The Federal Government, through the Nigeria Data Protection Commission (NDPC), has launched an investigation into the activities of digital loan operators commonly known as “loan sharks” over alleged violations of customers’ data privacy.
The National Commissioner of the NDPC, Vincent Olatunji, disclosed that authorities are probing reports that some lenders engage in unethical data practices while attempting to recover loans.
According to the commission, some of the alleged violations include accessing borrowers’ phone contact lists, reaching out to their family and friends without consent, and sharing personal information or images in a bid to pressure repayment.
Other practices under investigation include sending threatening or defamatory messages to borrowers, actions which regulators say clearly breach Nigeria’s data protection laws.
The NDPC noted that many of these loan operators function primarily online without physical offices, making regulation more complex. However, it stressed that compliance with data protection laws is mandatory, regardless of how the services are delivered.
The commission also urged Nigerians to be more cautious when dealing with digital lenders, particularly by reading and understanding loan agreements before accepting offers, as many users unknowingly grant access to sensitive personal data.
Authorities say the investigation is part of broader efforts to sanitise Nigeria’s digital lending space and protect citizens from exploitation, as concerns grow over the increasing use of personal data for harassment and intimidation.
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