The Federal Government has launched an investigation into the activities of so called sharp sharp loan operators over alleged violations of customers’ data privacy, raising concerns about the practices of digital lending platforms in Nigeria.
The National Commissioner of the Nigeria Data Protection Commission, Vincent Olatunji, disclosed this while speaking during a training session for Data Protection Officers in Abuja. He noted that authorities are aware of several cases where loan providers misuse personal data in attempts to recover debts.
According to Olatunji, some of these operators illegally access borrowers’ phone contact lists and use them to reach family members and friends. In some cases, they allegedly share personal images without consent and send threatening or defamatory messages to pressure repayment.
He stressed that such actions are clear violations of data protection laws and warned that offenders would face consequences. He also urged Nigerians to be more cautious when engaging with digital lenders, emphasizing the importance of reading and understanding loan agreements before accepting any offer.
Olatunji explained that many of these loan operators function entirely online without physical offices, making regulation more challenging. However, he maintained that all digital lenders must comply with Nigeria’s data protection laws regardless of their structure.
He highlighted the role of key regulatory bos, including the Federal Competition and Consumer Protection Commission, National Information Technology Development Agency, Nigerian Communications Commission, Central Bank of Nigeria, and the Nigeria Police Force, all of which play roles in regulating the sector.
He added that digital lenders must obtain proper licensing from the FCCPC and adhere strictly to privacy standards. Unauthorized access to personal data, he warned, remains a punishable offence.
The commission also confirmed ongoing investigations involving companies such as Sterling Bank and Remita, while inquiries into Temu are still in progress.
The government reaffirmed its commitment to protecting citizens’ data and ensuring accountability among digital service providers.
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