By Our Reporter
The Federal Government has launched an investigation into the operations of so-called “sharp sharp” loan providers over alleged violations of customers’ data privacy.
Speaking in Abuja, the National Commissioner of the Nigeria Data Protection Commission, Mr. Vincent Olatunji, disclosed that authorities are probing complaints against some digital lenders accused of breaching users’ personal information while attempting to recover loans.
These loan operators—often described as loan sharks—typically offer quick, collateral-free loans through digital platforms. However, concerns have grown over their practices, including accessing borrowers’ phone contact lists, reaching out to friends and family members, and sharing personal images or sending threatening and defamatory messages without consent.
Olatunji warned that such actions violate Nigeria’s data protection laws, stressing that unauthorized access to personal data is a punishable offence. He added that the government would take decisive action against any operator found culpable.
He also urged Nigerians to be more cautious when taking digital loans, advising them to thoroughly read and understand loan agreements before accepting offers. According to him, many borrowers unknowingly grant access to their personal data due to failure to review terms and conditions.
The NDPC boss noted that while unethical data practices by digital lenders are a global issue, compliance with Nigeria’s data protection framework remains mandatory. He highlighted that all digital lenders must obtain proper licensing from the Federal Competition and Consumer Protection Commission and adhere strictly to privacy regulations.
Olatunji further explained that several regulatory bodies—including the National Information Technology Development Agency, Nigerian Communications Commission, Central Bank of Nigeria, and the police—are collaborating to ensure compliance and protect consumers.
On ongoing investigations involving companies such as Sterling Bank, Remita, and Temu, he said the commission is following due process, allowing affected organisations to respond before final decisions are made.
He reaffirmed that the NDPC remains committed to safeguarding Nigerians’ personal data and ensuring accountability among data handlers.
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