FG Investigates Loan Apps Offering “Sharp Sharp” Credit, Sends Serious Warning to Nigerians
- The Federal Government is investigating digital loan operators over alleged data privacy violations
- The government advised Nigerians to read loan agreements carefully before accepting offers
- Multiple regulatory bodies, including FCCPC and CBN, are involved in overseeing digital lending activities
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The federal government has begun investigating the activities of some digital 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 in an interview with the News Agency of Nigeria (NAN) on Tuesday.
Source: Getty Images
Alleged data privacy violations
Olatunji said the government was aware that some digital lenders were violating users’ privacy in their attempts to recover loans.
According to him, such practices include gaining access to borrowers’ phone contact lists, reaching out to their family and friends, and sharing personal images without consent. He added that some operators also send threatening or defamatory messages to customers.
NAN reports that these ‘sharp sharp’ loan providers, often described as loan sharks, are mostly private, online-based lenders that offer quick, collateral-free loans, sometimes without formal regulation.
Call for public awareness
The NDPC boss urged Nigerians to be more cautious when engaging with digital lenders, especially by reading and understanding loan agreements before accepting offers.
He noted that many borrowers unknowingly expose their personal data due to failure to review the terms they agree to, adding that such issues are not unique to Nigeria but occur globally.
“Many operators function solely online without physical offices, making regulation more complex. However, compliance with data protection laws remains mandatory,” he said.
Regulatory oversight and enforcement
Olatunji explained that several agencies are involved in protecting consumers and regulating digital lending in Nigeria. These include the Federal Competition and Consumer Protection Commission (FCCPC), which leads in consumer protection.
Other agencies mentioned are the National Information Technology Development Agency (NITDA), Nigerian Communications Commission (NCC), Central Bank of Nigeria (CBN), and the Nigeria Police Force.
He added that digital lenders must obtain approval from the FCCPC and comply with strict data protection requirements.
“Any unauthorised access to people’s contacts is an offence and we will come after them,” he warned.
Update on ongoing investigations
On other investigations, Olatunji said the commission was following due process in handling cases involving organisations such as Sterling Bank and Remita, noting that a decision had already been issued in Sterling Bank’s case.
He added that the probe involving Temu was still ongoing, with the company requesting and receiving an extension to appear before the commission.
Olatunji reiterated that the NDPC remains focused on ensuring accountability among data handlers and protecting the personal information of Nigerians.
Source: Getty Images
FCCPC removes non-compliant loan apps from approved register
Legit.ng earlier reported that the FCCPC had begun the enforcement of the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025.
The commission explained that enforcement actions were being carried out in a fair and orderly manner, stressing that the Commission’s goal was to improve transparency and consumer confidence rather than disrupt legitimate businesses.
As part of the enforcement measures, the FCCPC has withdrawn the conditional approval earlier granted to some digital money lenders that failed to complete the required regularisation process during the transition period.
Source: Legit.ng
