priority remained ensuring accountability among data controllers and processors, as well as safeguarding the personal data of Nigerians.
(NAN)
