Nigeria Data Protection Commission (NDPC) has launched investigation into the activities of so-called ‘sharp sharp’ loan operators over alleged violations of customers’ data privacy.
‘Sharp sharp’ loan operators, also known as loan sharks are illegal, unlicensed moneylenders who operate outside of government regulation.
They typically target individuals who cannot access traditional bank loans due to low income or poor credit history.
Vincent Olatunji, national commissioner of the Nigeria Data Protection Commission, told the News Agency of Nigeria, that some of the violations include accessing borrowers’ phone contact lists and using them to reach their family members and friends, as well as sharing images without consent and sending defamatory or threatening messages.
Olatunji, who spoke on the sidelines of a training for Data Protection Officers in Abuja, said the federal government was aware of some lenders breaching customers’ data privacy in their desperate bid to recover loans.
He emphasised the need for increased public awareness, urging Nigerians to understand their rights and carefully review loan agreements before accepting offers.
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.
“Unfortunately, most of the information are from those who obtained loans without going through the agreement they signed before accessing the loans.
“Many operators function solely online, without physical offices. This makes regulations more complex. However, compliance with data protection laws remains mandatory.
“Before any digital loan giver operates in Nigeria, it is mandatory to look at the areas of privacy,” he said.
Olatunji said that Nigeria had several consumer protection entities such as the Federal Competition and Consumer Protection Commission, which takes the lead on consumer protection.
The NDPC boss listed other key agencies involved in regulating the space to include the National Information Technology Development Agency (NITDA), the Nigerian Communications Commission (NCC), the Central Bank of Nigeria (CBN), and the Nigeria Police.
He said that any digital lender must obtain approval and licensing from the FCCPC, with strict requirements to uphold user privacy.
“Part of the requirements is to ensure provisions around privacy are complied with so that they do not infringe on the rights of their customers.
“Any unauthorised access to people’s contacts is an offence and we will come after them,” he warned.
