The Federal Government has commenced an investigation 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, Mr Vincent Olatunji, disclosed this in an interview with the News Agency of Nigeria (NAN) on Tuesday.
“Sharp sharp” loan operators, often referred to as loan sharks, are largely unregulated private lenders that provide instant loans—sometimes without collateral—to both willing and unsolicited borrowers.
Speaking on the sidelines of a training programme for Data Protection Officers in Abuja, Olatunji said the government was aware that some of these operators engage in unethical practices while attempting to recover loans.
He explained that such violations include accessing borrowers’ phone contact lists without consent, reaching out to their family members and friends, sharing personal images, and sending defamatory or threatening messages.
According to him, these actions constitute serious breaches of data protection laws and highlight the need for stricter enforcement and public awareness.
Olatunji urged Nigerians to better understand their rights and carefully review loan agreements before accepting digital loan offers. He noted that many borrowers unknowingly expose their personal information by failing to read the terms and conditions attached to such services.
“Many borrowers unknowingly expose their personal data due to failure to read loan agreements. This issue is not limited to Nigeria; it is a global concern,” he said.
The NDPC boss also pointed out that many of these loan operators function solely online without physical offices, making regulation more challenging. However, he stressed that compliance with data protection laws remains mandatory for all digital lenders operating in Nigeria.
He added that proper scrutiny of privacy standards is required before any digital loan service is allowed to operate in the country, as part of efforts to safeguard citizens’ personal data.
