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The Nigeria Data Protection Commission (NDPC) is currently conducting an investigation into more than 400 complaints received from users of online lending platforms, as revealed by a source familiar with the matter.
The source stated on Wednesday (June 28, 2023) that various online loan providers, commonly referred to as “loan sharks,” are being closely examined by the commission before any approvals are granted. The Federal Competition and Consumer Protection Commission has mandated that online lenders must obtain privacy compliance clearance from the NDPC before receiving approval. Additionally, it has been discovered that the commission is actively investigating over 400 complaints related to the online lending sector.
According to the Nigerian Data Protection Regulation Performance Report 2020-2021, Nigerians made 1,350 calls in 2021 to report data breaches, as previously reported by The PUNCH.
In August 2021, The PUNCH reported that Soko Lending Company Limited, an online lending platform, was fined N10 million for violating privacy regulations.
The official source indicated that Soko Loan is seeking to enter the digital lending market but has not yet obtained approval from the commission.
Furthermore, the commission has been receiving regular complaints concerning unlawful data processing, unauthorized access to personal data, and violations of data subjects’ rights.
Under the recently enacted Data Protection Act of 2023, companies found guilty of data breaches may face fines amounting to two percent of their gross revenue. For instance, a data controller with an annual turnover of N200 billion could potentially be fined up to N2 billion, representing two percent of their gross revenue. Additionally, offenders may be liable for a one-year prison sentence, as stipulated by the new Act.
The NDPC previously announced its intention to prosecute the Chief Executive Officer of any government agency found responsible for data breaches. Dr. Vincent Olatunji, the National Commissioner for the NDPC, stated that while private organizations can be fined for data breaches, imposing fines on government agencies essentially means the government is fining itself.
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