The Federal Government has launched investigations into the activities of some digital loan operators popularly known as “Sharp Sharp” lenders over alleged violations of customers’ data privacy.
The National Commissioner of the Nigeria Data Protection Commission (NDPC), Vincent Olatunji, disclosed this on Tuesday in Abuja during an interview with the News Agency of Nigeria (NAN).
So-called “Sharp Sharp” loan operators—often described as loan sharks—are mostly private-sector digital lenders that offer quick loans, sometimes to unsolicited customers, usually without collateral.
Olatunji said the government was aware that some of these lenders had breached customers’ data privacy in attempts to recover loans.
According to him, some operators allegedly access borrowers’ phone contact lists and use them to reach family members and friends in a bid to pressure defaulters.
Other reported violations include sharing borrowers’ images without consent and sending defamatory or threatening messages to individuals connected to the debtor.
Speaking on the sidelines of a training programme for Data Protection Officers in Abuja, the NDPC commissioner stressed the importance of public awareness about personal data rights.
He urged Nigerians to carefully read and understand loan agreements before accepting digital credit offers.
“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,” Olatunji said.
He explained that most of the complaints received by the commission involved borrowers who agreed to loan terms without fully understanding the permissions granted to lenders regarding their personal data.
Olatunji also noted that many digital loan providers operate solely online without physical offices, which can complicate regulatory enforcement.
Despite this challenge, he maintained that compliance with Nigeria’s data protection laws remains mandatory for all digital lenders operating in the country.
“Before any digital loan giver operates in Nigeria, it is mandatory to look at the areas of privacy,” he said.
The NDPC boss pointed out that several government agencies play roles in protecting consumers in the digital lending space.
He listed the Federal Competition and Consumer Protection Commission (FCCPC), the National Information Technology Development Agency (NITDA), the Nigerian Communications Commission (NCC), the Central Bank of Nigeria (CBN) and the Nigeria Police Force as key institutions involved in regulation and enforcement.
According to Olatunji, every digital lender must obtain approval and licensing from the FCCPC and meet strict requirements aimed at protecting users’ 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,” he said.
He warned that unauthorised access to people’s contacts constitutes a serious offence and vowed that the commission would pursue violators.
“Any unauthorised access to people’s contacts is an offence and we will come after them,” he said.
Olatunji also addressed ongoing investigations involving Sterling Bank, Remita and Temu, explaining that the NDPC was strictly following due process.
He said the commission had completed its investigation process concerning Sterling Bank and had issued its decision, while the probe into Temu was still ongoing after the company requested additional time to appear before the commission.
The NDPC commissioner reiterated that the agency’s priority remained ensuring accountability among data controllers and processors while safeguarding the personal data of Nigerians.
