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The National Commissioner/CEO, Nigeria Data Protection Commission (NDPC), Dr Vincent Olatunji has called for collaboration to address issues related to loan sharks which includes; ensuring compliance, fortifying legal frameworks, and raising awareness to mitigate the impact of loan sharks on individuals and the financial system.
Dr. Olatunji made the call at the 22nd Annual Seminar on Banking and Allied Matters for Judges, themed “The Financial Service Industry and the Judiciary, Upscaling for a Sound Economic Ecosystem,” organised by The Chartered Institute of Bankers of Nigeria in collaboration with the National Judicial Institute.
The NDPC Boss in a presentation on “NDPA 2023 and its Impact on Loan Sharks in Nigeria” emphasised the challenges posed by digital lending companies, commonly referred to as loan sharks, which have become a global trend.
He highlighted the adverse effects on borrowers, including defamation of character, social stigma, psychological stress, and even fatalities.
Olatunji underscored the concerning trend where borrowers neglect to read the privacy policies of these loan sharks, leading to these detrimental consequences.He further informed the audience that the National Committee of Regulators has collaborated to implement effective measures for licensing, monitoring regulatory frameworks, and overseeing the technologies employed by digital lending companies. The aim is to ensure that their operations are lawful, fair and transparent.
The President of the CIBN, Dr Ken Opara, said the seminar was to bring stakeholders in banking and judiciary together to forge a common position on knotty legal issues which had implications on the banking industry.
Opara highlighted some issues facing the financial services industry to include issuance of bankers’ orders by magistrate courts, EFCC’s Post No Debit Order, inappropriate deployment of garnishee, among others.
He re-emphasised the need for the creation of a specialised court to exclusively deal with commercial and financial cases as opposed to having divisions within the existing court structure.
On cybercrime, he said that financial sector was susceptible to cyber-attacks.
Opara said that new types of attacks were introduced, hence the need to improve capacity building in all sectors of the economy to combat this trend.
