When Borrowing Becomes Harm and NITDA Responds
By Fatimah Yusuf Usman
In an era where a few smartphone taps can secure a loan in minutes, digital lending has become a financial lifeline for millions of Nigerians. There are no queues, no forms, no physical encounters—just seamless access to credit.
But behind this convenience lies a troubling underside. Stories abound of borrowers subjected to harassment, privacy breaches, and the misuse of their personal data.
And this is precisely where the quiet but firm intervention of the National Information Technology Development Agency, NITDA, begins. NITDA is not a lender, nor does it offer loans.
Yet it has emerged as a defender of digital dignity, stepping in to protect Nigerians from the rising tide of exploitation within the mobile lending space.
Its mission is clear: to safeguard citizens’ privacy and uphold their digital rights in an economy that increasingly moves online. Over the past decade, the rapid growth of fintech in Nigeria has given rise to an array of mobile lending apps.
Many of these platforms appeal to students, traders, artisans, and others who have been traditionally excluded from formal banking services. On the surface, this is a story of innovation and financial inclusion.
But underneath, there has been a growing trend of abuse. Some lenders harvest borrowers’ contact lists and, in the event of a missed payment, begin to send defamatory messages to family members, colleagues, and even employers.
In more extreme cases, they use borrowers’ personal photographs and sensitive information to shame or coerce them into repayment. What was once financial assistance has, in some instances, become digital bullying.
NITDA’s intervention came into the national spotlight in 2021 when it imposed a ₦10 million fine on Soko Lending Company. The company had flagrantly violated the Nigeria Data Protection Regulation by unlawfully mining personal data.
The sanction sent a strong and timely signal that the era of unchecked data abuse was coming to an end. Since then, NITDA has expanded its approach by working collaboratively with the Federal Competition and Consumer Protection Commission and the Central Bank of Nigeria.
Together, they are building a framework that compels digital lenders to operate within the bounds of both law and conscience. While NITDA does not regulate loan conditions or determine interest rates, its core focus lies in ensuring that digital lenders respect the boundaries of data protection.
Through its regulatory guidance, NITDA is promoting transparency in how apps collect and store user data. It insists that consent must be obtained before any sensitive information is accessed.
It encourages adherence to international best practices in consumer rights and cyber security. And above all, it reminds tech innovators that real progress cannot be built on the violation of personal freedoms.
These actions matter profoundly in a country where digital literacy is still evolving, and where many remain unaware of their rights in the digital space. In such a climate, silent exploitation often thrives.
NITDA is striving to change that reality—not by stifling innovation, but by making innovation safer for everyone. In doing so, it is helping to build a more trustworthy fintech ecosystem, one that attracts responsible investors and expands financial access to the underserved.
The work of NITDA is not always loud or dramatic. It rarely dominates headlines. Yet it is laying the foundation for a secure and ethical digital economy. Its efforts ensure that as Nigeria races toward a tech-driven future, the humanity of its citizens remains protected.
With the growing sophistication of AI in lending, the use of facial recognition, and data-driven credit scoring, the relationship between finance and privacy is becoming more complex.
But if Nigeria is to lead Africa’s digital transformation, then its rules must be strong, and its citizens’ rights must remain non-negotiable. NITDA’s quiet work speaks volumes.
In a space where many have been hurt silently, it is offering something rare—protection without noise, reform without applause. It is leading a digital transformation that respects people as much as it embraces progress.
Fatimah Yusuf Usman writes from PRNigeria Centre, Abuja. She can be reached via: [email protected].