The Nigeria Data Protection Commission (NDPC) has announced an investigation into more than 400 instances of privacy breaches involving digital loan companies, commonly referred to as loan sharks, in Nigeria. This disclosure was made in the "Nigeria Data Protection Annual Report 2023".

The commission revealed that it is collaborating with regulators to address these issues and clean up the digital lending space. Specifically, they are working with the Federal Competition and Consumer Protection Commission (FCCPC) to ensure that lending companies obtain data protection clearance from NDPC before commencing operations. Furthermore, NDPC is insisting on full compliance with the Nigeria Data Protection Act (NDPA), requiring each online lending company to conduct a thorough Data Privacy Impact Assessment.

Efforts are underway to address over 400 cases of privacy breaches linked to shadowy loan sharks, with third-party platforms cooperating with regulators to implement deterrent measures. As of the 4th Quarter of 2023, 203 loan apps were approved under the Joint Enforcement and Regulatory Taskforce (JERTF), while 38 received conditional approval. Additionally, 85 companies and apps are under scrutiny, and 47 have been delisted.

The commission also highlighted the integration of data protection into policies by regulators and security establishments, even at the design level. Notably, in March 2022, the FCCPC, alongside enforcement agencies, conducted raids on the offices of "illegal" digital loan companies operating in Ikeja, Lagos, due to alleged consumer rights abuses. This enforcement action was personally led by Babatunde Irukera, the then executive vice-chairman of the commission, who emphasized the importance of bringing loan apps into the regulatory framework.

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