The Nigeria Data Protection Commission (NDPC) has disclosed its ongoing investigation into more than 400 cases of privacy breaches involving online loan apps.
According to the commission’s 2023 Annual Report, the surge in data privacy breaches correlates with the proliferation of digital lending platforms.
The NDPC highlighted its findings in the report, indicating that these loan apps exhibit excessive intrusiveness in accessing users’ personal data.
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Despite Google’s policy introduced in April 2023 to restrict loan apps from accessing users’ photos and contacts, the NDPC noted that the practice persists.
In response to these breaches, the NDPC is advocating for a ban or restriction on mobile numbers used by lenders to compromise customers’ privacy.
The commission emphasized that such practices violate data protection principles and compromise users’ privacy by accessing their contacts, pictures, and messages.
Haruna Michael, a user of one of these loan apps, recounted an incident where the lender misused his photos, labeling him as a criminal when he defaulted on a loan repayment.
The NDPC addressed these concerns, stating that they are adopting systemic solutions by collaborating with other regulators and third-party platforms utilized by lenders.
Additionally, the NDPC revealed its draft of the Nigeria Data Protection Act-General Application and Implementation Directive, aimed at curbing data breaches and promoting data ethics and privacy standards.
Furthermore, the commission highlighted its collaboration with regulators, such as the Federal Competition and Consumer Protection Commission, to enforce data protection regulations in the digital lending sector.
Lending companies are now required to obtain data protection clearance from the NDPC before operating, ensuring greater accountability and safeguarding users’ privacy.
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