The CEO of the Nigeria Data Protection Commission (NDPC), Dr. Vincent Olatunji, has warned about the dangers digital lending companies, known as loan sharks, pose to borrowers and the financial system.
He made this remark at the 22nd Annual Seminar on Banking and Allied Matters for Judges, organised by The Chartered Institute of Bankers of Nigeria in collaboration with the National Judicial Institute.
During a presentation on “NDPA 2023 and its Impact on Loan Sharks in Nigeria”, Dr. Olatunji highlighted the challenges posed by digital lending companies, which have become a global trend. He revealed that these companies often exploit borrowers’ personal data, such as contacts, photos, and social media accounts, to harass them and their relatives for repayment. In cases where the victims fail to pay back, it could lead to defamation of character, social stigma, psychological stress, and even deaths.
Dr. Olatunji further informed the audience that the NDPC, in collaboration with other regulators, such as the Central Bank of Nigeria, the Nigerian Communications Commission, and the Federal Ministry of Justice, had implemented effective measures to regulate the activities of digital lending companies.
These measures include licensing, monitoring, and overseeing the technologies employed by these companies. The aim is to ensure that their operations are lawful, fair and transparent, and that they comply with the Nigeria Data Protection Act (NDPA) 2023, which protects the rights and privacy of data subjects.
During his speech, Dr Olatunji also called on other stakeholders, such as the Chartered Institute of Bankers of Nigeria and the National Judicial Institute, to join forces with the NDPC to address issues related to loan sharks.
He recommended that they should ensure compliance, fortify legal frameworks, and raise awareness to mitigate the impact of loan sharks on individuals and the financial system, which would help the NDPC champion privacy rights and foster a data-driven economy in Nigeria.
