Nigeria Data Protection Commission (NDPC) has launched investigation into the activities of so-called ‘sharp sharp’ loan operators over alleged violations of customers’ data privacy.

‘Sharp sharp’ loan operators, also known as loan sharks are illegal, unlicensed moneylenders who operate outside of government regulation.

They typically target individuals who cannot access traditional bank loans due to low income or poor credit history.

Vincent Olatunji, national commissioner of the Nigeria Data Protection Commission, told the News Agency of Nigeria, that some of the violations include accessing borrowers’ phone contact lists and using them to reach their family members and friends, as well as sharing images without consent and sending defamatory or threatening messages.

Olatunji, who spoke on the sidelines of a training for Data Protection Officers in Abuja, said the federal government was aware of some lenders breaching customers’ data privacy in their desperate bid to recover loans.

He emphasised the need for increased public awareness, urging Nigerians to understand their rights and carefully review loan agreements before accepting offers.

Olatunji, however, said unethical data practices by loan operators remained a global concern.

“Many borrowers unknowingly expose their personal data due to failure to read loan agreements. This is not peculiar to Nigeria; it is common in every part of the world.

“Unfortunately, most of the information are from those who obtained loans without going through the agreement they signed before accessing the loans.

“Many operators function solely online, without physical offices. This makes regulations more complex. However, compliance with data protection laws remains mandatory.

“Before any digital loan giver operates in Nigeria, it is mandatory to look at the areas of privacy,” he said.

Olatunji said that Nigeria had several consumer protection entities such as the Federal Competition and Consumer Protection Commission, which takes the lead on consumer protection.

The NDPC boss listed other key agencies involved in regulating the space to include the National Information Technology Development Agency (NITDA), the Nigerian Communications Commission (NCC), the Central Bank of Nigeria (CBN), and the Nigeria Police.

He said that any digital lender must obtain approval and licensing from the FCCPC, with strict requirements to uphold user privacy.

“Part of the requirements is to ensure provisions around privacy are complied with so that they do not infringe on the rights of their customers.

“Any unauthorised access to people’s contacts is an offence and we will come after them,” he warned.

Ecobank Transnational Incorporated delivered one of its strongest performances in years in 2025, posting $801 million in pre-tax profit, up 21% from a year earlier, alongside net revenue of $2.45 billion, a 17% increase.

The results mark a high point since Jeremy Awori, CEO took over in 2022 and offer early validation of the group’s long-criticized Growth, Transformation and Returns strategy.

The improvement is especially clear in operating efficiency.

The cost-to-income ratio dropped to 48.3%, from 52.8% a year earlier and above 70% in the group’s more difficult years before 2018. For a bank operating across more than 33 markets with uneven macroeconomic conditions, the shift is significant: Ecobank now spends less than 49 cents to generate one dollar of revenue.

It also marks a structural change, with revenue growth now outpacing expenses at the group level.

Performance was led by the Corporate and Investment Banking division, which posted $697 million in pre-tax profit, up 40%, driven by trade finance, cash management, and capital markets activity.

The Consumer and Commercial Banking segment followed with $480 million, up 27%, supported by stronger deposit mobilization and a 33% increase in lending.

Customer deposits rose by $4.9 billion to reach $25.3 billion, while total loans stood at $12.8 billion.

Return on tangible equity reached 27.8%, signaling a renewed capacity to generate value.

The board’s recommendation to pay $40 million in dividends, or $0.0016 per share, carries more symbolic weight than financial impact.

Over the nine years leading up to 2022, Ecobank paid dividends only twice, the last time in 2016.

From 2017 to 2021, shareholders saw no payouts as the group focused on repairing its balance sheet, transitioning to Basel III standards, and navigating the pandemic.

Ola Olukoyede, executive chairman, Economic and Financial Crimes Commission (EFCC), has cautioned Nigerian banks against granting loans without credible collateral, warning that such practices often lead to insider abuse and non-performing loans.

Olukoyede issued the warning recently when he received Mufutau Olawale Abiola, chief audit executive, First Bank Plc, who led a delegation on a courtesy visit to the Lagos Zonal Directorate 2 of the Commission in Ikoyi.

Speaking through  Bawa Usman Kaltungo, acting zonal director, Lagos Zonal Directorate 2, Ikoyi,  Olukoyede expressed grave concerns over how banks in the country grant loans, noting that loans backed only by personal guarantees, including those of top executives, are inadequate and put depositors’ funds at risk.

He said: “We have issues with banks’ mode of giving loans. The process often shows insider abuse.”

While emphasizing that banks should desist from issuing loans without visible or credible collateral, he added that “Top-down loans are not secured. You cannot give a loan based solely on the personal guarantee of the Chief Executive.

This is not security. Banks must not issue loans without verifiable collateral. If there is proper collateral for loans obtained by bank customers, this will reduce the rate of non-performing loans.”

He further warned that a bank is only a custodian, and that giving loans without adequate collateral “amounts to tampering with depositors’ funds.”

He also urged banks to implement measures, including thorough due diligence on its customers, to prevent loan defaults.

According to him, “Even in situations where you outsource due diligence, there must be a clause of liability,” he said.

Reaffirming the Commission’s commitment to continued cooperation with the bank in tackling financial crimes, he urged the bank to release its staff promptly when invited during investigations of alleged financial crimes.

“When we invite your staff, especially where insider connivance is suspected, you must release them so we can jointly fight economic and financial crimes. We must work together to stay ahead of criminals. Let me add that where money is, that is where people’s hearts are. Most of the time, we escalate issues to foreign security agencies as may be necessary,” he added.

Earlier, Abiola expressed gratitude to the EFCC leadership for the engagement, noting that the visit was intended to strengthen the existing collaboration between the bank and the Commission.

While urging the EFCC to expedite investigations into cases involving its staff and others, Abiola also disclosed that a designated team in his bank handles requests from the EFCC.