The Federal Government has launched an investigation into the activities of some fast-loan operators, popularly known as “sharp sharp” lenders, over alleged breaches of customers’ data privacy.
The National Commissioner of the Nigeria Data Protection Commission (NDPC), Vincent Olatunji, disclosed this during a recent engagement in Abuja, noting that authorities were aware of widespread complaints against some digital lenders.
He explained that several of these operators allegedly access borrowers’ phone contact lists without consent, using the information to contact friends and family members, share personal images, and send threatening or defamatory messages in attempts to recover loans.
Olatunji stressed the importance of public awareness, urging Nigerians to carefully review loan agreements before accepting any offers, as many users unknowingly grant access to sensitive personal data.
He added that while many of these digital lenders operate without physical offices—making regulation more challenging—they are still required to comply with Nigeria’s data protection laws.
The NDPC boss highlighted that multiple agencies are involved in regulating the sector, including the Federal Competition and Consumer Protection Commission (FCCPC), National Information Technology Development Agency (NITDA), Nigerian Communications Commission (NCC), Central Bank of Nigeria (CBN), and the Nigeria Police.
According to him, digital lenders must obtain proper licensing from the FCCPC and adhere strictly to privacy standards to avoid infringing on customers’ rights.
“Any unauthorised access to people’s contacts is an offence, and we will take action against violators,” he warned.
Olatunji also revealed that the commission is handling investigations involving other organisations, including Sterling Bank, Remita, and Temu.
He said a decision has already been reached in the case involving Sterling Bank after due process was followed, while the investigation into Temu is still ongoing. According to him, Temu has requested additional time to appear before the commission, which has been granted.
He emphasised that all investigations are conducted in line with laid-down procedures, allowing organisations to respond to allegations before any final decision is made.
Olatunji reaffirmed that the NDPC remains committed to ensuring accountability among data controllers and processors, while safeguarding the personal data and privacy rights of Nigerians.