NDPC Probes Loan Shark Operators On Data Breach Policy

Sources claim that the Federal Government is looking into the actions of certain “sharp sharp” lenders due to alleged breaches of consumers’ privacy.

The Nigeria Data Protection Commission (NDPC) is looking into over 400 allegations of privacy violations by digital money lenders, also referred to as loan sharks. The commission reaffirmed this yesterday: it will pursue operators that harass or access data without authorization rights.

This was said by Mr. Vincent Olatunji, the National Commissioner of the Nigeria Data Protection Commission, in a Tuesday interview with the News Agency of Nigeria.

The News Agency of Nigeria said that “Sharp Sharp” loan operators, also referred to as “loan sharks” in some quarters, are mostly unregulated private sector lenders that provide quick loans without collateral to both soliciting and occasionally unsolicited clients.

Speaking outside of a training for Data Protection Officers in Abuja, Olatunji stated that the Federal Government was aware of certain lenders violating the privacy of their clients’ data in an effort to recoup loans.

He claims that some of the infractions include sending threatening or libellous messages, publishing photographs without permission, and gaining access to borrowers’ phone contact lists and using them to contact their friends and family.

The National Commissioner emphasized the need for more public awareness, advising Nigerians to read loan agreements carefully before accepting offers and to be aware of their rights.

However, according to Olatunji, loan operators’ unethical data practices continue to be a global concern.

Because they don’t read loan agreements, many borrowers unintentionally reveal their personal information. This is widespread around the world and is not exclusive to Nigeria.

Regretfully, the majority of the data comes from those who took out loans without reading the contract before doing so.

Many operators have no physical offices and just operate online. Regulations get more complicated as a result. Nonetheless, adherence to data protection regulations is still required.

“Looking at the areas of privacy is mandatory before any digital loan giver operates in Nigeria,” he stated.

According to Olatunji, Nigeria has a number of consumer protection organizations, including the Federal Competition and Consumer Protection Commission, which is in charge of consumer protection.

The National Information Technology Development Agency, the Nigerian Communications Commission, the Central Bank of Nigeria, and the Nigeria Police are among the other important organizations that oversee the industry, according to the head of the NDPC.

Olatunji had claimed that, to protect user privacy, the FCCPC must grant approval and a license to any digital lender to prevent customer data breaches in any form and this is to make sure privacy regulations are followed to avoid violating their clients’ rights, as this is one of the responsibilities.

He issued a warning, saying, “Any unauthorized access to people’s contacts is an offense, and we will come after them.”

Olatunji stated that the commission was closely following due process to guarantee accountability and fairness in the continuing investigations of Sterling Bank, Remita, Temu, and other brands, as investigations take time due to the fact that they have to adhere to established and laid down protocols. 

Organizations are invited, their proposals are reviewed, and they are given the chance to explain themselves.

Olatunji further stated that the investigating team has finished the procedure and made its conclusion regarding Sterling Bank.

He also stated that the process is ongoing for Temu, which has been granted an extension to appear before the commission.

Fidelity Bank and MultiChoice Nigeria were recently fined ₦555.8 million and ₦766.2 million, respectively, by the NDPC over various data privacy violations.

Olatunji reaffirmed that protecting Nigerians’ personal information and guaranteeing accountability among data controllers and processors remained the NDPC’s top priorities. (NAN).

Under the new Digital Economy and Online Lending (DEON) Regulations, the FCCPC has set an April 2026 deadline for every digital lender to complete its online lending registration. Consumer protection is also advising Nigerians who are experiencing harassment that they can report incidents directly to the commission via its website or toll-free lines.