ABUJA, Nigeria (VOICE OF NAIJA)-The Federal Government has launched an investigation into the activities of some ‘sharp sharp’ loan operators over alleged violations of customers data privacy.
Mr Vincent Olatunji, the National Commissioner of the Nigeria Data Protection Commission (NDPC), disclosed this in an interview with the News Agency of Nigeria (NAN) on Tuesday.
‘Sharp Sharp’ loan operators, also referred to in some quarters as loan sharks, are private, largely unregulated lenders that provide quick loans to both soliciting and, at times, unsolicited customers without requiring collateral.
He spoke on the sidelines of a training programme for Data Protection Officers (DPOs) in Abuja.
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Olatunji said the government is aware that some of these lenders compromise customers data privacy in attempts to recover loans.
He explained that such violations include accessing borrowers phone contact lists to reach family members and friends, sharing images without consent, and sending defamatory or threatening messages.
The commissioner stressed the importance of public awareness, urging Nigerians to understand their rights and carefully review loan agreements before accepting offers.
Olatunji, however, noted that unethical data practices by loan operators are a global issue.
“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 loan 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.
He added that Nigeria has several consumer protection bodies, including the Federal Competition and Consumer Protection Commission (FCCPC), which plays a leading role in safeguarding consumers.
Other regulatory agencies involved include the National Information Technology Development Agency (NITDA), Nigerian Communications Commission (NCC), Central Bank of Nigeria (CBN), and the Nigeria Police.
According to him, all digital lenders must obtain approval and licensing from the FCCPC, with strict requirements to protect user privacy.
“Part of the requirements is to ensure provisions around privacy are complied with so they 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.
On ongoing investigations involving Sterling Bank, Remita, and Temu, Olatunji said the commission is following due process to ensure fairness and accountability.
“Investigations take time because we must follow laid-down procedures. We invite organisations, review their submissions, and give them the opportunity to defend themselves.
“For Sterling Bank, we have completed the process and issued our decision.
“For Temu, the process is ongoing, and they have requested an extension of time to appear before the commission, which has been granted.” he said.
Olatunji reiterated that the NDPC remains focused on ensuring accountability among data controllers and processors while protecting the personal data of Nigerians. (NAN)